If you intend to take up personal loan in Singapore, you might want to use the service of a reputed, trustworthy lender. The lender must also offer different options and offers to the customer. It is necessary that you compare the offers from various firms. Some possible criterion on which to evaluate different lenders include:
What is the application process? The application process for a loan maybe easy or tough. A flexible company will have a simple application process. Nowadays, most lenders in Singapore have an online presence and some even allow you to apply online. Some lenders can even complete the process in as little as a few hours. An online application process is simple and requires personal information like proof of identity, evidence of employment etc. Most people can apply online for loans like car loans, personal loans etc. Compare the application procedures of various lenders.
How safe are the transactions: Online transactions are risky but with proper encryption in place, customers need not fear online applications. Different levels of online security like browser encryption, fire walls, and online monitoring are required. Lenders also have to maintain confidentiality with regard to the financial data of customers. So you must choose a company with adequate security options.
What kind of interest rates are you shopping for? The most important criterion while shopping for personal loans is the interest rate offered by the lender. You have to take time to compare the various interest rates offered by various lenders. Choose the option which matches your budget and financial situation. Also make sure before signing up for a loan, to check for hidden clauses regarding repayment options or interest rates. Remember that small loans entail low interest rates and convenient payment options. There is a diversity of small personal loans available according to your need and requirement.
What is the quality of customer service: Make sure that the Singapore money lender you have chosen is able to guide you properly through the loan process. Also make sure that you have access to an online or offline call center or hotline.
Moneylenders can charge fees only for following conditions according to Singapore laws:
- For each default on principal repayment or interest payments
- For each time you change the contract with the lender
- For each time your check is dishonored
- For every time a GIRO deduction from your bank is unsuccessful
- For early repayment or closing of contract
- Legal fees incurred for collecting loan
Singapore laws also require lenders to publicize the effective rate of interest (EIR) charged. In fact for loans advanced to those with annual income of less than $30,000, the interest rate charged by money lenders for secured and unsecured loans are capped at the following rates:
- Effective interest rates of 13% for secured loans
- Effective interest rate of 20% for unsecured loans
Effective interest rates refer to the actual cost of borrowing over a one year period. If your annual income exceeds $30,000 per year, there are no caps on Effective Interest rate and it can be agreed upon between the borrower and the lender.