Alwin Goh
Situated in the eastern part of Singapore, Tampines stands as the third-largest new town, a product of strategic urban planning.
Once a landscape dominated by forests, swamps, rubber plantations, and sand quarries, the town’s name, Tampines, originates from the indigenous Ironwood trees, also known as “tempinis,” which once flourished in abundance in the area.
Aligned with Singapore’s urban development strategy to establish partially self-sufficient towns and alleviate congestion in the city centre, Tampines serves as one of the four regional centres in Singapore, catering to the commercial needs of both its residents and those in the broader Eastern region.
If you have just moved to Tampines and are in need of immediate cash to finance your needs, getting a loan from a money lender is of great help. In this article, we will discuss the top reasons why you should take a personal loan from a licensed money lender in Tampines.
What Are Personal Loans?
A personal loan is a type of debt you can get from banks, credit unions, legal money lenders, or nearby loan providers, typically for a short-term duration ranging from a few months to a year.
Repayment is structured through equated monthly instalments (EMIs), and individuals can utilise the funds for various purposes, including debt consolidation, home renovation, emergency medical expenses, wedding costs, or initiating a business venture.
Furthermore, it’s a type of unsecured loan that does not require any form of collateral, such as a house, a car, or other types of properties. Therefore, if you encounter difficulties repaying the debt, the lender can’t seize your assets.
Why Borrow Personal Loan From A Licensed Lender in Tampines?
Consider the advantages of obtaining a loan from a legal money lender, where flexibility in usage and a quick, hassle-free application process provide tailored financial solutions to meet your diverse needs.
Flexible Usage
Are you seeking a loan to address various financial needs? Taking a fast loan in Tampines offers great flexibility.
You may use the funds obtained from your loan for a wide range of purposes. You can use it for paying the following:
- Emergency expenses
- Monthly Bills
- Debt repayment or with Debt consolidation
- Home Renovation
- Wedding Expenses
- Vacation Expenses
- Milestone Events
- Big Purchases
- Education
- Micro Business
Quick and Easy Application Process
With minimal paperwork and quicker approval times compared to traditional bank loans, borrowers can usually access funds on the same day as their application.
This implies that this type of debt is ideal for your quick cash needs such as for medical emergencies.
Fast Approval
For fast approval of a loan, turning to a legal lender is the ideal choice. Typically, you can expect your loan application to be approved in minutes and the full cash disbursement to be completed within 24 hours or less.
In fact, legal lenders near Tampines such as Crawfort, can approve your loan application in just 8 minutes.
No Collateral Required
Obtaining a loan comes with the added benefit of zero collateral requirements. This not only reduces the risk for you as a borrower but also guarantees the safety of your assets, even if circumstances take an unexpected turn with the loans.
Moreover, this helps make your loan application much easier, as few requirements are needed.
Fewer requirements
Licensed lenders have fewer requirements than banks. It will only require you to be a Singaporean citizen, a PR or a foreigner working in Singapore with necessary documents such as passport and working permit. As for the income requirement, legal lenders have lower annual income eligibility compared to banks, Borrowers can borrow even with income less than S$20,000 annually.
With fewer requirements, this makes borrowers have higher chances of approval with their loan application.
High credit rating is not necessarily required
A high credit rating isn’t a strict prerequisite when applying for this type of loan. Individuals with low or bad credit scores can have a better chance of securing money loans through private lenders compared to banks.
Monthly Interest Rate Capped at 4%
In adherence to the regulations outlined by the Ministry of Law Singapore, moneylenders are prohibited from exceeding the 4% monthly interest limit. This cap is applicable universally, irrespective of the borrower’s overall income.
Moreover, in the event of delayed loan repayment, the moneylender is authorised to charge up to 4% for each month that the loans remain unsettled.
No Hidden Charges
According to the Ministry of Law Singapore, money lenders are authorised to impose the following permitted charges:
- A fee not exceeding S$60 for every month of late payment.
