Alwin Goh
Singapore’s northeastern residential district, Hougang, borders Punggol to the north, Upper Serangoon Road to the south, Sungei Serangoon to the east, and Yio Chu Kang to the west. As of 2015, over 51,000 housing units are Hougang New Town, Singapore’s largest public housing estate by land area.
This self-sufficient community has several amenities nearby and in the surrounding area. Retail outlets for fashion, home furnishings, electronics, casual and fast-food dining, family-oriented restaurants, and various businesses and services are available at Hougang Mall, Heartland Mall, Hougang 1, and Serangoon Shopping Centre.
Living in Hougang is associated with an expected increase in the cost of living, attributed to the numerous attractions in the area. However, there’s no need for concern, as legal lenders are available to assist you with your short-term financial needs.
In situations asking for immediate funds, obtaining assistance from a Hougang money lender can prove to be highly advantageous.
However, it is important to know the essential things before borrowing from a money lender.
What Are The Important Things You Need To Know When Borrowing From A Hougang Money Lender?
When the need for immediate funds arises, turning to a licensed moneylender in Hougang can be a practical solution. However, it is crucial to be well-informed about essential factors before considering borrowing from a legal lender. One must keep the following significant factors in mind:
1. Lenders provide a range of personal loan options with varying terms and conditions.
There may be a variety of loan options available from legal lenders, each of which may vary in terms of the interest rates, repayment terms, maximum loan amounts, and other aspects.
To choose which loan offer is best suited to meet your needs, it is therefore possible that you will need to compare the numerous options provided by various lenders.
2. Unsecured loans from licensed lenders do not necessitate collateral.
In contrast to larger loan types, such as mortgages or car loans, you are not required to pledge your house or car to secure approval.
These loans, commonly known as unsecured loans, only require meeting the moneylender’s requirements and providing the necessary documentation for the application process.
3. You can borrow up to six times your monthly income.
If your annual income is S$20,000 or more, you have the potential to borrow up to six times your monthly income through an unsecured loan from a legal lender. This is the maximum loan amount you can borrow from a lender.
Discover more on how much you can borrow from a money lender.
4. You can used personal loans in Singapore for various types of financial needs
These types of loans can be used for a variety of purposes. This can be used for a variety of financing purposes, including but not limited to: spending for unexpected emergencies, debt consolidation, home improvement, big-ticket items, wedding expenses, and many other situations.
5. Having a good credit score is not a prerequisite for obtaining a loan from a licensed lender.
In contrast to traditional financial institutions, legal private moneylenders do not automatically reject applicants with low credit scores.
Most Singapore moneylenders don’t require good credit for personal loans. A good credit history can still help. A good credit score may help you get a loan with a reduced interest rate and a higher limit.
A strong credit score shows the lender that you can responsibly manage and repay the debt.
On the other hand, if you have a low or bad credit score, here are some ways to get a personal loan even with a bad credit score.
6. Licensed moneylenders in Singapore operate under strict regulations set by the Ministry of Law, which include an interest rate cap for personal loans.
With effect from October 1 October 2015, moneylenders are permitted to charge interest rates of up to 4%. Whether the loan is secured or unsecured, this cap is applicable regardless of the borrower’s income.
Moreover, legal money lenders can only charge interest rates for late payments capped at 4% per month. This is calculated based on the missed installment, not the principal amount or remaining balance.
Furthermore, here are the allowable fees that moneylenders can legally charge:
- Late fee of no more than $60 for each month that the repayment is delayed;
- a fee that, in the event that a loan is approved, cannot exceed 10% of the principal; and
- Legal fees are imposed by the court in the event that the moneylender’s attempt to reclaim the debt is successful.
7. You can submit an application for loans from a legal moneylender even if you currently have an existing unsettled loan.
Despite the common belief that having existing loans might hinder approval, many money-lending agencies consider applicants with ongoing loans. Approval depends on the borrower’s capacity to manage the repayment of two loans simultaneously. However, applicants unable to showcase this capability may face rejection.
Additionally, while some moneylenders enforce restrictions on holding only one type of loan, reputable ones often allow multiple loan types under one’s name, given that applicants meet requirements and adhere to Ministry of Law limits.
Further insights on managing multiple loans can be found in the article: get a personal loan even with a bad credit score
8. Securing a loan from a lender is fast and easy.
Getting a loan from a legal lender is a convenient and expedited process. Begin your loan application through the moneylender’s 24/7-accessible website.
Once submitted, the approval of your loan application typically takes only a few minutes. Following this, a brief visit to the lender’s office for face-to-face verification is required. As a result, you can get your loan proceeds the same day you apply.
9. Make sure to borrow from a lender listed in the Registry of Moneylenders in Singapore.
Ensure that you borrow from a lender registered in the Registry of Moneylenders in Singapore. The simplest way to verify a moneylender’s legitimacy is by constantly checking the regularly updated list of licensed moneylenders provided by the Registry of Moneylenders every month.
In addition to confirming the validity of their license, it is advisable to invest some time in reviewing feedback and comments about licensed moneylenders.
10. Borrow only what is necessary.
While loan approval rates are often high, some individuals may be enticed to request more than their actual needs.
However, it’s crucial to resist this temptation, as borrowing incurs costs, particularly in the form of interest rates. Many individuals overlook the potential accumulation of interest charges, which can rapidly increase if the loan is not repaid promptly.
Therefore, it is important to request only the essential loan amount needed, minimising the risk of accruing unnecessary interest charges and promoting a more financially responsible borrowing approach.
The Bottom Line
Before borrowing from a legal lender in Hougang, it is important that you know these essential factors, as this will guide you in making smarter financial decisions. Moreover, please observe that there are various considerations when borrowing from a lender, and you must be aware of that, especially when it comes to the terms and conditions.
Also, please ensure that you only borrow from a legitimate lender to avoid falling victim to loan scams.
Moreover, ensure that you borrow only the amount you require to steer clear of falling into a debt trap.
Are you looking for a licensed lender in Hougang to meet your immediate fund needs? Do not hesitate to contact Crawfort. It will only take 8 minutes to approve your loan.
