Thanks to inflation, many people are still unable to pay their school fees, purchase groceries, or even medical expenses despite having a stable job. If you are one of them, you must know that there are different ways to get all the money you need without having to involve your parents. One of those ways is a loan.
However, if you don’t have an excellent credit score, you may end up paying significantly more as interest on your loan, or worse, your loan may be rejected.
Fortunately, a private licensed money lender in Singapore is the best alternative to borrowing from financial institutions. They can approve your loan application even if you have a low income. Although an expensive option, they provide instant cash even if you have a bad credit score.
8 Types of Loans a Private Licensed Money Lender Can Offer You
Here are eight common loan types that a licensed money lender in Singapore can offer you.
Salary Advance Loan
This type of loan is approved based on the borrower’s future salary or wages. It is payable either monthly or fortnightly during the repayment period. Hence, it allows borrowers to get lower interest rates than other loans like personal installments or unsecured loans.
It also provides an upper limit for the loan amount since the subject matter is salary and not current income.
Payday Loan
This form of loan is mainly offered to the unbanked and people with poor credit. It is meant for borrowers who can repay their balance before their next payday, hence the name.
However, you must remember that if you borrow a payday loan and fail to repay it on time, the lender can charge fees such as late payment penalties and rollover fees, which will only add to your debt.
Personal Loans
A personal loan provides people with a lump sum amount that they can use for different purposes. It comes at a discounted interest rate compared with other loans like credit cards or overdrafts/ cash advances from your bank accounts.
You can use the funds from personal loans to finance your company, buy a car, renovate your house, or for any personal reasons.
There is even the option of taking loans with bad credit rating, available for those with lower credit scores, making it easier to access funds even if you have a poor credit history. Even if your credit rating is less than ideal, you may still be able to get loans with competitive interest rates and terms that fit your budget.
You can find a private licensed money lender in Singapore who will provide zero processing fee and offer low-interest rates if your salary is S$8,000 per month without a regular employment contract (temporary).
Credit Card Cash Advance
If you have a credit card with surplus money, you can use it to get up to 90 percent of the available credit limit as an instant loan. However, this option is only available if you pay back within 120 days; otherwise, there will be penalties on late payment and interest charges.
This type of loan usually comes with lower rates since most lenders cannot loan more than S$10,000 to their applicants.
Secured Loans
Availing of a secured loan is the safest option if you are unsure about your current financial status. These loans are secured by tangible assets like cars, property, or jewelry with a lower interest rate than other types of money lending services.
You can get approval for five times your monthly salary even if you don’t have a stable job but make a regular income instead. It also provides an upper limit on how much you can borrow since lenders require collateral in exchange for the offered loan amount.
Personal Expenditure
A personal expenditure loan is an ideal expense that cannot be paid with cash or a credit card. It includes lending money for paying tuition fees and for house renovation at a discounted interest rate.
Hence, it is best to borrow money for expenses instead of using your credit cards. You can find the best money lender in your area from the Ministry of Law website.
Personal Instalments
It is a type of loan which can be repaid as fixed monthly installments for household expenses, tuition fees, or even car repayments at a reduced interest rate. You can decide to pay back the loan amount within 48 months or even extend the time limit.
You need to remember that the longer the repayment period, the higher the total repayment amount will be.
Car Loans
If you are trying to buy a new or used car and face a cash crunch, you can approach a licensed money lender and get a car loan.
As banks are not giving out loans for cars anymore, applying for this kind of loan makes sense. Private money lenders offer lower interest rates than banks. Moreover, since they don’t rely entirely on credit scores, they are more likely to approve your loan even if you don’t have a stable job.
If you struggle to get a loan from a government banking institution due to a low credit score, private money lenders can be an easy option. You can get different loan types from licensed money financiers quickly and efficiently.
Featured image: Pixabay (QuinceCreative).
