Everyone wants to enjoy their life to the fullest, which means you must secure your finances to experience just that. But what if the finances aren’t moving according to your wishes? Of course, there is, and preferably, you must assess and fulfil every licenced money lender borrower eligibility before anything else.
Is this the only way to acquire the funds you require from Singapore’s money lenders? Yes, it is, and so you have nothing to worry about.
Here, the light and truths will be shed through this article and guide you to complete the lucky 11. Stick around for an enlightening trip you’re about to take!
Licenced Lender Borrower Eligibility: Your Lucky 11
The fascinating world of borrowing can sometimes feel like the Hunger Games arena, teeming with rules and surprises around every corner. And you shouldn’t worry about yourself anymore. Much like the resilience of Katniss, you, too, can master the game with the proper understanding of the relevant details.
So, it’s time to take on these essential “Lucky 11” notes on the facts that will shape the borrower’s eligibility in Singapore.
1. No Matter What People Say, Age Matters!
You must have read or heard cliches about a person’s age possibly hindering their growth or opportunities. Often, age is a barrier that they’d say shouldn’t matter.
And clearly, that isn’t the case when you’re borrowing a personal loan and other loan products from a licenced money lender in Singapore. Age matters a lot; it’ll be your first ticket to joining an exclusive club.
You must be at least 18 years old to walk into this world. The rules affirm that you, as a borrower, are legally competent to enter into a contract.
2. Income Consideration
Are you currently employed? If you are, congratulations!
You’ve unlocked an essential door for licenced money lender borrower eligibility. Your income will play a role in your financial strength.
It’s the cornerstone upon which loan amounts undergo determination. As per Singaporean regulations, borrowers with an annual income of less than $20,000 can loan up to $3,000.
As the income increases, so does the loan eligibility, reaching an unlimited for earnings over $120,000.
3. Loan Cap
A cap is crucial, especially when considering the licenced money lender borrower eligibility. No, it isn’t a ball cap, but a loan cap.
It’s the type of cap that’ll act as your financial lifeline, as it also helps prevent you from drowning in excessive debts. You surely wouldn’t want that.
The capping depends on your annual income and whether you take out a secured or unsecured loan. For instance, those earning less than $10,000 can borrow up to $3,000 unsecured.
The capping increases with income, thus granting a boundless secured loan to those achieving more than $120,000.
4. Licenced Money Lender Borrower Eligibility Interest Rates
Do you find interest rates interesting?
Or topics about it don’t concern you?
It should interest you because it will affect your overall loan repayment. An interesting fact about Singapore’s interest rates is that licenced money lenders impose a capping.
The rate is capped at 4% monthly. The rate remains regardless of income level or loan security, ensuring fairness in the system.
5. Loan Tenure
Every borrower’s journey to seeking a loan from a licensed money lender with different financial situations. Legal money lenders understand this well and thus come in flexible loan tenures ranging from a few months to even a few years or more.
The flexibility helps guarantee you won’t feel choked by the repayment period. So, it makes your borrowing travel as smooth as a leisurely river float.
6. Foreigners Are Welcome
Singapore’s moneylending cosmopolitan spirit extends to its moneylending regulations. Yes, you’ve read it right!
The Lion City’s licenced money lenders welcome foreigners in Singapore, too. As long as you hold a valid employment pass and meet the basic requirements, you’re as eligible as any Singaporean Citizen and Permanent resident.
Remember, diversity is among the city’s charm and does not stop at its lending laws.
7. Credit History
Everyone makes mistakes, and it’s a fact. But that doesn’t mean you’re doomed forever.
While your credit history matters in the loan application process, don’t worry! Legal money lenders will still consider your application even with a not-so-sparkling credit history. After all, it’s not just about where you’ve been; it’s about where you’re going.
8. Employment Proof
Getting a loan from a licenced money lender borrower eligibility isn’t much different from dancing at a Singaporean festival. The festival instructs you to know the steps; the loan necessitates you to show your employment proof.
Your job stability and income level are critical in determining loan eligibility and amount. Singapore’s licenced money lenders strive to understand your unique situation.
9. Debt Servicing Ratio
Your Debt Servicing Ratio (DSR) is like juggling durians – it can be tricky but vital. The DSR indicates the part of your income used to service your debts.
In Lion City, your DSR should ideally stay within 50%. It confirms that you have enough earnings to manage your daily expenses while servicing your loan.
10. Bankruptcy: There’s Always a Way with Licenced Money Lender Borrower Eligibility
Challenging circumstances could arise when financial issues happen; even a bankruptcy history doesn’t mark the end of your borrowing possibilities. Singaporean money lenders consider various aspects beyond past financial mistakes.
So, if you’re a discharged bankrupt, don’t lose hope. With the correct documentation and a solid repayment plan, you can still explore the loan’s landscape.
11. Loan Purposes
Whether you need funds to slay dragons of home renovation costs, rescue the princess of education fees, or explore the kingdom of travel experiences, licensed money lenders like Accredit are here.
The purpose of your loan is considered during your application process, so make sure you have a straightforward quest in mind when you set off on this adventure!
The Golden Ticket to Lender Borrower Eligibility
For a borrower like you, the globe of loans can sometimes feel like an unravelling cryptic treasure map. Yet, with Singapore’s comprehension of moneylending laws, it becomes more of an adventure and less of a riddle.
Moneylenders Act: The crucial legislation governing all matters related to moneylending, outlining borrower rights and lender responsibilities.
Interest Rate Cap: The maximum interest rate licensed money lenders can charge is 4% monthly.
Late Payment Fees: A cap on late payment fees also confirms that borrowers like you are not excessively penalised for late repayments.
Advertising Regulations: Money lenders in Singapore are restricted in how they can advertise their services to shield borrowers from misleading information.
Unfair Contract Terms: The law protects borrowers from unfair contract terms, stipulating that any such terms are void and unenforceable.
Remember that licensed moneylenders are the best options when seeking a loan. Unlicensed moneylenders or loan sharks do not follow these specific laws, and you must protect yourself from their unjust jaws.
Licenced Lender Borrower Eligibility to Conquer Your Financial Conquest
With the “Lucky 11” by your side and the golden ticket of Singaporean money lending laws in your hand, the maze of borrowing becomes a journey of discovery. It’s similar to going on an adventure; understanding these essentials turns a potentially formidable process into an empowering and informed experience.
Borrowing is necessary and can be an enlightening journey. Let Accredit be your trusted companion in the licenced money lender borrower eligibility adventure. With all of this crucial information at your fingertips, it’s time for you to step into the borrowing universe confidently.
Get ready and fulfil all these eligibility criteria with a licenced money lender in Singapore today!