A Guide On Using Debt Consolidation Plans When You Have A Lot Of Loans

Taking out a lot of loans have their own advantages. You can have varying interest rates, and you can take out a loan even if you have already taken one from another loan company. However, there can be some problems involved in having a lot of loans. Your monthly payment schedules can overlap with each other, leaving you with no space to spend money for your needs. Additionally, taking care of the paperwork for multiple loans can be a nightmare, as well as keeping track of which loan payments are already due. Problems involved with having a lot of debts can be solved by debt consolidation, which will be discussed in this article.

The two types of debt consolidation loans

 

  • Secured loans

A secured loan is a loan that is supported by your asset that will act as the security for the loan that you take. Because of the collateral, secured loans normally have low-interest rates and are easier to obtain.

 

  • Unsecured loans

An unsecured loan is a loan that has no collateral, however, they are harder to qualify for. Additionally, unsecured loans generally have higher interests and lower amounts provided compared to secured loans.

Is it a good idea to consolidate your debt?

Debt relief has the ability to modify the conditions or quantity of your debt, allowing you to recover faster from your financial troubles. However, debt consolidation is not a magic solution that can work for everyone. There are some consequences that you have to be aware of before trying a debt consolidation plan to see if it is the right solution for your problems.

   

 

What is the difference between debt relief and debt consolidation

Debt relief could include removing the financial debt completely by declaring bankruptcy. You can also have your interest rate adjusted, or modify your payment schedule so that you will be able to pay all of your loans on time. Additionally, you can even persuade your creditors to allow you to pay below the amount that you still have to pay.

On the other hand, debt consolidation involves combining all of the loans in your name and taking out a single loan to pay all of your existing loans. By doing so, you can take advantage of just having a single loan to pay every due date, reduced interest rates, and worrying about only a single loan as opposed to taking care of multiple loans at a time.

How does debt consolidation affect my credit score?

This is a frequent question by those seeking to consolidate their debts. The answer to this is dependent on the actions you do after consolidating.

Your credit score will have the chance to improve if you are paying the monthly due of your consolidation loan in a timely manner. Always remember that settling payments for debts have the best positive impact on your credit rating. Additionally, you will be in the position to get rid of your outstanding balances or decrease them to below 30 percent of your total borrowing limit. The proportion of credit employed to the total of credits available for you is called credit utilization, which provides a significant impact on your credit rating.

By debt consolidation, you will be capable of broadening your loan profile, allowing you to increase your credit score by having various types of credit in your profile. When consolidating debt, be sure to improve your spending practices and making changes to your lifestyle to avoid taking more debts.

Meanwhile, your credit score will have the chance to go down if you keep using your credit card after setting your outstanding balances. Any increase you got from lowering your credit utilization will disappear easily once your balances increase once again.

Your credit score will also suffer if you are making late payments after consolidating your loan. Applying for loans that you are not qualified for can also decrease your credit score, as well as applying to many loans in a short period of time.

   

Which bank is best for debt consolidation?

After making your mind regarding the usage of debt consolidation, the next step that you must do is to determine the best bank to consolidate your loans.

One step to determine if a bank is good for a debt consolidation loan is if they offer a reasonable interest rate. The normal interest rates that you can expect to be charged on loans for debt consolidations are generally within the 8% to 28% range. If the bank is offering a higher interest rate than that, or if the bank is offering a higher interest compared to the loans you are seeking to consolidate, it is probably a better idea to switch banks that you want to use.

Can I use my credit card after debt consolidation?

To answer this question, yes, you can still use your credit card after consolidating your debt. However, if you have to use your credit card, be sure to be mindful about it. After you have combined your credit balances, you must cease from using them except for emergencies. It is possible to secure or hide them in a safe place, or you can even physically cut the cards if you easily give in to temptations. You must make sure that the balances on your credit accounts remain zero.

