When you are looking to borrow money in Singapore, besides turning to banks, credit cards, or family and friends, a licensed moneylender is also a popular option. However, it can be daunting for people who have not taken out loans from money borrowers before and may not know how to borrow safely from a licensed moneylender. Here are some tips to look out for to help you borrow money safely from a licensed moneylender in Singapore.

Tip 1: Find a licensed moneylender in Singapore

Before approaching money borrowers, the most important thing you have to do is to make sure that you are dealing with a licensed moneylender. All you have to do is visit the Ministry of Law’s website and verify the moneylender’s website against this list. Registered money borrowers have to abide by regulations set forth by the Ministry of Law that protect the borrower. Safeguard yourself by verifying your preferred list of money borrowers on the Ministry of Law’s website. If you are unsure, you can always refer to the FAQ list here or contact the Ministry of Law for inquiries. 

Tip 2: Identify the right loans you need to suit your budget

When you apply for a loan, always determine the purpose and need for it. Make a plan of how many loans you need and when you need it. Personal loans are a flexible and accessible option ideal for people looking to fund various purposes such as paying off high-interest credit card bills, medical expenses, home renovation, and so on. Identifying the right loans can help you stay objective and use them wisely to pay off your existing debts or to bridge a temporary financial gap. 

On top of that, you will need to calculate your monthly budget to see what you can actually afford. While personal loans are packaged with low-interest rates, your budget will help you determine how many loans you can borrow and if you are able to repay them on time within your means. The smaller your loan and the shorter your repayment period, the less interest you have to pay. Understanding this simple tip can help you avoid taking on a larger loan and staying in debt for a longer period of time.

 

Tip 3: What a licensed moneylender must inform you before granting a loan

Before approving loans, the moneylender is required to inform the borrower in writing, the full terms of the loan, including:

  • Nominal interest rate
  • Late interest charges
  • Other permitted fees
  • Instalment details especially in cases where there is a fixed repayment period agreed between both parties, also known as a term loan

Tip 4: Choose a licensed moneylender you can trust

Now that you know the type of loans you need and the budget you have, it is time to go shopping for quotes from different money borrowers. One of the most important things you should look out for is the interest rate. Licensed moneylenders in Singapore are only allowed to charge a nominal interest rate of 4% per month. You should use this as a guide when discussing loan terms with a licensed moneylender

Galaxy Credit and Investments Pte Ltd is a licensed moneylender in Ang Mo Kio that provides a one-stop money lending solution for our customers. We understand the needs of our consumers and are committed to providing excellent loan services to suit every need. We offer one of the best and affordable loans in Singapore. 

To find out more about a safe and reliable way to borrow money in Singapore, contact our team of friendly and experienced loan officers here today.