Some Do’s and don’ts while approaching the Moneylenders in sg
- Kindly take into account the myriad government schemes before even thinking about the moneylenders. Connect with those agencies and consider borrowing money from moneylenders in sg as the worst case scenario option
- Once you enter the loan contract the loan repayment (inclusive of interests) becomes a liability.
- Meditate upon this option multiple times and also ponder about your money resources. Borrow as much as you can repay. Read the contract terms and conditions diligently before acting. If you fail to meet the terms and conditions, such as the late payment fees and the monthly installments hangs heavy on you as well as your family.
- Law enforces moneylenders to explain the terms and conditions of loan contract in the language you comprehend and also provide you the hard copy of the same. Understand the contract to its last detail, the repayment schedule and the interest rate charged on every installment.
- Consult different money lenders about their interest rates before running into the contract with any moneylender. Chose the one that meets the financial requirement of you and your family.
Borrow Limit of Moneylenders In Singapore
There is no specific limit in case of secure loans. There are following instructions in case of insecure loans
- Can borrow an amount of up to 3000$ only in case your yearly income is below 20,000$
- Can borrow an equivalent amount of your two months income if your yearly income is 20,000$
or more but less than 30,000$.
- Can borrow an amount equivalent to you 4 months income if your yearly income is 20,000$ or more but less than 30,000$.
- Can borrow any amount if your income equals or is more than 120,000$
Interest Rates Moneylenders can charge
For loans lent between 1st June 2012 and 30 September, 2015 money lenders are supposed to subject you to the details of effective interest rates of the loans before the loan is initiated. If your gross income is less than 30,000$ the interest that can be charged is following
- 13% interest rate for secure loans
- 20% interest rate for unsecured loans
As per the new rules which came into effect on 1st October 2015 the maximum interest rate a moneylender can possibly charge is 4% per month. If the loan is paid late the maximum charge is also 4% per month for every month he is late.These rules are applicable for both secured and unsecured loans.