Once you get yourself a debt consolidation loan, a good way to ensure all those credit cards continue to have zero balances would be to connect those loans into a bigger plan to become free of debt and make improvements to your financial situation. In case you firmly believe that you have problems in managing your spending, or usually do not think you make use of your credit properly, you can try to look for a reliable financial consultant who will be able to assist and help you in managing your finances.

Are you interested in taking out a debt consolidation plan to solve your financial problems? Taking out a loan from 356 Credit may be the answer to your problems. Visit their website now at https://www.365credit.com.sg/ for more information.

How Much Personal Loan Can I Get in Singapore

Getting a personal loan isn’t as easy as asking for money. You need to go through a complex process to get things done, not to mention that you need to pass all the needed requirements. But that doesn’t mean getting one is hard.

In fact, it’s all a matter of having the right resources and being in the right company. So, how much money can you get from personal loans Singapore? Well, the loan amount depends on a variety of factors. Some of which are your income, credit rating, and overall background.

What is the best money lender for personal loan?

365 Credit

365 Credit Solutions is one of Singapore’s leading and premier personal loan providers because of its established credibility and experience in the industry. The company is accredited and licensed by the Singaporean Registry of Moneylenders.

The company specializes in offering different kinds of loan such as, personal loan, business loan, and even payday loan and bridging personal loan, both to Singaporeans and overseas clients alike. This makes it one of the best credit cards and loan of choice of many looking to get a loan,  along with debt consolidation plan loan.

 Financial Institution Singapore  

It also boasts low interest rates and it doesn’t need you to present many documents. This makes the loan application process simpler, unlike banks where you have to wait for days to get your loan approved.

365 Credit also has its own credit cards which they call as the OCBC 365, which can be used to avail a loan. It is an all-around cashback credit cards for those who spend money on everyday items. It even has a bonus cash feature where you can earn from 3% up to a maximum of 6% on grocery, online shopping, dining, and gasoline bills.

 

Compare interest rates.

There are a lot of loan providers in the market and you can easily get confused in all of it. This is why you need to be careful in choosing the right loan for you. Take 365 Credit for example. It is one of the leading companies providing personal loans in Singapore because of its low-interest loan rates and appealing personal loan tenure deals. This makes it a great choice for local and overseas clients, instead of getting credit cards as credit cards get complicated loan tenure such as 60 months duration, especially if you have many.

How 365 Credit works?

365 Credit works by no longer splitting dining rebate tiers by weekdays and weekends with a rate of just 6%. It even covers food delivery apps such as FoodPanda and Deliveroo. A 3% loan rate on groceries is also included in its terms conditions.

This is one of the many reasons why it is one of the most sought-after credit cards by most Singaporeans. Meanwhile, bonus cash backs for loan include online travel bookings, electric bills, as well as public transport, and each still having a 3% rate, according to a review.

Take note, though, that you can get extra loan rebates on gasoline spent from your personal car and not from public commute. This is great if you need to invest loan funds for your investment scheme.

Can you get a personal loan with 550 credit score?

Yes, you can. But you’ll have a harder time than if your credit score is higher than 550. Most Singapore personal loans prioritize applicants who have credit rating of 600 and above. While there are some accepting a minimum of a 550 credit rating, expect that you’re going to have to present more documents such as income statements to prove that you can repay the amount. There are also times when you get a shorter loan tenure. Don’t worry if your salary is only S$30,000 because you can still get one, though.

 Loan Agency Singapore (Main) 

Which moneylender in Singapore has the lowest interest rate?

365 Credit Solutions

365 Credit Solutions offers one of the lowest interest rates in Singapore. It has an effective interest rate EIR of 3.5%, which actually is the lowest rate in the current market.

Though there’s a 1% processing fee for your initial personal loan application, it isn’t really that bad knowing that you’re free from paying any fee for your next personal loan application.  It’s also very similar with a DBS personal loan and OCBC personal loan.

