Here are some things you have to look out for before entering into a loan contract with a licensed Singaporean moneylender or company. This list will give you insights into making the informed decision, so that you do not find yourself in money lending complications, and incur more debts after settling your loan.
Licensed under the Moneylenders Act
This first step is fundamental and must always be observed. Make sure that any legal moneylender you are patronising in Singapore is licensed under the Ministry of Law’s Registry of Moneylenders and under the Moneylenders Act. It shows that the company is professional, and is registered to provide moneylending services to the public. Remember to do your research to identify if they are licensed first.
So, absolutely avoid any money lending company without this license. There are many legal fast loan money lending companies out there that are licensed, such as Orange Credit, so make sure you do your due diligence.
If you see a Singaporean company or a lender that doesn’t have one, it’s wiser for you to avoid it and, instead, search for companies that are licensed.
Do not borrow from many companies
If you have accumulated a significant amount of debt, you may feel tempted to borrow money from multiple moneylending sources to help your financial situation. While this may seem logical at first, it’s not wise to do that as it can cause you to have even more financial management woes to deal with. The best step to take when you have multiple or significant amounts of debts, is to apply for a consolidation loan with trusted moneylending companies such as Orange Credit. This will enable you to solve your financial debt effectively and with the proper management without creating more debt in the process.
Furthermore, a single moneylending company reduces the paperwork and any commitment headaches that you have to worry about. Everything can be managed easier when you borrow money from just a single moneylender, be it for payday loans or business loans.
Borrow an amount you can pay back
Focus on what you think is the minimum amount of money you could borrow, because, at the end of the day, you need to pay the same amount of money back together with its interest. So, the less money you borrow, the less money that you have to pay back.
Secondly, what would you say is a comfortable amount of money per month or in a lump sum that you can afford to pay back? This is taking into account all of your income, your expenses, the rent and your living cost. So, if you leave a comfortable amount to enable you to pay that loan back, then even if something does come up or you have an unplanned expense, you can still meet those loan repayments and not get into any more difficulties.