In finance, lending of money by any individual or any business or organization to other individuals, organizations, etc. is known as lending. The person or company who is receiving the money comes under debt and is entitled to pay interests on that specific debt until the loan is fully repaid. Several documents are ensuring the viability of the investment, detailing all the aspects of the loan along with the amount, interest rate, and such. Under this contract, it details the transfer of the loan amoun0t from the lender to the borrower for a certain period, coming along with all the obligations and restrictions. As a provider of the loans, the responsibility of such comes under the various financial institutions such as banks and money lenders.
Moneylenders pose as an essential source of the loan in Singapore. It can sometimes become quite challenging to manage all the expenses in Singapore since it is an expensive city. These expenses can be quite significant such as over expenditure on luxury goods, wedding costs, medical bills, consolidate debts, and such. This has led to the situation that there are a lot of money lenders in Singapore. There are about 154 moneylenders who have been licensed under the law and who can give you money quite fast. In case of requirement of cash, if you wish to get a short term loan, then lending from a money lender can be an excellent option.
Types of Loan
If you wish to make an application for applying for a loan, then at first you should try to understand the type of loan you want or you need, by evaluating your financial knowledge first and then making the kind of decision. At first, you have to understand what type of loan you require, or what you need. Here are some underlying type of loans and their description for you to understand.
- Secured Loan: The secured loan is a specific kind of loan where the borrower keeps some assets of their own as collateral. The mortgage loan is a kind of secured loan usually required by people to purchase any kind of property. Other kinds of secured loans can be mutual loans, shares, bonds, etc. The interest rates for the kinds of secured loans are usually much lower than that of the unsecured loans.
- Unsecured loans: The type of money loans that are not secured against any assets of the borrower. There are ranges of this type of loans available from the financial institutions like personal loans. The interest rates which are usually applied to this type of loan generally depend on the lender and the borrower. In Singapore, these are regulated by the laws. The rates of interest on these types of loans are usually much higher than the secured loans.
- Demand: These are short term loans. The demand loans generally don’t have any fixed dates for the repayments. The demand loans have a floating rate of interest, which can vary based on the contract terms and the lending rate.
- Subsidized: the subsidized loan is the kind of loan where the interest becomes less due to any hidden or less subsidy. About the college loans in context to this, there is no interest associated while the student is in the college.
Based on this, you have to decide what type of loan you want. After deciding on the type of loan, you also should do some research and gain some knowledge about the terms of repayment. In Singapore, nowadays, the moneylenders can offer a loan on both variables as well as fixed repayment terms. Also, in the same aspect, you should also consider applying with the Credit Bureau of Singapore or CBS for getting the credit report. The CBS always charges a fee of minimal $6 while providing you with the credit report within just a few days. Many money lenders don’t care about checking the credit report of the borrower while in certain cases, especially for personal loans, some money lenders will not sanction any loan to you if your credit report is deficient. Thus if you have a bad rating on your credit report, it is better to clean up before making an application for a loan.
Documents required while applying for a loan
As discussed earlier, the personal loans are unsecured. Thus the money lenders always try to make a point of checking the financial standing of every borrower also the financial integrity before approving the loan. There are certain things that the borrower must do to increase the chances of getting approved. Firstly you have to decide on the kind of loan that the borrower desire and you have to check if the borrower is adequately eligible for the said loan. Next, the borrower should refer to the website of Singapore, Ministry of Law, for checking the amount of money that the recipient is allowed to borrow. If the borrower gets cleared on all the above aspects, then there is a list of documents that the borrower should collect and keep ready for successfully applying for the loan. The docs include proof of employment and income, NRIC, the current credit score, and the previous CPF statements, residency proof along with tenancy agreements, employment letter, employment pass, and other bank statements required for foreigners.
Crawfort is one of the most popular money lenders in Singapore. It is one of the most reputable private money lenders. At Crawfort, in Singapore, they try to lead the road to revolutionize the traditional money lending models and make it present with the new era of consumer technology. As one of the most popular Singapore Moneylenders, you can easily get personal loans. The comfortable and flexible here will make it quite easy and efficient in getting a quick and easy loan application process. Even anyone can get fast cash within an hour by using the Quick Payday loan application process. The Singapore money lenders of Crawfort will ensure that everyone gets a quick and efficient loan application processing so that it can be approved as quickly as possible for better convenience.