Also review your balance first before availing to avoid issues. Along with the loan, you can also avail its credit card. It’s a great choice of entry-level cardholders or those that have minimum annual income of S$30,000.

Take note, though, that the minimum OCBC expenditure is $800, with no maximum amount stated. Not hitting the $800 mark means that you’re only getting a minuscule OCBC 0.3% personal loan rate, which is a bit similar to a DBS personal loan.

This is a great card to use on many different things, except for retail shopping and leisure. It’s because restaurants are the only qualified venue to get a cashback. Pubs, bars, and amusement parks aren’t included.

If you are looking for a credible and established professional money lending service in Singapore, then 365 Credit should be your number one choice. We offer the lowest interest rates for personal loan in the market. We are also licensed under the Registry of Moneylenders in Singapore, assuring you that you are in safe hands. Contact us now and learn more about our appealing offerings.

How to Get a Personal Loan with Bad Credit in Singapore?

We’re living in a world run by money, and almost everything that we do and need needs money for it to go through properly. But what if we run short of it? What to do? Well, good thing there are personal loans.

These help fund expenses and consolidate your existing debts without using any card. There are even some unsecured loans where you don’t have to turn your car or home as collateral.

Unfortunately, it’s hard to get a personal loan if you’ve got bad loan credit because this means you’re most likely to not be capable of repaying your debt on time. But that doesn’t mean there’s no chance of getting a successful application. It’s just that you have fewer loan choices and the interest rates will also be higher.

What does bad credit mean?

Having bad loan credit refers to your personal FICO score. FICO is a scoring model that considers bad loan credit to those being below the rating of 579. Your main goal is to have a higher loan credit rating so that it’ll be easier for a customer to avail a loan. Having a high FICO score means that you’re more capable of paying off the full loan payment on or before the deadline.

Can you get a personal loan with a credit score of 550 and 500?

The FICO Score 8 rating model is the rating standard that is followed by most (if not all) loan providers and credit cards. It features a scale rating of 300 to 850, with 300 being the lowest possible rating.

This might put a 500 to 550 score to be somewhere in the middle. But it doesn’t work that way because 700 is the average FICO Score. And all that’s under 580 is considered as bad credit loans. This makes it harder for you to avail a personal loan and get new credit. But that doesn’t mean getting one is impossible.

In fact, there are a number of loan providers that cater to those having credit ratings of 500 to 550. Learn the requirements and PTE first so that you know the payments to make. Requirements and PTE are important for a customer like you who loans bad credit. The usual credit cards and loans that accept credit ratings of 500 to 550 are mostly unsecured credit cards that have high APR and low credit limits.

Financial Institution Singapore 

Will banks give loans with bad credit?

Apply for a minimum amount.

Yes, banks can consider giving you a loan if you have bad credit as long as you apply for a small amount. Low scores usually dictate inability to repay debt. Thus, borrowing a small amount lowers down the risk.

You can also try getting a smaller personal loan first. And then pay back with the debt in as early as possible, and then apply for a bigger loan. This helps improve your credit scores.

Settle outstanding debts.

Settle your current debts and don’t get a loan application from lenders if you still have an outstanding balance. This is especially true if you’re going to borrow a big amount fast and you have poor credit. Finish off your payment first.

There are also some banks that consider restructuring your current balance. This means that they can lower your interest rate fast so that you can pay your outstanding balance and apply for a bigger loan.

OCBC 365 Loans

The OCBC 365 Credit is a great choice if you’re going to apply for a loan and you’ve got bad credit score and credit history. It’s one of the best personal loan in Singapore, as well as a credible licensed moneylender. It’s very tolerable even if you have bad credit score because it’s designed to take care of your everyday lifestyle needs and expenses. You’ll find it appealing with its many offer benefits, deals, and incentives. It also offer fast loans for bad credit. For sure, it’s what you need if you’re looking for bad credit loans. It also is certified with a copyright 2019.

Which bank is the easiest to get a personal loan?

