on Feb 15, 2021
There are many occasions in life where we may find ourselves requiring a quick boost of cash. It can range from cashing in on a limited-time investment, facing unexpected bills at the end of the month, or paying. Whatever the reason, urgent loans in Singapore are invaluable in helping one out, and here are some reasons why licensed moneylenders make this a swift and secure affair.
They are regulated by Singapore law.
A major area of uncertainty that many people in Singapore have is the reputation and trustworthiness of moneylenders. As a result, this leads to them struggling to find other alternatives to coughing up funds for their needs and experiencing unnecessary hardship. To that end, Singapore’s Ministry of Law maintains a constantly updated list of licensed moneylenders in Singapore. Every moneylender on the list is required to strictly adhere to various requirements stipulated by law, such as having transparency in contractual terms as well as not forcing clients to make undue arrangements.
They have regulated maximum interest rates.
A major aspect that sets licensed moneylenders apart from illegal loan sharks is the strict adherence to interest rates and maximum amount able to be loaned. According to law, moneylenders are only allowed to charge a maximum of 4% interest per month, regardless of borrowers’ income and whether the loan is unsecured or not. This 4% interest rate also holds true for late repayment of loans, which is a huge contrast to the extremely exorbitant rates that loan sharks can charge. This makes it much easier for borrowers to know how much they have to pay back in advance, making it easier for them to get approval for loans in Singapore to solve urgent needs.
They have fixed types of fees they can charge.
Licensed moneylenders offer superior transparency when it comes to additional fees incurred. For example, they are only allowed to impose a fee not exacting $60 for each month of late repayment, a handling fee not exceeding 10% of the loan principal upon approval, as well as only being allowed to charge borrowers legal costs from court proceedings if required to pursue the recovery of a loan.
In addition, the cumulative charges from these fees are not allowed to exceed an amount equivalent to the loan’s principal. This gives borrowers greater clarity to make their decisions as they seek out the most competitive moneylenders for their loan needs.
They are much more flexible to your financial status.
While banks are the classic option for taking out loans, they are also known for their stringent criteria prior to approving loans. Many Singaporeans find themselves unable to hit these criteria, be it for reasons such as constant part-time employment, or coming out from a poor credit rating. In addition, banks often have a turn-around time of a week or two for loan approval, which may be too long a duration for those requiring urgent loans in Singapore.
Licensed moneylenders are much more flexible in this area, often approving loans on the same day that the application is made. Many of them understand that the emergency needs of their clients are paramount, and are often willing to go beyond the call of duty and offer simple advice as well as answering queries. In addition to transparency and adherence to regulations, they are the most ideal way of receiving quick funds for your needs.
Urgently need approval for urgent cash loans in Singapore? Contact us at R2D Credit today!