Loans can be required for various reasons, be it related to business or personal financial issues. When you are in need of a personal loan Singapore, instant cash loan Singapore or a payday loan Singapore, you must make an informed decision in choosing the right moneylender Singapore. Here are some questions you should ask your licensed moneylender in Singapore before applying for the loan. They will help you determine the moneylenders who are safe to approach.
- What is the rate of interest of the loan?
The higher the interest, the bigger will be your payment. If you are applying for a mortgage loan or a student loan, the interest rate could range from 4 to 6 %. Payday loans and personal loans may have different rates of interest. Your credit score could play a role in this. Hence, talk to the moneylender confirm this.
- What are your requirements for processing the loan?
You must have detailed information about the loan procedure. You may need to submit your income statements. You might need a decent credit score. Whether you will be charged an application fee, depends on the moneylender you approach. Likewise, there could be several criteria that you should inquire about before taking the loan.
- What are the penalties for late or early payment?
Moneylenders Singapore can penalize you for paying off the loan earlier or later than the correct date. Before taking the loan, always ask the moneylender regarding the penalties for late payment or prepayment. You will not have to incur financial loss if you tread carefully.
- What is the repayment period?
Repayment period refers to the time by which you have to pay back the loan with the interest. The higher the time, the lesser will be the monthly payments. The smaller the repayment period, the higher will be the periodic payments. Based on your income and expenditure, figure out what works best for you. Factor expenses for emergencies and unpredictable situations into your decision.
- What are the limitations, requirements and restrictions?
Read the terms and conditions thoroughly and go over every detail twice. There might be certain requirements and restrictions related to the usage of the loaned money. Understand the terms distinctly and know whether you have the full freedom of using the loaned money. Discuss your requirements with the moneylender before taking up the loan package.