Alwin Goh
Bugis, situated in the heart of the Central Business District (CBD) in Singapore, is home to the renowned Bugis Street. Recognised as the largest street shopping destination in Singapore, Bugis Street attracts both locals and tourists alike.
In addition to the Bugis Street Market, it is home to two of the most well-known retail centres: Bugis Junction, which is a contemporary shopping area that features a cinema and is connected to the Hotel Intercontinental in a seamless manner, and Bugis Village, which is strategically placed immediately across the street. Bugis Village presents a pasar malam-styled (night market) shopping space characterised by dark, narrow corridors and a bustling array of small stalls offering affordable clothing, bags, watches, and culinary delights.
If you are planning to enjoy the weekend with a shopping escapade in Bugis but are facing financial constraints, obtaining a personal loan from a Bugis money lender is a viable solution.
However, before taking out a personal loan, it is essential that you know the top considerations and the borrowing process.
Why Borrow From A Licensed Money Lender in Bugis?
Choosing a licensed money lender in Bugis comes with numerous advantages compared to traditional banks or financial institutions.
Fast & Easy Application Process
Money lenders offer a quicker and more efficient application process. For instance, at Crawfort, your loan application can be approved in just 8 minutes.
Less Strict Eligibility Criteria
In contrast to banks, legal lenders have more lenient requirements and greater flexibility with certain conditions, such as the borrower’s credit history.
Ideal for Immediate Cash Needs
If you are in need of quick cash, the best option is to work with a money lender. Furthermore, they offer more manageable loan terms compared to the long-term durations provided by conventional banks.
What Are The Top Considerations Before Taking Up A Loan From A Bugis Money Lender?
Here are the key considerations before getting a loan from a legal lender:
1. Explore Alternative Options. Before engaging with a money lender, explore alternative financial assistance schemes offered by various government agencies. Reach out to these agencies to gather information about their available schemes.
Additionally, explore alternative solutions to personal loans in Singapore, especially for individuals facing unemployment.
2. Legal Commitment. Understand that you are legally obligated to fulfil any loan contract with a licensed moneylender. This obligation should not be taken lightly, and you must carefully consider the terms.
Financial Capacity. Assess your ability to adhere to the contractual terms, taking into account your income and
3. financial responsibilities. Borrow only what is necessary and within your means to repay. Failure to meet the terms may result in financial strain for both you and your family.
4. Clear Understanding of Terms. Moneylenders are mandated by law to explain loan terms in a language you comprehend and provide a copy of the contract. Ensure you fully grasp the terms, especially the repayment schedule, interest rates, and applicable fees.
5. Cautious Agreement to Property-Related Terms. Exercise caution when agreeing to terms that allow a moneylender to place a caveat on the sale proceeds of your real estate property in case of default. This caveat can impede property sale until the loan is repaid, potentially affecting a significant portion of the proceeds.
6. Comparative Analysis of Moneylenders. Shop around and compare terms offered by different moneylenders to secure the most favorable conditions. Refrain from hastily committing to a loan until you are satisfied with all terms and conditions. Taking the time to explore options can lead to a more informed decision.
How Much Personal Loan You Can Borrow From A Lender?
Unsecured loans have defined maximum restrictions that are determined by the borrower’s annual income, whereas secured loans allow the borrower to access whatever loan amount they choose.
In order to determine the total maximum amount that can be borrowed from any moneylender in Singapore, please refer to the table that is provided below:
| Borrower’s Annual Income Requirement | Singaporean and Permanent Residents | Foreigner residing in Singapore |
| Less than S$10,000 | S$3,000 | S$500 |
| At least S$10,000 and less than S$20,000 | S$3,000 | S$3,000 |
| S$20,000 and above | 6 times your monthly income | 6 times the monthly income |
Source: MAS
How Much Interest Rates a Licensed Money Lender in Bugis can Charge?
Effective from October 1, 2015, licensed money lenders in Bugis are constrained by a maximum interest rate of 4% per month. This limit is applicable irrespective of the borrower’s income level and whether the loan is secured or unsecured. In cases of delayed repayment, the maximum late interest rate a moneylender can impose is also capped at 4% per month for each overdue month.
The computation of interest on the loan is based on the remaining principal amount, calculated by deducting the total payments made by or on behalf of the borrower, which are allocated to the principal. For example, if a borrower takes a loan of S$12,000 and has repaid S$5,000, only the remaining S$7,000 is considered for the interest calculation.
It’s important to note that late interest can only be charged on the amount repaid after the due date. Moneylenders are prohibited from charging interest on outstanding amounts that are not yet due for repayment.
What Are the Fees that A Lender can legally charge?
The following fees and charges are the only ones that moneylenders are permitted to charge as of 1 October 2015
- A fee not exceeding S$60 for each month of late repayment.
- A fee not exceeding 10% of the principal when a loan is granted.
- Legal costs mandated by the court for a successful claim by the moneylender for loan recovery.
Furthermore, the total charges imposed by a moneylender on any loan, encompassing interest, late interest, upfront administrative fees, and late fees, must not exceed an amount equivalent to the principal of the loan.