There are a number of banks where you can get a personal loan easily. But it’s a different story if you’ve got bad rating because you have to go through a complicated process to get accepted.

That’s where licensed moneylending services come in, with 365 Credit Solutions being one of the best ones. You can even get a personal loan with an uninsured amount of $10,000 to $50,000 and repay it in six months or depending on your terms. This is your best choice if you want to loan bad credit.

You can also avail of the OCBC 365 Solution loan products which maximizes rebates on daily expenditures without any annual fee. You can also earn up to 6% or even more with online food deliveries and dining bills. You can also get up to 3% for transport, groceries, and travel bookings, and up to a massive 23% for fuel savings.

Credit Counselling Service Singapore 

Why choose OCBC 365 Credit Solutions?

365 Credit Solutions is one of the best choices if you’re looking for a personal loan in Singapore that has a low interest rate. It’s great for personal loans bad credit because you don’t have to worry about getting huge interests. It even has an interest rate of just around 3.5%, which is the lowest one in the market.

There is, however, a small 1% processing fee for first time applicants. But that isn’t an issue because you’re no longer going to have any problem paying any fee the next time you apply for another. This is a huge benefit to clients because it’s inexpensive and doesn’t put much hassle on you.

Furthermore, 365 Credit Solutions is also one of the most credible moneylenders in the industry because they have been credited by the Singaporean Registry of Moneylenders.

How Much is the Interest on Personal Loans in Singapore?

The interest rate of personal loans varies depending on many factors relating to the borrower. Some of these are your loan amount, annual income, as well as the loan duration.

These factors help licensed money lenders measure your capability of repaying back the debt on or before the deadline. This has a huge effect on the loan. The less risky the loan is, the lower the interest rate becomes. This makes it easier for the borrower to repay the loan.

The usual interest rate of banks is around 7% annually. This means that if you borrow S$20,000 with an interest rate of 7% and you’ll repay it within 3 years, then you’re going to incur an interest rate of S$1,400 annually. Though interest rates vary, it usually comes around this figure.

How much interest do money lenders charge?

Unlicensed moneylenders usually charge higher interest rates. Though the government created a 4% maximum cap on monthly interest rates, licensed money lenders still usually double their interest rates compared to banks, sometimes even going four to five times higher than from banks.

An example would be borrowing S$500 with an interest of S$20 monthly. That might not be that much if you pay it within a month. But that value will cost you hundreds, if not thousands of dollars more in interests and administrative fee if you pay late.

However, that’s not the case for all money lenders in Singapore. Take for example 365 Credit Solutions, which is considered one of the best licensed money lenders in Singapore. They offer low rates depending on the background of the loan applicant. Their loans can even go head to head against banks.

 Loan Agency Singapore (Main) 

Knowing More About Licensed Moneylenders

Licensed money lenders target clients who were rejected by banks, which is why they make sure that they cater to their needs. Banks make sure that loan applicants have a low-risk profile, unlike lenders that even approve the riskiest of background.

Banks usually don’t approve loan applications from people who have a salary less than S$20,000. Meanwhile, moneylenders are pretty good with people who are on this salary bracket. They don’t even put much emphasis on their credit history. They also don’t need to get strict supervision from the ministry of law as the ministry of law only focuses on banks.

Another defining characteristic of moneylenders is that they don’t usually approve huge loans, unlike banks. The usual maximum loan they can approve is around S$1,500 for clients who have salaries of less than S$20,000. Meanwhile, banks can lend up to 2x to 6x your monthly salary as long as you have good background and credit rating.

Review and assess your current situation first before filing an application. You don’t want to be paying heavy fines and interest rates. Moneylenders can, however, take care of these especially if they have a copyright 2019.

What is the interest rate for private loans?

Private loans from PTE companies have high interest rates. The usual ones start at around 4% and can go up to 7.5% and even higher. This makes the cost of borrowing money more expensive for PTE firms. However, there are also loans that have much lower interest rate, but this is reserved for those who have annual salaries of S$50,000 and above, as well as those having good credit rating.

