So you decided to take out sg cash loans. While you have the right reasons, it is important that you take time learning about money lending in Singapore. This way, you will know how what to expect and how to move forward.
Before you borrow money
Here are some things you need to know before borrowing money:
• Use a licensed moneylender: if you borrow from a licensed moneylender, you know that you are protected. The Ministry of Law regulates licensed moneylenders in Singapore. The best part is the Ministry already implemented a cap on how much interest they can charge. The Ministry also maintains a record of licensed moneylenders you can check for your peace of mind.
• Shop around for the best rates: it is crucial that you shop around for the best rates. You can conduct thorough research. Start by comparing interest rates to find the company that gives the best conditions.
• Do not believe in ads: when it comes to the Terms and Conditions, do not rely on ads because sometimes they are deceiving. It is better to clarify things directly with the moneylender.
After taking out the loan
As soon as the moneylender approves your loan application, it is crucial that you consider the following things:
• Moneylender explained the terms of the contract: it is imperative that the moneylender explained the terms of the contract as well as furnish you with a copy of it. Make sure that you understand the repayment schedule, interest rate, and the charged fees.
• Moneylender delivers the right principal loan amount: you have to ensure that the moneylender delivers the right principal loan amount. Keep in mind that the moneylender is only allowed to deduct upfront 10% of the principal amount.
• Get a signed receipt for every payment: to ensure that you have your own records, you need to get dated and signed receipt every time you repay the loan.
• Retain records: as much as possible, you should retain all statement of accounts and receipts. If you can, get a statement of account at least every six months.