- A fee not exceeding 10% of the principal upon loan approval.
- Legal costs ordered by the court for a successful claim by the moneylender for loan recovery
Borrow Up to 6x Your Monthly Income
Access up to 6 times your monthly income when borrowing with a legal lender especially if you are earning at least S$20,000 annually.
The Ministry of Law sets the borrowing limits as follows:
| Borrower’s annual income | Singaporeans and Permanent Residents | Foreigners residing in Singapore |
| Less than S$10,000 | $3,000 | $500 |
| At least S$10,000 and less than S$20,000 | $3,000 | $3,000 |
| At least S$20,000 | 6x the monthly income | 6x the monthly income |
Sources: MAS
Please be aware that your borrowing limit accumulates across all existing loans from various moneylenders. For instance, if you’re a Singaporean with an annual income of S$12,000 and have already borrowed S$1,000 from one moneylender, you can only seek an additional loan of up to S$2,000 from another moneylender simultaneously, provided you haven’t repaid the initial S$1,000 loan.
Know more about how much you can borrow from a licensed lender here.
Quick Disbursement of Funds
Experience swift access to loan funds. When borrowing from licensed moneylenders, one of the advantages is the fast disbursement of cash immediately after you sign the agreement.
Ensure thorough comprehension by reading all terms before committing to a contract.
Flexible repayment
Private lenders, renowned for their flexibility, offer more adaptable terms and fully customisable loan plans. Licensed moneylenders provide the convenience of repayment periods of up to 12 months, particularly suitable for smaller loan amounts.
In some cases, these lenders may extend the loan tenure to two years. It’s crucial to note that opting for a longer repayment period results in a higher total interest payment.
Therefore, if feasible, it is advisable to repay the loan within a shorter period, allowing for more substantial amounts to be repaid with each instalment.
Read also: A go-to guide when borrowing for a personal loan from a licensed lender in Jurong East.
What To Watch Out For When Borrowing From A Moneylender
Unlicensed moneylenders, commonly referred to as loan sharks, present substantial risks to borrowers. They are notorious for employing unethical or illegal tactics, including exorbitant interest rates, deceptive loan terms, and aggressive collection methods.
It is imperative to remain vigilant for warning signs that may indicate you are dealing with an unlicensed money lender in Singapore:
Not Listed from the Licensed Moneylenders List
Prior to engaging with any lender, ensure to verify the comprehensive list of licensed moneylenders on MinLaw’s website. If a lender is absent from the list, they lack the necessary licence to operate.
Unsolicited Calls and Messages
Legal lenders are prohibited from promoting their services through unsolicited phone calls, text messages, WhatsApp, or on social media platforms.
Absence of a Physical Office
Licensed lenders are mandated to conduct operations from a physical office. If a lender lacks a registered physical office or insists on online or phone transactions, exercise caution, as it may be a red flag.
Refuses to Return Personal Identification Documents
Be wary if a lender declines to return your NRIC card, passport, driver’s licence, or other identification documents. Never provide your SingPass user ID and password over the phone or through email.
No Contract or Unclear Terms
Legal lenders must articulate the loan terms in a language you comprehend and furnish a copy of the loan contract. If a lender fails to provide a contract or the terms are unclear, treat it as a red flag.
Exorbitant Interest Rates or Fees
Licensed lenders need to adhere to regulations that limit the interest rates and fees they can impose. If a lender is charging considerably higher rates or fees, they likely operate as a loan shark.
The Bottom Line
While banks remain an option, if you seek a faster solution for your immediate financial needs, choosing a licensed moneylender is an ideal option.
A reputable money lender places a high priority in understanding borrower’s needs and recommends suitable arrangements aligned with the borrower’s financial capabilities. Remember, opting for a ‘licensed’ moneylender ensures an easy and secure choice.
Take the step towards financial convenience and security – submit your application for a personal loan today with Crawfort.
