Applying for a loan? (Updated: 4 May 2019)

In today’s world of economic uncertainties, it is very difficult to make ends meet, let alone save for a rainy day.
So what do you do when faced with unforeseen expenses like a medical emergency, car breakdown, urgent home repairs?
Especially when you are staying in Singapore, anything can happen.

Imagine if you are one of staff who was retrenched from IBM at Singapore Tampines, will you take a loan before going back to your country?
Or apply for a loan before losing the jobs who compensate you 2 weeks per year basis on MOM Singapore?

Interesting Statistics About Singapore

As you know Singapore is one of the most expensive city in the world.
Singapore sell the most expensive car in the world that tag with a COE (Certificate of Entitlement) that last for 10 years.
Singapore, Hong Kong, and Paris are the most expensive cities for expatriates to live in
(https://www.straitstimes.com/singapore/singapore-hong-kong-and-paris-are-the-most-expensive-cities-to-live-in – Date 19 March 2019)

Singapore is the 2nd-most expensive city to buy a house in 2018, However, if you know how to play well in this game, this is one of many investors in Singapore do for a passive income.
(https://sg.news.yahoo.com/singapore-2nd-expensive-city-buy-house-2018-cbre-021555350.html – Date 12 April 2019)

Singapore ranked 7th Safest Countries In The World 2019 according to population. It can be one of the world safest country in the world base it population and area space provided. You definitely have to pay a price for security.
(http://worldpopulationreview.com/countries/safest-countries-in-the-world/)

These are some of the price you pay for a place to live in peace, safe and harmony for the rest of your lifetime. You might not be happy most of the time, but you will definitely feel the stress is not coming from insecurity of the society.
I’m sure everyone enjoy the stay in Singapore, you will enjoy, work and walk freely on the street in the middle of the night without any fear.

Singapore ranked safest country in the world, above Japan: Survey
(https://www.asiaone.com/singapore/singapore-ranked-safest-country-world-above-japan-survey – 24 May 2018)

If you are born and grown up in Singapore

It’s definitely a blessing if you are born and grow in Singapore. Government did a very good jobs in providing shelters, jobs, education and many others to ensure Singaporeans have a  safe and peaceful living hood. However, if you can blend yourself into Singapore society, you will find some obstacles here and there, even if you are in some financial difficulties.

Borrowing Money in Singapore

Yes, Your are right, you are not suffer from any insomnia or sickness now because borrowing money or getting a loan was never that easy.
The perception of today world has changed. We are talking about fintech, getting a loan at a click, online credit bureau and best still, government is supporting all these information to your lender from Myinfo data in order to prevent you from exceeding borrowing, this helps keep you safe from overwhelming debts.

Today, borrowing money is not considered a taboo. You may be in a deep financial issue and there are various ways to dig yourself out of the financial crisis in one of these comfortable ways.

What is Secured Loans?

A Secured loan is loan that requires borrowers to offer their assets or property as collateral.
This help reduces the risk for lenders and therefore they will charge a lower interest rate.
Unsecured loans, on the other hand, do not require collateral and they carry higher rates of interest.

We all know that there are no free lunches in this world but there are always affordable lunches. Loans that use your assets in the form of a house or a car or your stock certificates as collateral. This basically means that you get a cheap secured loans in Singapore against the equity of your asset and if you default in paying the secured loans, the lender can liquidate your asset to extract his money.

Applying for a Secured loan with Bad Credit

Having a bad credit history can be like carrying a backpack full of worries. With big data information and any analysis used by licensed money lender.
You credit history, the assets you own, the number of different loans you have from car loans, house mortgage, personal loan and credit cards will be reveal for application upon your agreement. With this technology, your application may be even reject before it reaches the money lender for review if you failed to meet the authority minimum criteria.

You will face some elevated interest rates on credit and loans, but acquiring any type of credit can seem like an unbearable obstacle to overcome.
Some people with bad credit think that all odds are against them when trying to apply for credit or loans. However licensed money lenders in Singapore are those who are willing to take the plunge in risky waters for you provided that you pay them back in the end. Licensed money lenders are well like by applicants who are rejected by banks.

