Many Singaporeans need money to tide over financial challenges or for urgent expenses. However, not all are aware that it is a legal obligation to borrow only as much as necessary from licensed money lenders. Moreover, it is important to understand the terms and conditions of your loan.
For example, Singapore law requires that all licensed money lenders explain their interest rates in a clear manner and provide you with a copy of the contract for your records. Moreover, they must also tell you about your rights and where to lodge a complaint against them if you have any concerns. Therefore, it is best to shop around to find the money lender with the lowest interest rate.
Another thing to note is that licensed money lenders can charge a maximum of 4% interest per month for late repayments. Hence, it is best to always make your monthly repayment on time. If you are unsure about how to manage your debt, you can seek help from credit counselling services such as Credit Counseling Singapore (CCS) for free advice and counselling.
Besides being a quick way to borrow money, licensed money lenders in Singapore offer flexible repayment terms. Moreover, they can tailor your loan to meet your specific needs and budget. They are also regulated by the government so you won’t have to worry about getting ripped off.
To apply for a loan from a licensed money lender, you’ll need to show proof of residency in Singapore. Additionally, the loan amount is capped at 6 times your monthly income by law. This is to prevent borrowers from being overburdened with debt. borrow money in singapore