If you’ve ever wondered “how much can I borrow from money lender” or “is licensed money lender safe”, you’ve come to the right place. In today’s economy plagued by inflation and uncertainty, you might find yourself in need of borrowing from safe money lenders.
Anyone who has considered taking a loan from a licensed money lender would have found themselves wondering how much they can truly borrow on a personal loan, is licensed money lender safe, and a slew of other questions. Fret not, this article will guide you along and provide all the answers you’ve been searching for.
What Should I Consider Before Applying For A Loan From A Licensed Money Lender?
What are the eligibility requirements to borrow from a licensed money lender?
The first thing to get out of the way is to ensure that you are eligible. All Singapore citizens, Permanent Residents and foreigners can borrow from legitimate money lenders in Singapore.
You will need to be between 21 and 65 years old, be able to show proof of consistent income, proof of identity, and proof of residential address. Licensed money lenders offer loans to Singaporeans, Permanent Residents and foreigners with valid work passes who meet the criteria.
What feasible options do I have?
Know that you can borrow money from several sources. These include banks and licensed lenders. They each offer different packages, with their own interest rates and amounts that can be loaned. You should choose the financial institution that best suits your financial situation and needs.
Apart from getting a loan or two, perhaps you might want to look further into financial assistance schemes provided by government agencies to see if these might be a way out for your situation.
Are licensed lenders legitimate businesses?
At this point, you might be wondering if a licensed money lender is safe. The answer is yes. All licensed lenders are registered with the Registry of Moneylenders under the Ministry of Law’s arm. These safe money lenders must follow the guidelines and regulations set by the Ministry of Law, specifically the laws stated in the Moneylenders Act 2008.
That being said, you should ensure the money lender is legitimate by verifying and checking the lender’s details (especially their licence number) against the information listed on the MinLaw’s list of licensed lenders.
Can I borrow from multiple money lenders?
If your desired loan is a big amount, you may be wondering if you can borrow from multiple money lenders. Well, although you can, know that it could be difficult to manage multiple payments at the same time due to the different payment amounts and due dates.
How Much Can I Borrow From Money Lenders?
If the question “how much can I borrow from a money lender” keeps floating in your head, first decide if your loan is going to be a secured or unsecured loan.
For secured loans, you can borrow any amount. . However, you will need to submit collateral to the financial institution. Should you be unable to repay the loan, the collateral —be it property or other valuable assets— will be seized and absorbed by the lender.
For unsecured loans, the maximum sum you can borrow depends on your income:
If your annual income is lower than $10,000, Singapore Citizens and PRs are allowed to borrow up to $3,000. This amount is $500 for foreigners residing in Singapore.
If your yearly income is between $10,000 and below $20,000, the maximum amount is still $3,000 for Singapore Citizens and PRs but increased to $3,000 for foreigners living and working in Singapore.
If your yearly income is at least or more than $20,000, Singapore Citizens, PRs, and foreigners residing in Singapore can borrow up to six times their monthly income.
What is the Maximum Amount I Can Borrow From A Money Lender?
The above listed maximum amounts are still subject to the lenders’ prerogative. Other than your income, these safe money lenders will first check your Moneylenders Credit Bureau (MLCB) Loan Information Report before deciding how much they are willing to lend you, or rather, how much you are eligible to borrow. Do note that this MLCB Loan Information Report licensed money lenders refer to is different from the credit score report that banks use. Banks in Singapore will refer to your credit score report from the Credit Bureau Singapore instead.
How Much Should I Borrow From A Money Lender?
As the lender considers how much to lend you, you should also remember to borrow only what you need and can confidently repay. Do not overborrow and overstretch your finances!
What To Do After Loan Approval
The first thing to do after receiving your loan is to ensure that the principal amount is accurate. Also, make sure that the standard administrative fee you are charged is not more than 10% of the principal amount.
Be sure you keep all relevant documents such as all payment receipts, copy of loan contract, statement of accounts, and any other important documents.
Lastly, do make your repayments promptly to avoid extra fees. Anyone who’s taken loans from licensed money lenders will advise to be prudent when borrowing and making timely repayments your priority.
Conclusion: Be Responsible For Your Loan And Finances
To wrap things up, one will be held responsible for one’s loans. Anyone keen on taking loans from licensed money lenders should only borrow what they need, prioritise making timely repayments and avoid unnecessary expenses.
If you ever need extra cash or find yourself thinking “how much can i borrow from a money lender right now”, feel free to chat with us to learn how we can help. 111 Credit is a private loan company in Singapore that’s trusted, friendly, and reliable. Apply for an affordable loan anytime, anywhere on our website.
