Dos’ and Don’ts for money lending in Singapore

Dos’ and Don’ts for money lending in Singapore

Seeking licensed moneylenders in Singapore? Are you going to buy your new home or a new car or willing to set up your new business? Money lending has now become the easiest way of achieving your all dreams at very reasonable interest rates. But you may sometime get in trouble if not take a proper care and proper research before lending money. Sites like Loan Advisor, consolidates and rate the top 10 most reliable moneylenders to make life easier for you so you don’t have to go through the hassle of researching from the list of 160+ licensed moneylenders in Singapore.

Money lending is one of the best ways for fulfilling your desires, but you should need to go through its every aspect before getting involved in the deal. Research the market thoroughly and make a right decision.   Here, in this content, we are going to provide you with some dos’ and don’ts while seeking money lending in Singapore.

Do’s

  • Make a thorough research about the firm, its interest rates, procedures, reputation in the market before going for getting into the deal of money lending.
  • Calculate the amount which you exactly needs for fulfilling your needs, so that you could easily repay it in easy instalments.
  • Go through all the contractual terms and conditions and financial obligations very carefully in order to reduce the chances of getting any fraud.
  • Shop around different moneylenders in the market so as to get most favourable terms.
  • Get a copy of loan contract so as to make it useful as a proof for you it is you need as well your right to get that.
  • Keep all the copies of the instalment repayments and the main copy of the contact in safe hands.
  • Always make your payments be on time in order to reduce the chances of getting any penalties.
  • Get ready for the repayment also if you are not able to make your routine payment on time.
  • Never sign the copy of the agreement without reading it. Read all the clauses very carefully and never get into a deal where you provide the authority to the moneylender for selling your property in case of failed repayments.
  • On the successful granting of the loan; check the principal amount very carefully so that to check whether the money lender is not deducting the extra charges from it. The government of Singapore only has permitted to deduce the 10% of the principal amount.
  • Your name, date of issuing of the loan, signed the receipt, fee receipt and amount of money you are going to borrow should be properly and correctly mentioned in the note of contract.
  • Make sure that you should get a statement of the loan at least once every 6 months.

Don’ts

  • Never sign any note of contract without reading it carefully.
  • Never sign any deal of money lending in hush-hush.
  • Never ever trust the money lenders who make you call, and send money or any other personal references for money lending.
  • Never sign an incomplete copy of the note of the contract as there are the chances of adding clauses which may harm you financially.

Never, become a guarantor for a person whom you don’t know on a personal basis or is not capable of refunding money.