Sometimes, you cannot escape the game of life, and it’s a bit like a Monopoly game. You’re consistently manoeuvring around, trying to balance income and expenses. Once in a while, consider the personal loan rules to get the funds and keep your game going.
But honesty is always the best policy. Applying for a personal loan from money lenders can feel like you’ve landed on the most challenging task had faced, right?
That would no longer be the case! With the eleven golden rules and the commandments, this process will be less formidable and more akin to landing on the best personal loan experience you’ll ever have!
So, shall you step in?
“Thou Shalt Have a Valid Reason” Personal Loan Rules
Applying for a personal loan without a good reason is like trying to play poker with Monopoly money. It simply wouldn’t work.
When you apply for a personal loan, you must have an honest and solid reason, whether it’s funding urgent expenses, starting a business, or consolidating existing debts.
According to a 2022 report from Singapore’s Ministry of Law, 34% of the borrowers sought personal loans for debt consolidation. Doesn’t knowing you’re not alone in your borrowing expedition feels reassuring?
“Thou Shalt Not Bear False Documents” Rule
Among the personal loan rules, there needs to be more stress. Like trying to pass off a Joker card as an Ace, presenting false documents to licensed moneylenders is unethical and illegal.
An article from The Strait Times reported a 20% increase in loan application fraud. It leads to stricter verification processes, making it harder for honest folks to secure unsecured loans.
So, always keep your cards above the table, and ensure they are legit.
“Thou Shalt Have Stable Employment” Personal Loan Rules
Having a stable job is like holding a steady stream of “Get Out of Jail Free” cards. It reassures the licensed lender that you can repay the personal loan you took.
As of late, a borrower must be employed for at least three to six months at the same job before being considered eligible for an unsecured loan. If you’re unemployed or consistently switching jobs, it is like playing without a strategy – you’re less likely to win the game!
The “Thou Shalt Have a Clean Credit History” Rule
Remember when you were only a child, and a clean report card meant no grounding?
It’s the same regarding your credit history. A clean credit background tells a story of responsible borrowing and timely repayments. It can open the doors to lower interest rates and better loan terms.
Recently, the Credit Bureau of Singapore (CBS) reported that those with a ‘BB’ credit score. It indicates a clean credit history was 70% more likely to secure favourable loan terms.
Don’t you wish school grades had such influential effects?
The “Thou Shalt Understand Interest Rates” Personal Loan Rules
Interest rates can be as tricky as Monopoly’s sneaky ‘Chance” card. They significantly affect the total cost of the personal loan you will take.
You see, a loan from a licensed moneylender may have interest rates between 1% to 4% per month. The maximum figure that legal money lenders can charge is 4% only.
Understanding such information is crucial before you pen your signature on the dotted line. After all, who wants to pay more for something when you could pay less?
The “Thou Shalt Not Overborrow” Rule
Overborrowing is like eating more than your stomach can handle – leading to much discomfort, or worse, a financial bellyache due to indigestion. Per the Ministry of Law’s regulations and the Moneylenders Act’s laws, borrowers like yourself can borrow up to six times their monthly income.
It’s only possible if you are a Singaporean and non-Singaporean borrower with eligible annual income proof. Ensure you always aim for the amount you need and can comfortably repay.
For instance, earning S$5,000 monthly, you can borrow up to S$30,000. Nevertheless, would it be wise to do so?
Keep the personal loan amount lean and your finances mean!
The “Thou Shalt Review Loan Tenure” Personal Loan Rules
As you wouldn’t desire to spend eternity in Monopoly’s ‘Jail’ space, preferring a suitable personal loan tenure is crucial to your monetary trip. Whether it’s one year or five, your loan tenure impacts your monthly repayments and total interest.
Thus, always consider your board position before deciding on your next move.
The “Thou Shalt Have a Repayment Plan” Rule
Without a wise tactic, you’re just another piece on the board, right?
A repayment plan is your winning strategy against the debt game. It’s crucial to consider your monthly income and obligations to determine the amount you can comfortably repay.
However, failing to do so is like disregarding buying property in Monopoly; you will regret it.
The “Thou Shalt Know the Laws” Personal Loan Rules
Singapore’s moneylending laws aren’t only a rulebook; they’re the game instructions. Knowing and understanding these laws can help you avoid shady lenders and dodge potential pitfalls.
Now, what about these laws, you ask?
The “Loan Cap” Law:
According to Singapore’s Ministry of Law, licensed moneylenders can only loan up to six times your monthly income. It’ll guarantee that you don’t bite more than you can chew.
The “Advertising” Law:
Have you ever received an unbidden text message or cold call for a loan offer?
In Singapore, it’s illegal for lenders to advertise through text messages or cold calls. Now that’s peace of mind!
The “Interest Cap” Law:
The maximum interest rate a moneylender can charge is 4% monthly. So, you won’t have to ensure sleepless nights worrying about skyrocketing interest.
The “Fair Practices” Law:
Licensed moneylenders must explain the loan terms to you in a language you understand and provide a copy of the loan contract. It’s like having the game rules explained with much clarity, keeping misunderstandings at bay.
Ignorance can be bliss sometimes, but it can also be costly. Just like ignoring the ‘Go to Jail’ card, it won’t get you any closer to winning in your financial game.
The “Thou Shalt Research Lenders” Rule
Just as you would only buy a property in Monopoly if you look at its price and rent value, you must research potential lenders like Accredit before you decide.
Look at their reputation, loan offerings, and reviews. Accredit, for example, has built a solid reputation with its transparent process and favourable terms. It makes it a top-tier spot on Singapore’s moneylending game board.
The “Thou Shalt Read the Fine Print” Rule
And finally, remember those tiny instructions at the bottom of the Monopoly box?
That’s what the fine print on the personal loan agreement is like. It includes vital details like fees, penalties, and terms of default.
Skipping it is akin to playing a game without understanding all the rules – a surefire recipe for defeat.
Claiming Your Financial Win with Personal Loan Rules
The personal loan rules are your knowledge and a valuable key to claim financial success. As you follow, understand, and apply your awareness about the eleven commandments, you can guide through Singapore via the personal loan application process.
Accredit, your trusty licensed money lender, offers a smooth loan experience, carefully steering you through each relevant path. Whether funding your aspirations or handling unforeseen expenses, Accredit is here to support you in your financial pursuit.
So, once you’re ready to secure a personal loan that aligns with your needs, visit a licensed money lender’s website like Accredit’s, explore your loan options, and take control of your financial future today!