Money, money, money. It’s a huge part of what makes adulting so hard. Finding a well-paying job, managing your finances, and remaining debt-free are things that most adults struggle with.
When major life events such as marriage and starting a family happens, or when emergencies occur, most people find themselves cash-strapped. In times like these, besides turning to banks and financial institutions, a licensed money lender in Singapore can be your next best bet.
Here are four common situations where you will need to find a money lender.
1. Getting out of credit card debt
Getting out of a high-interest credit card debt is a common first-world problem, but how does a money lender solve this issue for you? Well, depending on the amount of debt you owe, most licensed money lenders in Singapore would be able to offer you personal loans at lower interest rates to help pay off your credit card debt.
Singapore’s Ministry of Law has set a maximum interest rate that lenders can charge. Currently, the maximum rate that lenders can impose on their customers is 4% a month. This rate stands for all income levels and both secured and unsecured personal loans. Further, the total charges imposed by the licensed money lender – this includes interest, administrative fees, late fees, late interest, etc. – must not exceed the principal loan amount.
Never underestimate a good licensed money lender’s interest rate as it can help you save so much more in the long run. Be disciplined and use a personal loan to clear your credit card bills to stave off higher interest rates.
2. Securing a lucrative opportunity
Time is of the essence when a lucrative opportunity comes your way. For instance, if you come across an attractive investment opportunity that requires you to make a lump sum payment to lock in your profits. Successful investors understand the power of compounding interest and know that even a small sum, used at the right time and circumstances, can make a big difference in investments.
In such situations, having a list of licensed money lenders in Singapore at your fingertips can help you make more informed decisions in the nick of time. It also helps that many licensed money lenders are known for their seamless document verification and loan approval processes. As long as you meet the requirements and legally fill in the required information, you can expect your loan in a day or less.
3. Dealing with emergencies
Emergencies strike when we least expect them. For example, a medical emergency could occur and you might not have enough savings on hand to tackle it. If you’re having cash flow issues, you might not be able to pay your insurance bills on time as well. In such situations, to pay for an emergency medical expense or to prevent your insurance from lapsing, a licensed money lender can offer you a personal loan to help you get through a financially strenuous period.
Furthermore, when going through a rough patch financially, the last thing that you need is additional stress that could come if you decide to borrow from a loan shark (harassment and threats are their flagship languages when collecting their dues). The best licensed money lenders in Singapore adhere to the Ministry of Law’s lending guidelines. These guidelines forbid lenders/debt collectors from using any form of violence to recover the debt. This includes threats, insults, or physical violence.
4. Other personal reasons
Some people may need a licensed money lender for loans to fund their business or for further studies and skills upgrades. Licensed lenders offer various loan packages with different terms, such as:
Regardless of your situation, a good licensed money lender could propose solutions to meet your financial needs.
Before taking out a loan, read up on reliable reviews or find out from your friends and relatives if they have any licensed money lenders to recommend. You can find a list of licensed money lenders on the Ministry of Law’s website. All of them – as stipulated by the law – have physical offices where you can have an in-person consultation. Look for licensed money lenders who consistently have good reviews.
Cash Direct Pte Ltd is a licensed money lender in Singapore that aims to help you through any financial difficulty. We provide fast and reliable financial assistance to individuals and businesses and offer an industry-standard licensed money lender interest rate capped at 4% per month. If you need an urgent loan, speak to our financial consultants or apply for a loan here with us now.
About the Author
Armed with years of experience crafting content for brands and companies across industries, Clio is ever-passionate about putting out top-notch, well-researched personal finance pieces that seek to educate.