Secured Loans

As mentioned in the section above, Secured loans use personal property to secure the repayment of a loan. This means that the possibilities of getting a secured loan with bad credit are much higher than an unsecured loan. Their characteristics are that of being much more common and have lower interest rates. The interest rate that accompanies a secured loan depends on the value of the collateral being used and its place should the lender have to sell it eventually.

Collateral

There are a few items can be used as collateral for a secured loan. But those that have a higher monetary value then the loan amount itself tend to be the best collateral. Some items that are purchased with loans serve as their own collateral as in the case with mortgage and automotive loans. Non-material collateral such as capital built up in real estate often fulfils the duties for better collateral for a secured loan than any other item.

Shopping for a Loan

It’s just as important to look around for a secured loan as it is to get a second opinion from a doctor.
When shopping around for a secured loan, the following suggestions should never be overlooked.

  1. Take the time to investigate different banks, finance companies and licensed money lenders in your area who offer the best interest rates or loans.
  2. Till now 1st April 2019, there are no Online lenders in Singapore, the Authority require all borrowers and lenders to meet up face to face for verification before giving out loan. For all others that they mentioned that they are able to give out loans online without face to face verification are all illegal moneylending.
  3. Once you have all the information, make comparisons to see which loan suits you the best.

Applying for Your Loan

Once you’ve found your loan, the application must be submitted. Even though a great looking shoe doesn’t always secure a perfect fit,
its essential to have other proposals at hand. If all fails and you still have not found your match, it may be time to expand your horizons & undertake other options to facilitate the quest for the best loan that suits your needs. You can always try out the loan application platform here.

Below are 10 tips you need to consider before applying for a personal loan.

  1. In order to qualify for a personal loan you need to be at least 21 years old and have a job on a full-time basis.
  2. You need to be receiving a steady income on weekly, bi weekly or monthly basis.
  3. You need to have a savings account.
  4. When you apply for a personal loan, you will need to have proof of these items to convince the money lender you are a trustworthy risk and you will be able to pay back your loan.
  5. When choosing a personal loan company be sure it is registered and licensed and in good standing with the authority with no outstanding or unresolved complaints. Check out the licensed money lender review here.
  6. You need to understand the terms of the personal loan you are applying for.
  7. When selecting a licensed money lender, visit their website and clarify the fees involved and the interest rate being charged.
  8. You need to know the penalties if you do not pay the loan back on time.
  9. You need to read and understand the fine print of your personal loan.
  10. If you can not easy find the above information on the money lenders website then don’t use them.

There are plenty of licensed money lender companies that are completely legitimate but you need to protect yourself by reading the fine print.

  • One rule of thumb I use is if a company is advertising on the internet with their mobile phone online (8xxx xxxx or 9xxx xxxx) they are most likely illegal money lenders because the authority do not allow licensed money lender to use mobile phone, all licensed money lender are to submit their landline to the authority for approval.
  • If a company is asking for Identification aka NRIC, Singpass login, these are also illegal money lenders aka loan shark. Do not apply a loan from these website.You do not need to submit any NRIC online for a loan application.

As you consider the above tips keep in mind you need to be able to repay your personal loan and still cover next weeks bills. Personal loans at times make perfect sense and you need to use them wisely to help your short term cash flow problems.

Sometime it is wiser to leave your mortgage alone and use the flexibility of a secured loans or unsecured loans, especially if the interest rate is only a title higher than your mortgage rate.

Finally a Secured Loans can be completed in less than twenty days. Refinance normally requires that you pay certain fees, such as a discharge fee, a valuation fee, a title insurance fee or an administration fee. You can take out the payment protection against specific events, such as unemployment, sickness or disability through payment protection insurance.

TIPS that Helps

You should also believe buying enough life insurance that in the event of the death of the household’s main bread winner, the loan or mortgage will be paid off by the insurance company. When you are applying for a loan it is normal that you will be asked to consent to a search at a credit reference agency.

In secured loans the proposal is to avoid fraud and for the lender to assess your credit worthiness. Some factors may have an adverse effect on your application. Bankruptcy or individual voluntary arrangement, low income or self-clarification of income, mortgage or rental arrears, and frequent job changes, frequent address changes, high indebtedness, court judgments. But even with poor credit record, you had a good chance of obtaining a secured Loans providing you have plenty of equity in your property.