Private money lenders or PTE also have terms and conditions that charge higher interest rates compared to banks. It’s because they lend funds to high-risk clients. This means that there’s a chance that the PTE won’t get paid back. Private loan sharks also usually borrow money from other investors and even possibly banks that charge higher interest rates.

All these increase the costs of a PTE because they have to pay back the funds they borrowed from the bank and other private investors.

Thus, the possibility of not getting back the lent money makes up for the higher-than-average interest rates of a PTE lender.

 Financial Institution Singapore  

What is the legal interest rate?

The legal interest rate varies, but it currently is around 4% to 6% annually. This, however, isn’t strictly followed especially by a PTE because of the varying circumstances depending on the borrower’s credit rating and background.

Which moneylender is the best in Singapore?

There are a number of banks that offer attractive loans for borrowers. However, it’s best to go for a licensed moneylender in Singapore. One of the best and credible choices is 365 Credit Solutions.

We are a renowned moneylender in Singapore since 2010 and is even accredited by the Singaporean Registry of Moneylenders.

Clients can benefit from us because we have different kinds of loans such as bridging, personal, business, and foreigner loans, both for Singaporeans and foreigners alike. This makes it easier for you to choose the kind of loan you need to solve your needs.

Settling for a loan application is also easier with us because our process is simplified and we don’t require much and unnecessary documents unlike other PTE firms. You will benefit greatly from this because you don’t have to spend lots of time waiting for your loan to be approved.

Clients don’t have to worry about their funds when you’re with us because we do our best to have your loan applications approved as long as you conform to the requirements. Payments are done fast and can be attested by the many reviews found in the internet about our company.

Our clients can also benefit from our transparency because there are also no hidden costs. Loan and debt processing take only one hour and the cash is given to you directly. There’s no more need for annoying phone calls or overly complicated rules and regulations with 365 Credit. Simply send the payment via bank transfer and you’re good to go.

Where to Get Personal Loan in Singapore

How Much Personal Loan Can I Get in Singapore

Getting a personal loan isn’t as easy as asking for money. You need to go through a complex process to get things done, not to mention that you need to pass all the needed requirements. But that doesn’t mean getting one is hard.

In fact, it’s all a matter of having the right resources and being in the right company. So, how much money can you get from personal loans Singapore? Well, the loan amount depends on a variety of factors. Some of which are your income, credit rating, and overall background.

What are the best Singapore banks for personal loan?

 Loan Agency Singapore  

1. DBS Bank

DBS bank’s DBS POSB personal loan base your account either on your personal credit line for your loan or your credit cards. What’s great about this bank is that you can easily apply a loan using their internet banking feature if you’re on a DBS POSB plan. Loan processing is also fast and the funds are credited directly to your loan account.

2. Citibank

Citibank offers one of the best Singapore personal loan because of its low interest rates. You also don’t have to pay for loan processing fees.

If you’re one of those who need money ASAP, then a Citibank loan is for you. You can even just wait for the personal loan Singapore processing to finish as it only takes around an hour. Loan funds are deposited the next day for Citibank loan accounts, and up to five working days for other bank loan accounts. It’s also a bit similar with the DBS POSB loan conditions.

Compare interest rates.

There are a lot of loan providers in the market and you can easily get confused in all of it. This is why you need to be careful in choosing the right loan for you. Take 365 Credit for example. It is one of the leading companies providing personal loans in Singapore because of its low-interest loan rates and appealing personal loan tenure deals. This makes it a great choice for local and overseas clients, instead of getting credit cards as credit cards get complicated loan tenure such as 60 months duration, especially if you have many.

What is the best place to get a personal loan?

365 Credit

365 Credit Solutions is one of Singapore’s leading and premier personal loan providers because of its established credibility and experience in the industry. The company is accredited and licensed by the Singaporean Registry of Moneylenders.

