You have seen advertisements for loans on your mobile phones before.
You always tell yourself that you will never need such a service — borrowing from money lenders or credit companies.
One, because you have savings, two, because you are not sure about using their services compared to banks.
However, legal credit service companies (like licensed money lenders) can provide legitimate personal loans that help you tide over emergencies so you can tackle your financial problems with reasonable interest rates and repayment schedules. Take note licensed money lenders will not solicit loans via SMS or WhatsApp on your mobile. It’s important that you know how to differentiate between licensed money lenders and illegal lenders.
Well then, what are some of the instances during which taking a personal loan may help you with your financial situation? How do you recognise such instances? Read on to find out more.
Are you buying a new home?
Need to pay the downpayment of your new property but have yet to receive the sales proceeds from your previous property? Due to this, you’re struggling to come up with the cash solely relying on your savings.
However, it can be tough to get a bridging loan with the bank if you do not have a good credit history. That’s when taking a bridging loan as a form of personal loan from licensed money lenders would come in handy.
You have been dating your significant other for years and are now ready to tie the knot. However, weddings are expensive affairs.
The total bill can add up to a whopping $30,000 to $50,000 on average. A table for 10 people at a five-star hotel for the banquet easily cost $2,000 or more. Pre-wedding photoshoots and actual-day photography commonly cost thousands of dollars.
This is not forgetting the dowry and other gifts you need to prepare if you’re expected to do a traditional Chinese wedding, which comes with various ceremonies and costs.
Can you actually enjoy your dream wedding without breaking the bank?
You have a feeling that perhaps the red packets received from your family members and loved ones may be able to cover part of the wedding cost. However, you will, of course, only receive the money on the wedding day itself. This means you have to fork out most of the cash yourself first – and these can be huge amounts.
If you are struggling to come up with enough cash from your savings, a wedding loan can help ease your cash flow temporarily. The repayments can be made in comfortable instalments that work for you. Just so you know, most licensed money lenders offer personal loan tenures that range 3 – 12 months.
If you have received the keys to your new property and are ready to renovate it, you know that you need to be prepared —both mentally and financially— to take out another lump sum from your savings.
According to renovation portal Qanvast, the average renovation cost for a 4-room HDB flat can range from $7,400 to $71,370.
Light hacking work for the living room and bedrooms can cost $100-$300, while extensive ones can cost $700-$3,800. Light carpentry work for these spaces can cost anywhere between $100 to $3,400, while extensive carpentry work can cost up to $23,600.
That’s not including ceilings, partitions, plumbing, electrical wiring, painting, windows, and grills as well as furniture, electrical appliances like air conditioners, refrigerators, and so on.
There are usually also some hidden renovation costs that we need to factor into our budget as well. And if you are going for some of the latest trending interior designs, you will need to hire a skilled interior designer, which can be costly too.
It can be stressful to manage these renovation costs especially if you have just forked out large sums of money for your wedding and property purchase.
This is when taking a renovation loan can help to ease your cash flow for the time being, as you will be able to repay your loan in instalments while still being able to create and move into your dream home.
It can be very traumatising if you or a loved one suddenly meets with an accident or falls critically ill and you don’t have the money to pay for the medical expenses or necessary surgeries, especially if it is not completely covered by your health insurance and/or not completely payable by Medisave.
In most cases, you will also need to fork out upfront cash for the medical bills first before getting reimbursement from insurance.
These can cost up to 5 or 6 figures and not everyone has that amount of cash lying around.
A medical loan would be able to temporarily ease your finances if this happens. Check out the things you need to know before applying for a medical loan.
Are you planning to further your education? Higher education can be costly, typically costing up to 4 or 5 figures a year. Although you can apply for government grants and subsidies if you study at local universities, the cost can still be high.
If you are planning to study overseas, such as in the United Kingdom, the United States, or Australia, you will need to consider your accommodation and living costs as well. These can add up to around USD 60,000 a year for a top-tier university.
Some ways to offset the hefty costs include applying for study grants from universities or taking up part-time jobs.
Another popular approach is to take up a study loan, which is offered by banks and money lenders.
When life gives you lemons, you make lemonade. If you have lost your job, one temporary option that many people go for is to become a Grab or Gojek driver.
Driving a private hire car such as Grab and Gojek is still a good occupation right now due to its demand, flexibility, and perks.
However, to get started, you will need to either buy or rent a car.
A conservative buy like a second-hand Hyundai more than 10 years old can cost you upwards of $32,000, excluding annual road tax, petrol cost, parking fees, and so on.
Car rental rates can also cost from $60 to more than $100 a day.
This is why Grab/Gojek loans can be very useful for drivers, especially if they don’t have enough cash to get started to rent or buy a car.
If you are already a Grab/Gojek driver but are experiencing a lull period during which business is not good, and you’re struggling to manage your rent/mortgage and daily expenses, this loan will also be useful for you.
Most of the time, most people opt to apply for a bank loan first (and you should!) due to its lower interest rates and the longer repayment period.
However, not everyone can qualify for a bank loan, as it often comes with strict income requirements and you need to have a good credit history.
If you cannot qualify for a bank loan, don’t worry, there is still help readily available. Licensed money lenders like Soon Seng Credit don’t have strict requirements for personal loans. You can apply for a loan easily on our website and can still qualify for one even if you have a bad credit history.
At Soon Seng Credit, our interest rates start from a simple interest of 2.27% a month, with up to 12 months repayment period.