While borrowing a loan, you need to make some considerations. You need to fill out all the important details when applying for a loan. Accountability is really key to gaining the moneylender’s trust.
Only borrow what you need and can repay. Remember that you need a loan that you can comfortably pay without any issues. Also, when getting a loan, the legal moneylenders need to explain to you in a language that you can easily understand.
Before deciding on a moneylender, you need to shop around to get the most reliable one. Some of the best are like Tradition Credit Co Pte Ltd. If you want to get a private money lender you need to know this.
How To Borrow Personal Loans From A Legal Moneylenders
1. Type Of Loan From The Private Money Lender.
There are two types of loans, secured and unsecured loans. When it comes to secured loans, you can obtain any amount. However, there are restrictions when it comes to unsecured loans.
Image source: Ministry of Law
Also, consider the type of loans that the specific company offers. . Tradition Credit Co PTE ltd offers personal loans, short-term loans, unsecured loans, cash advance loans, business loans, SME loans, Expatriates loans, and car-renewal loans. Hence, you can choose a loan according to your needs.
2. Check The Interest Rates
Before borrowing a personal loan, you need to consider the interest rate. In Singapore, in 2015 it was agreed that the maximum interest rate is 4% p.m. This is despite the borrower’s income, secure, or unsecured loan.
This is based on the amount of principal amount taken. The late interest can only be charged in late payments. You need to check all the regulations on the website.
3. Check Whether The Money Lender Is Licensed Or Not
Another great thing to check is whether the moneylender is licensed or not. Try your best not to borrow from an unlicensed moneylender. You can check in the Ministry of Law document to verify whether a money lender is licensed.
For example, Tradition Credit CO PTE. LTD is one of the verified legal moneylenders in Singapore. Hence, you can trust them when making a loan request.
Also, you can know whether the company is a licensed money lender by how they approach you. An unlicensed moneylender can talk badly or behave in an unthreatening manner. They can even retain some of your original documents.
Also, they may decide to give you a loan without the note of the contract. Money sharks are also unreliable and can grant you a loan without any formality. Hence, you need to be wary of that. If they are unlicensed, they can withhold part of your principal loan amount.
4. Check The Granted Loan
When borrowing a loan, you need to check whether you have been given the right loan amount.
Also, be sure of the interest rates to ensure you pay the right loan installments on time to prevent incurring any additional fees. Also, always get a receipt when you repay any loan.
Moreover, each month, you need to get the bank statement for all your loans and check their correctness. Ensure you keep all the documents well.
5. Have Relevant DocumentsAnd Take them To The Private Money Lender
The application procedure for most licensed moneylenders is almost the same. You just need to apply for the online application that only takes a few minutes. Once done, you will get contacted to discuss the application and options. Once you agree with the customer service personnel, you will need to bring the supporting documents to verify your eligibility and confirm the amount.
Once everything is well, you will get the funds on the same day. Most of the funds at Tradition Credit PTE Ltd are given on the same day. You need to provide various documents that show proof of your identity like your identification card, proof of address that attests to your residential address, and proof of income like your payslip.
Also, check whether the company has a physical address. This should give you confidence in the moneylender.
Tradition Credit Co Pte Ltd
Blk 205 Bedok North Street 1
Tel: 6283 1323
6. Get Your Credit Report
Also, before borrowing a loan, you need to get a credit report. This will help you know how you can approach a licensed money lender to get a loan. Also, always strive to have a good credit score. This makes it easier to get loans from licensed money lenders.
Whenever taking loans, try to take the kind that you can be able to pay up to prevent you from having too many loans to pay up. At times it can be frustrating to you and your family.
In as much as your income can help to provide a steady flow of income to pay the loan, what if you get fired? Do you have a backup plan that can help to pay off the loan? That’s something that you need to keep in mind.
Always check the policies in company to know how lenient they will be with you when you get a loan from them. Information is power if you want to have a good relationship with the moneylenders.
Also, check how long the private moneylender has been in existence to ensure that they have good reviews and won’t frustrate you at all. Also, check the rules they have if you want to attain a cash advance.