Many people face cash flow problems from time to time, and this may result in challenges in paying off certain bills or expenses, especially when there is a deadline to do so. In those situations, a personal loan might be able to help you ease your financial burden temporarily.
As a matter of fact, you’d want to look more closely at licensed money lenders in Singapore with low interest rates if you’re unable to qualify for loans from traditional banks. Legal money lenders’ loans are thoroughly legal, and they can surely come in handy when you need them to tide over an emergency or two.
Curious? Read on to find out everything you need to know about licensed money lender interest rates in Singapore, how to find licensed money lenders with the lowest interest rates, and more.
But first, what are personal loans?
Personal loans can be secured or unsecured loans. When you receive a personal loan, the cash is directly deposited into your bank account. As it is very flexible, it can be used to pay for large personal expenses.
Using loans from licensed money lenders with low interest rates
There are many ways to utilise them, such as:
1. Get out of debt
If you have multiple debts or loans with different lenders, you can consolidate these loans into a single one through a debt consolidation loan. A debt consolidation loan lets you streamline all your different eligible unsecured loans into a single one, with a single repayment plan. With this type of loan, private money lenders’ interest rates are usually offered at lower rates, too.
How do your existing debts get consolidated?Well, the lender you take the debt consolidation loan from will pay off all your other multiple debts first — you only need to repay this new single loan from a single lender thereafter.
Why should you do debt consolidation? You no longer need to be stressed about the different deadlines, interest rates, and repayment amounts.
2. Home Renovations
Building a dream home often requires significant renovation work and sometimes hidden renovation costs which are not cheap. Renovation loans from licensed money lenders with low interest rates can help you build your ideal nest with minimal disruption to your cash flow.
3. Weddings
Weddings are expensive affairs in Singapore, and personal loans are a great tool to finance your dream wedding.
Private money lending rates are competitive, which greatly benefits couples with a big day ahead. With a low interest rate wedding loan, you can plan a glitzy wedding without having to worry about overstretching your finances. A wedding loan can be used to pay for an array of wedding-related expenses from videography to catering services.
Remember to do your budgeting well so you can enjoy your wedding without breaking the bank. Always remember this — a wedding loan is to help you with your cash flow, not for you to spend what you might otherwise not be able to afford.
4. Medical Emergencies
Sometimes, the unfortunate happens, and when we or our loved ones encounter medical emergencies that wind up in hefty hospitalisation bills, it can cause a lot of financial stress and cash flow problems.
A medical loan can come in handy to fund medical emergencies that your health insurance does not cover or to tide you through the period while you wait for your insurance claims to be approved.
5. Higher Education
Regardless of whether you are studying locally or abroad, it is common to take loans to fund your (or your children’s) higher education.
Study loans with low interest rates are good because payment may be deferred until after graduation so you (your children) can focus on your (their) studies first.
In summary, personal loans from licensed money lenders with low interest rates are not only ideal for repaying comfortably within your financial means, but also they are useful for various purposes.
What’s Singapore’s licensed money lender interest rate rule about?
All licensed lenders are expected to follow the many rules and regulations set by the Ministry of Law’s Registry of Moneylenders.
In accordance with Singapore’s licensed money lender interest rate rule, licensed lenders are permitted to charge an interest rate of up to 4% monthly; this applies to both interest as well as late interest incurred on overdue amounts.
What’s the commonly charged licensed money lender interest rate in Singapore?
Most licensed lenders charge an interest rate ranging from 1% to 4% monthly. When looking for a suitable loan for your needs, definitely take this into consideration!
Is it easy to get a loan from a Singapore money lender with a low interest rate?
Well, the answer is yes if you know where to look. But, take note that while competitive, a private lender’s interest rates are relatively higher than banks’. Money lender loans are highly accessible to the majority of the people, though.
To qualify for a loan from a Singapore money lender with a low interest rate, you’ll need to furnish proof of consistent income and relevant identity and income documents.
How to find licensed money lenders in Singapore with the lowest interest rates?
To find licensed money lenders in Singapore with the lowest interest rates, you’ll have to do some homework on your end. The general steps to follow are:
- Narrow down several lenders you’d like to get loan quotes from
- Ensure the lenders are legitimate businesses — verify their money lender licence and legitimacy by looking up the Registry of Moneylenders’ official list of licensed lenders
- Obtain multiple loan quotes for comparison purposes
- Suss out the loan quote with the lowest interest rate and best loan terms
- Respond to the licensed lender with the most suitable quote for your needs
Beware of money lender interest rates in Singapore that are too good to be true
If it sounds too good to be true (i.e. an interest rate that’s too low), it probably is too good to be true. These lenders are likely scammers waiting to prowl on unsuspecting borrowers in need of urgent cash! Stay away from these lenders with all your might.
Also, stay away from money lenders whose interest rates are over 4% monthly
To reiterate, licensed lenders are not allowed to charge interest rates that go beyond 4% monthly. Those private lender interest rates that state otherwise are likely from illegal money lenders or blacklisted money lenders that you should never engage with.
Soon Seng Credit is one of the licensed money lenders in Singapore with lowest interest rates
Need to get your hands on a legal loan quickly but not sure where to start in your search for a Singapore money lender offering low interest rate? Consider Soon Seng Credit, a Chinatown money lender that’s highly regarded in the industry.
We offer competitively priced low interest rate loans with flexible repayment periods, along with speedy approval rates, and friendly, professional services. You can apply for a loan online with us in just a few minutes, either via Singpass or the manual form. Both options are equally seamless and fuss-free. Our loan officers will reach out to you in no time!
About the Author
Armed with years of experience crafting content for brands and companies across industries, Clio is ever-passionate about putting out top-notch, well-researched personal finance pieces that seek to educate.
