Taking loans in Singapore (2016 Update)

Taking loans in Singapore

Taking loans in Singapore

While money lending has been wooed by many financial advisors, borrowers have remained adamant about the issue. Many people view moneylenders as cons who are out there to steal from them. Financial advisors have not however backed down despite the strong tide of myths that discourage many people who need loans, especially in Singapore from asking for them. The common beliefs include the notion that one only need to take a loan when faced with a financial crisis. Finance specialists will, however, argue that a loan may save a person from entering the crisis in the first place.

Licensed Moneylenders

Without dismissing the possibilities of loan sharks lurking in the market waiting to prey on a desperate loan seeker, there are also legally licensed moneylenders who provide legal loans. The Singaporean government has in place policies that govern the issuance, collection and charges of loans. This is to protect its citizens from the malicious loansharks and businesses. The moneylenders registry has a list of licensed moneylenders. Anyone can counter check the license numbers of these moneylenders to see if they are legal.

Normally, a licensed moneylender will request for original identification documents. While fraudsters tend to haste over this detail and skip to your Singpass usernames and passwords. You should never give your Singpass to anyone, not even licensed moneylenders. You should always key in your password by yourself.

Secured vs. Unsecured Loans

If you are considering borrowing some money, there are two major classifications of loans, secured and unsecured loans. Secured loans require the issuance of security or collateral to the moneylender. This is so that in case the borrower defaults or is unable to pay, their assets will be use as compensation. This is how the two loans differ from each other. The unsecured loans are the most convenient and much easier to acquire loans. These are smaller loans like personal loans that seldom require any collateral to obtain.

Unsecured loans are easy to get, even if the person has a low credit score. They can acquire this loan without posing much threat to their assets. An unsecured loan is processed quickly since asset valuation is not as rigorous. Zero security requirement makes this loan a very quick financial solution especially for urgent money needs. They however come at a higher interest rate than secured loans. In addition the borrower is limited to a certain amount based on their salary. Furthermore, unsecured loans also have more strict schedules when it comes to repayment.

Summary

Different situations may push a person to take a loan. There are many moneylending institutions these days. It is therefore wise to be keen and ensure the loan you land on will help you. Ensure that it will not turn out to be just a burden without even benefiting you.


Always approach a licensed moneylender if you need money. Never ever borrow from illegal moneylenders AKA loansharks. You get the money quickly but it will also quickly get you into trouble with not only the loansharks but the police as well. Best Credit SG Pte Ltd is a licensed moneylender in Singapore. We have the lowest interest rates you can find in Singapore! 🙂 Drop us a message or call us at +65 6272 5538. Drop by our office for a free consultation @ Blk 372 Bukit Batok Street 31 #01-374 (Level 2) Singapore 650372 

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didn't know there was such a big difference between loans
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