Money lending is considered as a practice of giving cash or supplying goods or other services when the money is returned along with higher interest. Moneylenders can be individuals or companies whose main business is to lend money to the borrowers. Borrowers can be individuals or some organizations seeking for the loan. Singapore Moneylenders should have the proper license to run the business. The approval for the license is given by checking for some important factors, and sum checks are done on their history, such as their previous trading history, criminal records, etc. The license has to be renewed every year, and you have to be the resident of a particular country. There are two categories designed by keeping mind that whether the loan seeker is an individual or an institution.
- Personal loan
These loans can include home loans, car loans, etc. The credit card score of a borrower is very important while seeking for this loan. There are two methods designed for the repayments. The borrower can repay the principal amount monthly along with the imposed interest, or it can be paid at the end of the period, but the repayment will cost more when done at last.
- Commercial loan
These loans are similar to personal loans. The only difference is that the lenders seek credit rating instead of credit score, and these loans also include corporate bonds.
Malpractices in lending
There are two forms of malpractices done while lending process named as
- Predatory lending
- Usury lending
When the lender deceptively convincing borrower to agree with impractical terms and conditions such as a period of higher interest rates are considered as predatory lending malpractices.
When lender imposes different interest rate at a different period without any reason or without mentioning in the contract is considered as usury lending malpractices.
Before borrowing money from any Singapore money lenders
, research must be done. There are some points which should be kept in mind before opting for the loan
- Reading the contract and determining your ability, whether you can follow those terms in the long run of your period.
- The consequences when you fail to follow the terms mentioned in the contract.
- Possible interest rates that can be imposed by the moneylenders.
- Comparing several moneylenders plan for the better offers.
- Identifying the hidden charges.
- Checking the license or the certificate of the moneylender, whether it is proper or not.
- Checking the name of the moneylender if it is mentioned on the Singapore government website or not.
Documents requirement for money approval from Singapore moneylenders
The primary step is to fill the application form provided by the money lending firm like CRAWFORT Singapore and submitting the photocopies of the required documents along with the original for verification purposes. Supporting documents must be submitted to proceed with loan application such as-
- Borrower’s income certificate
- Utility bills
- Income tax statements
If foreigners are seeking for loans, they must show the following documents to moneylenders-
- Tenancy agreement copy
There is a limit decided up to which you can borrow from money lenders. It depends on your annual income, and it is different for permanent residents and foreign residents. If the individual income is less than $10k, then the maximum amount which can be borrowed is $3k for Singapore citizens, and foreigners can borrow $1.5k. If the individual’s total income is between $10k to $20k, then the maximum amount can be borrowed by the Singapore citizen, and the foreigners are $3K. If the individual’s income is more than $20k, the maximum limit can be borrowed up to six-time the monthly income for both Singapore citizens as well as foreigners.
Why choose CRAWFORT Singapore
This is the licensed and legal firm in the business of lending and offers customizable plans for the customers. Their dedication towards the clients and the proper service provided by them has gained immense trust from their clients. Their process of moneylending is easy and convenient. They provide facilities for EKYC, online application, and document submission and support online payment methods. Loan repayments can be made through AXS machines, that means you need not to go to the office for repaying it every time. They are the most secure and private firms in the money lending business. They use state-of-the-art technology for encrypting their servers. These updates are sent to the desired way of communication selected by the customer to their selected time.
The approach towards ethical lending
The very all the information about customer’s requirements, objectives, and financial situation before granting them the loan. They run checks on their history and also seek for the criminal records.
They filter the best-suited loan according to your needs and will provide you all the insights into the chosen plan.
All the certificates for conducting the business legally on Singapore grounds are available, and proper registration has been done with Singapore’s government.
They offer individual legal advisors to the customer who will understand the need of the customer and will help the customer in choosing the appropriate plan according to their needs.
Lending or borrowing money from family members or friends is an unsecured way of loan. Terms and conditions are undefined, and it is very difficult to ask your money back because it conveys the wrong impression on your closed ones. If a loan goes wrong, it might end up spoiling the relations. It is always a good option to borrow money from officials because there are written terms and conditions. If you like to borrow the money, you can straight away take the loan, and if you don’t like the terms of a particular money lender, you can opt for another moneylender according to your needs. You must do the background research of the moneylender you are borrowing the money from. Always go for legal and licensed money lenders. Every licensed moneylender is registered with Singapore’s government, and you must check the name of the particular moneylender in the government list. There may be a high interest rate, but they might give you an extended period or the other way around. It depends on the customer need as these plans are customizable.