The company specializes in offering different kinds of loan such as, personal loan, business loan, and even payday loan and bridging personal loan, both to Singaporeans and overseas clients alike. This makes it one of the best credit cards and loan of choice of many looking to get a loan, along with debt consolidation plan loan.

365 Credit also has its own credit cards which they call as the OCBC 365, which can be used to avail a loan. It is an all-around cashback credit cards for those who spend money on everyday items. It even has a bonus cash feature where you can earn from 3% up to a maximum of 6% on grocery, online shopping, dining, and gasoline bills.

How 365 Credit works?

365 Credit works by no longer splitting dining rebate tiers by weekdays and weekends with a rate of just 6%. It even covers food delivery apps such as FoodPanda and Deliveroo. A 3% loan rate on groceries is also included in its terms conditions.

This is one of the many reasons why it is one of the most sought-after credit cards by most Singaporeans. Meanwhile, bonus cash backs for loan include online travel bookings, electric bills, as well as public transport, and each still having a 3% rate, according to a review. Take note, though, that you can get extra loan rebates on gasoline spent from your personal car and not from public commute. This is great if you need to invest loan funds for your investment scheme.

Can you get a personal loan with 550 credit score?

Yes, you can. But you’ll have a harder time than if your credit score is higher than 550. Most Singapore personal loans prioritize applicants who have credit rating of 600 and above. While there are some accepting a minimum of a 550 credit rating, expect that you’re going to have to present more documents such as income statements to prove that you can repay the amount. There are also times when you get a shorter loan tenure. Don’t worry if your salary is only S$30,000 because you can still get one, though.

 Credit Counselling Service Singapore  

Which moneylender in Singapore has the lowest interest rate?

365 Credit Solutions

365 Credit Solutions offers one of the lowest interest rates in Singapore. It has an effective interest rate EIR of 3.5%, which actually is the lowest rate in the current market.

Though there’s a 1% processing fee for your initial personal loan application, it isn’t really that bad knowing that you’re free from paying any fee for your next personal loan application. It’s also very similar with a DBS personal loan and OCBC personal loan. Also review your balance first before availing to avoid issues.

Along with the loan, you can also avail its credit card. It’s a great choice of entry-level cardholders or those that have minimum annual income of S$30,000. Take note, though, that the minimum OCBC expenditure is $800, with no maximum amount stated. Not hitting the $800 mark means that you’re only getting a minuscule OCBC 0.3% personal loan rate, which is a bit similar to a DBS personal loan.

This is a great card to use on many different things, except for retail shopping and leisure. It’s because restaurants are the only qualified venue to get a cashback. Pubs, bars, and amusement parks aren’t included.

If you are looking for a credible and established professional money lending service in Singapore, then 365 Credit should be your number one choice. We offer the lowest interest rates for personal loan in the market. We are also licensed under the Registry of Moneylenders in Singapore, assuring you that you are in safe hands. Contact us now and learn more about our appealing offerings.

How Much Can I Borrow From A Licensed Moneylender ?

Licensed moneylenders are part of the financial institutions that have the authority to grant loans to people, which are repaid over a stipulated period of time. On short notice, moneylenders can come in handy, and they offer several types of loans, including personal loans and payday loans.
You have to be sure that the moneylender you want to sign up with is licensed and following the rules and regulations that are in place to protect both them and we the customers.

Unlicensed moneylenders in Singapore are basically loan sharks who have no qualms about cheating you out of house and home, and may even commit identity theft, ruining you in the process.

WHY SHOULD I BORROW FROM MONEYLENDERS?

Moneylenders have a more flexible loan approval process, allowing you to access your loan in the fastest time possible, at least faster than if you were getting a loan from the bank.

Most moneylenders keep the background checks to a minimum, requesting just a few documents on your part. With strict interest rate charges set by regulatory bodies, borrowing from moneylenders can make repayment easier for you than borrowing from other lending institutions.

