If you want a loan in a hassle-free and easy way, then choose a personal loan or private loan either from banks or licensed moneylenders. Personal loans are considered as the easiest loan to get because there are small processes and fewer formalities.
Before proceeding to take up a private loan Singapore or personal loan, know them a little bit.
About personal loan in Singapore:
The personal can be defined as an unsecured loan provided to people for any use that the person doesn’t want to state. It is called unsecured because there is no bounded collateral that has to be used in order to get the loan money.
Precisely the moneylender or bank that provides a loan does not have the right to possess any of the property of the person if he/she does not repay the loan on time or even if the loan remains unpaid.
- Advantages of personal loan:
If you need money on an urgent basis or in case of an emergency, a personal loan is the best choice to get money easily and instantly. Moreover, you might get loan approval and loan amount within a day or two.
As mentioned above, personal loans are unsecured, so there is no need for any collateral for the personal loan agreement. Hence, the lender would not be able to occupy any of your assets when you are at fault in repaying the loan amount.
- Disadvantages of Personal loan:
The only disadvantage, a person can have higher rates of interest than any other loan. Sometimes the interest rates are too high that they cross the interests on credit cards.
How much amount can one take for a Personal loan?
The amount of money a person can borrow as a personal loan completely depends on his annual income and credit score. Banks that provide personal loans keep this criterion as there is no collateral. In Singapore, banks will provide a personal loan if you have a minimum annual income of S$30,000. If you have a higher income than this, you can get approval for more loan amounts. Also, you have to provide a credit score to the bank. If you fulfill the minimum credit score criteria, then you will get personal loan approval.
What if you don’t meet these requirements to get a personal loan? No worries, you can get a personal loan from licensed moneylenders Singapore.
What are licensed money lenders in Singapore?
Licensed moneylenders in Singapore are approved lenders by the Ministry of Law. They can provide personal loans to Singapore citizens, permanent residents or visitors, or foreigners in Singapore with valid Employment Passes.
Licensed money lenders in Singapore are an alternative choice for people to consider when they need a personal loan or urgent loans but do not satisfy the criteria of banks. The processes by licensed moneylenders are generally faster and less completed compared to getting a personal loan from traditional banks.
Since you need an instant cash loan in unexpected situations of a medical emergency or any other complicated situation, you might be wondering if there are any time licensed money lenders in Singapore that you can use.
Verification of licensed moneylenders:
There are so many moneylenders in Singapore, but not all are licensed money lenders. So, one has to be careful before choosing them for getting personal loans. A list of licensed money lender in Singapore that can help you by providing personal loans is there, but you need to verify them to prevent any problem later.
- To verify a licensed moneylender, one can check the business name, license number, office address, contact details from the website.
- A licensed moneylender never seeks a person’s details other than the documents needed in the procedure of approving a personal loan.
- Licensed moneylender induces fixed 4% interest on a personal loan.
This is how you can get a personal loan in the two easiest ways. But you have to be careful with the frauds happening while taking up the loans.