There are times you may encounter financial issues and problems with paying off your debts. There may be emergency expenses such as an unexpected illness or debts incurred. This may be unavoidable and can cause you much stress. There are licensed moneylenders in Singapore that can help you tide through difficult times and enable you to borrow cash that you need to cover your expenses. What are the things you need to consider before taking up a loan? Here are some tips:
1) Comparing Licensed Moneylenders and Interest Rates for your Personal loan
The most immediate concern for you would be the interest rate for your cash loan. Interest rates vary between lenders and even banks. Therefore, it will be wise for you to compare interest rates and banks before signing any agreements with a lender.
2) Debt Servicing Ratio
Before making the decision to take up a loan, you should be aware of your debt servicing ratio. A debt servicing ratio or DSR is the monthly payment you have alloted for your bills. By comparing your debt servicing ratio to your income, you will be able to make a sound decision on whether it is still possible to add another debt in the form of your monthly repayment on your cash loan. By ensuring that your debt does not go beyond 50 percent of your income, this will increase the chances of you being eligible for a loan. This will also mean you are able to upkeep your monthly payments and not fall further in debt.
3) Choosing A Moneylender
Taking up a loan requires some thought, and after making the decision, it is time for you to look for a reputable personal loan from a local (Singapore) lender. Of course, you would want to borrow from a reputable moneylender. Some of the things you should look out for are:
– Reputation of the moneylender
– Low or reasonable interest rate
– Flexible repayment terms
The reputation of the moneylender is important and you may consider the number of years that the moneylender has been in the business. Needless to say, the longer the business has been around, the chances of it being a stable and reliable one is much higher.
If you are not sure where to look, you may consider asking your friends or family for recommendations. Someone who had taken up a loan before and was a satisfied client would be able to refer you to a licensed moneylender that they trust from their personal experiences.
Remember, you are looking for a licensed moneylender who is experienced and reputable. One that can offer low interest rate and flexible repayment terms. Before that, be sure to find out about your debt servicing ratio and understand what it means to be taking up a loan before committing! This will make the lending and repayment process much simpler and hassle-free!