Whether it is to take up a personal loan, apply for one from a licensed moneylender or utilise it to maximise personal finance, these ideas are becoming acceptable methods to strengthen one’s financial standing. More people are now aware that a legal personal loan in Singapore is a viable and beneficial service that can help to consolidate debts, ease cash flow, and even aid money-making ventures when they’re short of capital.
Legal personal loan in Singapore is readily available from licensed moneylenders like UK Credit. These are unsecured short term loans that don’t require collateral or guarantor, and the approval process is relatively simple since the loan sums are much lower than secured loans.
If you need a personal loan, apply with these five basic steps:
Step 1: Personal Loan – Apply With a Trustworthy and Licensed Moneylender
Before committing to any loan from a lender, make sure to research the lender’s background to ensure it’s a licensed moneylender that is approved by the Ministry of Law. The lender should have a license number that appears in the list of registered moneylenders provided by the Registry of Moneylenders.
You can easily verify this by asking the money lender for legal documentation. If the money lender refuses or can’t provide relevant proofs to authenticate its legitimacy, don’t take up a loan with them no matter how attractive the package is.
Getting entangled with an unlicensed moneylender might get you scammed for more money than you can afford. Such illegal lenders tend to hook desperate and unsuspecting borrowers with attractive offers but trick them into paying a deposit as processing fees. In most cases, these illegal lenders, also known commonly as loan sharks, would also charge absorbent interest rates and stipulate ambiguous terms and conditions in the loan agreement that are illegal in Singapore.
So keep your eyes wide open when shopping for a personal loan, apply only from a licensed moneylender in Singapore.
Learn more about licensed moneylenders and demystify common myths about them here.
Step 2: Review the Loan Agreement To Ensure It Is Legit
Too many borrowers rushed into signing a loan agreement without first verifying if the terms and conditions are legally binding in Singapore. Here are a few conditions in an agreement to ascertain you’re offered a legal personal loan in Singapore from a licensed moneylender:
- For a personal loan, apply only if the monthly interest rate is 4% or below. In Singapore, the maximum loan rates are regulated at 4% per month, regardless of the borrower’s income or loan type.
- Approved licensed moneylenders are not permitted to charge a late interest on outstanding loans not due for payment. Late charges can only be levied on the amount due but not yet paid.
- Chargeable fees must not exceed S$60 for each month of late repayment.
- Other chargeable fees must not exceed 10% of the principal of the loan
- Total charges such as interest, late interest, and administrative fees must not exceed the principal loan amount.
- The Registry of Moneylenders imposed a maximum limit on the loan amount based on nationality and the borrower’s annual income. If a lender offers more than the legal limit, it is most likely to be an illegal lender.
Step 3: Personal Loan – Apply Online With Relevant Personal Information
A personal loan apply with a moneylender in Singapore is easy. All you need is to apply online with your NRIC information or SingPass login credentials. However, before submitting your application, make sure to meet the following criteria:
- You must be a Singapore Citizen
- You must be at least 18 years of age
- You must have an active bank account in a regulated and licensed financial institution in Singapore
Step 4: Personal Loan Approval Process
Once you’ve submitted the relevant information, the licensed moneylender will take only up to 30 minutes to process and approve your loan application. A loan officer attending to your loan request will be available to verify your loan results in a matter of minutes.
Step 5 – Receive Funds for Approved Personal Loan
Once you’ve received your loan approval, the funds will be disbursed to you in cash on the same day. This can even happen within 30 minutes of loan approval.
The appointed officer in charge of your account will brief you on the available repayment modes. Be sure to make your monthly repayment promptly to avoid late interest fees and late charges.
If you’re looking for a personal loan, reach out to us at UK Credit. UK Credit is a trusted moneylender that is certified by the Registry of Moneylenders, Ministry of Law to offer loans to individuals and businesses. Find out more about our personal loan and apply for one now.