Learn more about the interest rates and fees that a private moneylender can impose legally by reading this article here.
How To Check Whether A Lender Is Licensed Or Not?
Avoid engaging with unlicensed moneylenders. Confirm a moneylender’s licensing status by referring to the official list of licensed moneylenders available here.
Even If A Moneylender Is Licensed, Exercise Caution If They:
- Engage in behaviour that is threatening or use language that is abusive.
- Make a request for your SingPass email address and/or password.
- Do not lose your National Registration ID Card (NRIC) or any other personal identification documents, such as your driver’s licence, passport, work permit, job pass, or ATM card.
- You will be asked to sign a Note of Contract for the loan that is either blank or incomplete.
- Make a loan available without first providing a copy of the Note of Contract and/or without first providing a comprehensive explanation of all of the terms and associated circumstances.
- Grant a loan without conducting the necessary research (for example, granting a loan over the phone, via text message, or via email before obtaining your full loan application form and accompanying papers such as your income tax assessment and paystubs).
- Withhold any portion of the principal amount of your loan without providing a plausible explanation.
Those practices mentioned above are unacceptable. If you encounter them, promptly report the moneylender to the Registry of Moneylenders, providing details such as the moneylender’s business name, license, and contact numbers.
How To Distinguish Between Advertisements From Licensed And Unlicensed Moneylenders?
The advertising rules, effective since 1 November 2011 specify that licensed moneylenders can only advertise through three approved channels:
- Business or consumer directories (in print or online media).
- Websites owned by the moneylender.
- Advertisements placed within or on the exterior of the moneylender’s business premises.
Any advertisements received through unauthorized channels, such as flyers, SMSes, emails, or other forms not compliant with these rules, indicate either licensed moneylenders violating regulations or unlicensed moneylenders.
It is strongly recommended not to respond to such advertisements. Instead, promptly report these instances to the Registry at 1800-2255-529 or through their website. The Registry will investigate errant licensed moneylenders, while the Police will handle cases involving unlicensed moneylenders.
How Can I Report Unfair Practices Or Contract Issues With A Moneylender?
To complain about unfair practices or disagreements over contracts with a moneylender, call the Registry at 1800-2255-529.
The Registry will not share your information with the moneylender without your agreement. Registry officers may ask you to provide all relevant loan and moneylender information and papers in an interview for an effective investigation.
It is the responsibility of the Registry to take complaints lodged against moneylenders very seriously and to conduct exhaustive investigations in order to ensure that dishonest moneylenders are held accountable.
If you’ve experienced unfair practices, you have the option to pursue the matter through the Small Claims Tribunal or the Court under the Consumer Protection (Fair Trading) Act. The Court possesses the authority to set aside loan transactions deemed exorbitant or substantially unfair.
How To Secure A Personal Loan From A Legitimate Lender?
Step 1: Online Application
Complete the online loan application form for Singapore and await for the loan approval.
Step 2: Face-to-Face Verification at the Lender’s Office
Following a loan confirmation call from our loan officer, visit the lender’s office with the required documents.
For Singaporeans/PRs, bring personal identification documents (NRIC or Passport), access to your SingPass account, payslips from the last 3 months, and proof of income for self-employed individuals.
For Foreigners, provide an employment pass, passport, proof of home address, and payslips from the last 3 months.
Step 3: Signing of Loan Contract
Before signing the loan contract, thoroughly understand all terms and conditions. Consider the principal loan amount, interest rates, additional fees, and review your repayment period. Seek clarity from your loan officer if any aspect is unclear. Only proceed to sign the contract when you are fully informed and understand the terms.
Step 4: Instant Access to Fast Cash Loan
Upon signing the contract, you’ll receive your funds either in cash or through a bank transfer, typically within the same day. Ensure timely monthly payments to avoid unnecessary late interests and fees.
What To Do After Securing A Loan?
After successfully securing a loan, it’s essential to take proactive steps to ensure a smooth and responsible financial journey. Here are some tips on what to do after obtaining your loan:
- Verify that the moneylender disburses the correct principal amount of the loan, as they are only allowed an upfront deduction of a loan approval fee, capped at 10% of the principal amount.
- Ensure timely payment of loan installments to prevent the accrual of late payment fees and late interest.
- Confirm that the moneylender provides a receipt for each repayment made towards your loan, and meticulously check it for accuracy, including details such as name, amount, and date.
- Receive a statement of account for all your loan(s) at least once every January and July, and thoroughly examine it for accuracy in details like name, amount, and date.
- Retain all statement of accounts and payment receipts as crucial documentation and evidence of payment.
The Bottom Line
Overall, borrowing from a Bugis money lender takes careful decision making. While Bugis has bustling retail and a lively atmosphere, personal loans should be handled carefully.
Making informed decisions requires understanding the borrowing process, top considerations and regulations
Borrowers can maximise their loan experience and protect their finances by following this guide and avoiding unlicensed lenders.
Looking for money lender near Bugis? You count with Crawfort. It only takes 8 minutes to approved your loan making it ideal for any urgent cash needs. Apply for a loan today!
