Tips before taking a loan

Before approaching a money lender in Singapore, here are some moneylender tips. You can approach the various financial assistance schemes offered by various Government agencies. Additionally, you can approach banks to inquire for a loan. Banks may have longer processing time however, it is definitely much cheaper than approaching a moneylender.

Once you contract with a moneylender, you need to fulfill the loan conditions. The first thing that you should consider is whether you are able to abide by the contractual terms. Borrow only what you need and are able to repay. Be mindful that if you are unable to meet the contractual terms. The late payment fees and interest payment will be a financial strain on yourself and your family.

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Money lender review – Tips before taking a loan

The law requires moneylenders to explain the terms of a loan to you in a language you understand. They should provide you with a copy of the loan contract. Make sure you fully understand the terms of the contract. Especially, the repayment schedule, the interest rate charged and the fees applicable.

Consider carefully before agreeing to any contractual term. A moneylender can lodge a caveat on the sale proceeds of your house upon default of the loan repayment. When a caveat is lodged, you will not be able to sell it without first repaying the moneylender in full. If the repayment is taken from the net proceeds from the sale of the property, it can wipe out all or a substantial portion of the proceeds.

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Moneylender review – Tips before taking a loan

Before agreeing to any moneylending contract, you should ask around for the most favourable terms. Unless you are happy with the terms and conditions, you should not rush into any agreement with any moneylender.

If you have taken a loan with any licensed money lender in Singapore, please kindly leave a review here.
If you are looking to take a loan, do take a look through our Singapore Licensed moneylenders directory.

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