There are many occasions in life when we may find ourselves requiring a quick boost of cash. It can range from taking advantage of a limited-time investment, paying for unexpected expenses, or paying for bills at the end of the month.
Whatever the reason, urgent loans in Singapore are invaluable in helping one out. Here are some reasons why borrowing from licensed moneylenders makes this a swift and secure affair.
Many people in Singapore are concerned about the reputation and trustworthiness of moneylenders. 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.
A major aspect that sets licensed moneylenders apart from illegal loan sharks is the strict adherence to interest rates and maximum loan amounts.
According to law, Singapore 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 same interest rate also applies to late repayment of loans, which is a huge contrast to the exorbitant rates that loan sharks can charge.
This makes it much easier for borrowers to know how much they have to pay back, ahead of time, making it easier for them to get approval for loans in Singapore to solve urgent needs.
Licensed moneylenders offer complete transparency when it comes to additional fees incurred.
For example, they are only allowed to impose a fee not exceeding $60 for each month of late repayment and a handling fee not exceeding 10% of the loan principal upon approval. They are, however, also allowed to charge borrowers the legal costs of court proceedings if it becomes necessary to do so to recover 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.
While banks are the typically preferred option for taking loans, they are also known for their stringent criteria for approving loans.
Many Singaporeans find themselves unable to meet these criteria, be it for reasons such as part-time employment or a poor credit rating. Also, banks often have a turnaround time of a week or two for loan approvals if the borrowers do not already have an existing account with them, which may be too long for those requiring urgent funds in Singapore.
Licensed moneylenders are much more flexible in this area, often approving loans on the same day as when 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 answer any queries. This makes licensed moneylenders the ideal option for quick funds when in need.
Urgently need approval for cash loans in Singapore? Contact us at R2D Credit today! Whether you need a loan for an emergency medical situation or to make the most of a limited-period deal, we have the right loans to suit your needs.