Applying for an instant cash loan with fast loan approval in Singapore can be beneficial for certain needs and situations, such as helping ends meet and surviving through the current COVID-19 pandemic. Regardless of what a borrower’s reason may be, it is essential to note that although the process of taking out a personal loan is straightforward, there are several things to keep in mind to ensure your loan gets approved and that you get the most out of it.
Whether you are a new borrower or an experienced one, it would be best to familiarise yourself with the following mistakes and be mindful to avoid them when applying for your next loan.
1. Neglecting to check if a money lender is licensed
The first and most crucial step when taking out a personal loan is to check if you are dealing with a legal money lender. By choosing to do business with a licensed lending agency, you can rest assured that you will not get scammed or taken advantage of since they adhere to the terms and conditions set by the Ministry of Law Singapore. You can check by simply visiting the government agency’s website online and looking through their list of licensed money lenders.
Apart from being licensed, another key factor to determine is the money lender’s years of operation. Those that have been in business for a long time are generally reputable and offer quality services that have kept them alive thus far. Moreover, another benefit of choosing legal money lenders is their flexible loan terms, low-interest rates, and capacity to help build your credit score, provided you are diligent with your payments.
2. Skimming through the conditions and stipulations
Once presented with the loan contract, it is good to always make sure that you take your time reading through every line in their terms and conditions as well as the included fine print. Making sure you understand what you are getting into allows for better decision making and lets you know if the loan offer is truly the best for your needs.
3. Forgetting to account for additional costs
Applying for a personal loan almost always comes with extra fees, which can vary for every licensed money lender. These include one-time admin fees separate from interest rates and charges if you are late for the repayment. Reading the terms and conditions is the best way to learn all these extra costs and what they are for.
4. Going straight for the first offer
Though you may need the money urgently, it would be wise to take your time to shop around when looking to get a loan before applying for one. Being patient allows you to compile a greater list of choices to choose from. You may also stumble upon a licensed money lender offering a promotion like lower interest rates for a limited time, hence providing you with a better offer. Furthermore, asking around and not going for the first offer means money lenders are far less likely to take advantage of your urgency.
5. Not asking enough questions
Reading through the terms and conditions goes hand in hand with asking plenty of questions. For new borrowers, especially, it would be great to be more inquisitive and ask as many questions as possible to learn more about the things you do not fully understand yet and clarify conditions you are unclear or unfamiliar with.
6. Failing to come up with a repayment plan
Even with a stable income or confidence in one’s ability to repay a loan, it is essential to have a repayment plan that guarantees you can make complete and timely payments until the end of your loan term. Keep in mind that you still have other financial obligations to tend to, such as bills and personal expenses, and something unexpected could always come up to disrupt your budget. Thus, this necessitates a feasible repayment plan which you can follow.
7. Not negotiating
Most borrowers do not know that they have room to negotiate with their lenders and not simply accept the terms presented to them by their lenders. You may do so by explaining your financial status to your licensed money lender so they can develop a loan deal that better suits your needs. Essentially, negotiating helps prevent you from being constrained financially.
There is always a first time for everything, and many people may have yet to take out a personal loan in their lifetime. When the time comes when you might need to get a loan, there is always a chance that you may, unfortunately, make mistakes that could potentially ruin your loaning experience. Hopefully, with the help of the contents listed above, new borrowers can be more prepared when taking out their first loan.
Should you seek a licensed money lender or simply want your questions on personal loans answered, look no further than Orange Credit! We are a reputable lender offering various quick, no-hassle, and easy loans in Singapore with fast loan approval. Contact us today for more information.