HOW MUCH CAN I BORROW?

There are two types of loans that you can opt for when borrowing from a moneylender:

Secured loans are loans that you get after giving the moneylender some collateral, which ensures that you repay the loan.
Unsecured loans are loans that you get on the basis of your credit score or credit history, without any form of collateral.

When borrowing from moneylenders, you can get any amount you want if you are taking a secured loan.
If you are taking an unsecured loan, you are eligible for the following amounts:

If your annual income is less than S$20,000, you can borrow up to S$3000.
If your annual income is more than S$20,000 but less than S$30,000, you can borrow up to 2 months’ income
If your annual income is more than S$30,000 but less than S$120,000, you can borrow up to 4 months’ income.
If your annual income is S$120,000, you can borrow any amount you want.

WHAT ARE THE INTEREST RATES?

As of October 2015, moneylenders charge an interest rate at the maximum of 4%, regardless of amount borrowed. This 4% interest is also charged for nothing secured and unsecured loans.
If you miss a repayment in any month, the interest on that late payment is still 4%, and it is charged to the delayed payments.

WHAT ARE THE FEES?

Moneylenders are permitted to place the following fees, and only these fees, on the loans they grant:

When you have been granted a loan, you are charged a fee of no more than 10% of the principal of that loan
For each month’s repayment that you miss, you are charged a fee of not more than S$60
For any successful claim filed by the moneylender for the recovery of a loan, you are to pay the legal costs that have been ordered by the court

How Much Can I Borrow From a Licensed Moneylender ?

Licensed moneylenders are part of the financial institutions that have the authority to grant loans to people, which are repaid over a stipulated period of time. On short notice, moneylenders can come in handy, and they offer several types of loans, including personal loans and payday loans.
You have to be sure that the moneylender you want to sign up with is licensed and following the rules and regulations that are in place to protect both them and we the customers.

Unlicensed moneylenders in Singapore are basically loan sharks who have no qualms about cheating you out of house and home, and may even commit identity theft, ruining you in the process.

WHY SHOULD I BORROW FROM MONEYLENDERS?

Moneylenders have a more flexible loan approval process, allowing you to access your loan in the fastest time possible, at least faster than if you were getting a loan from the bank.

Most moneylenders keep the background checks to a minimum, requesting just a few documents on your part. With strict interest rate charges set by regulatory bodies, borrowing from moneylenders can make repayment easier for you than borrowing from other lending institutions.

HOW MUCH CAN I BORROW?

There are two types of loans that you can opt for when borrowing from a moneylender:

Secured loans are loans that you get after giving the moneylender some collateral, which ensures that you repay the loan.
Unsecured loans are loans that you get on the basis of your credit score or credit history, without any form of collateral.

When borrowing from moneylenders, you can get any amount you want if you are taking a secured loan.
If you are taking an unsecured loan, you are eligible for the following amounts:

If your annual income is less than S$20,000, you can borrow up to S$3000.
If your annual income is more than S$20,000 but less than S$30,000, you can borrow up to 2 months’ income
If your annual income is more than S$30,000 but less than S$120,000, you can borrow up to 4 months’ income.
If your annual income is S$120,000, you can borrow any amount you want.

WHAT ARE THE INTEREST RATES?

As of October 2015, moneylenders charge an interest rate at the maximum of 4%, regardless of amount borrowed. This 4% interest is also charged for nothing secured and unsecured loans.
If you miss a repayment in any month, the interest on that late payment is still 4%, and it is charged to the delayed payments.

WHAT ARE THE FEES?

Moneylenders are permitted to place the following fees, and only these fees, on the loans they grant:

When you have been granted a loan, you are charged a fee of no more than 10% of the principal of that loan
For each month’s repayment that you miss, you are charged a fee of not more than S$60
For any successful claim filed by the moneylender for the recovery of a loan, you are to pay the legal costs that have been ordered by the court