Right Lender for Your Loan Needs

If you are going to survey the lending industry, you can find a lot of lenders in Singapore today, and when it comes to their loan types, each one of them also has different loans such as a personal loan, salary loan, car loan and mortgage loan.

Money lenders

How to choose the right lender for your loan?

Each lender has their list of loans that they offer borrowers that are why you can’t just approach a lender and ask them the type of loan they offer; you should also check beforehand they that type of loan before your loan application.

An example of this is the salary loan. When applying for a salary loan, it is only composed of a small amount of money; probably an equivalent of your one to two months’ salary that is why banks don’t have this type of loan and you should approach a licensed money lender instead.

Aside from this given situation, there are also some other situations where a specific lender is the best choice for you to get if you wanted to apply for a loan like the following:

●    Personal loan

If you need a personal loan and you have a good credit history, you should apply first in the banks. If you are a good loan payer, banks can easily approve your loan; hence it would be easier for you to apply first in the banks when it comes to personal loans.

Another benefit with bank loans also is that a bank has a lower interest rate compared to licensed moneylenders and loan sharks in the country. The interest rate is one of the problems borrowers have when applying for a loan thus looking for a lender with a lower interest rate is good to save money.

●    Emergency personal loan

Bank loans take time to be approved that could take five to seven working days therefore if you need funds right away, you should take the banks out of your list. The best choice you have for a personal loan is the licensed moneylenders. Moneylenders don’t have many hassles, and they approve your loan immediately if you can only give them the financial documents they need.

●    Debt consolidation loan

If what you are looking for is a debt consolidation loan, you can either visit a bank or a credit card company because a moneylender can only let borrowers loan a small amount of money thus you can’t get a loan which requires a big amount of money like the debt consolidation loan in moneylenders.

Are you ready for a loan?

Most first time borrowers usually have hesitations whether they are going to apply for a loan. Over the years, people thought that having a loan would place the borrower in a worse situation but what they didn’t know is that loans are good if you can only manage it properly.

So, how can you know if you are ready for a loan and how will you choose where you can have your first loan? There are ways for you to check yourself whether you are now ready for a loan.

●    Determine if you can afford the repayments

Whatever loan you are going to get, you should make sure that you can afford the repayments. The most encountered problems by borrowers why they have outstanding loans that they are having a hard time paying because of the high interest is when they aren’t able to manage the repayments well.

Most loans would take months or years to be fully paid hence, checking your affordability is essential when you will apply for any loan; this way, you won’t encounter the same problem like other borrowers which will be seen on your credit history.

●    You can maximize the funds

Getting a loan is not comfortable where you have to pay that amount and the interest for the next years; that is why before getting a loan, you must have plans already where are you going to spend the loan.

There are many types of loans such as a mortgage loan, car loan, personal loan and many more so whatever loan you have applied, maximize the use of your loan and only use it to things you need.

●    Check the repayment flexibility

One thing that you should check before applying for a loan is whether you can handle the repayment schedule so that if you can see that you will have a hard time with the repayment terms and your monthly expenses are already at stake, you can think ahead of time what move you are going to do.

There are also some other lenders who would let you choose your repayment terms such as having your repayment every week, every two weeks or every month. Through these repayment terms, you can easily adjust your expenses and other debts, so you can manage and pay all of them with lesser stress.