You may require loans at any point in your life. For example, you might be looking to start a business, need cash on an urgent basis for meeting household expenses, face a financial emergency, or require money to settle in a new country.
You have two options for obtaining loans: banks and money lenders. The latter is the better option because of the benefits, including quick approvals, no collateral requirements, and high borrowing limits.
However, it is advisable to always borrow money from a licensed money lender like Bugis Credit, as it is the safest way to borrow cash without any risks. Editor note: That said there are pros and cons of payday loans to consider. Getting a loan from an unlicensed agency or lenders could lead to unwarranted consequences, which are best avoided.
A licensed financer has a valid address, phone number, and contact information and follows the legal procedures before lending money. You can identify them by their transparent method of working and communication.
What are the various kinds of loans lending agencies provide, and how can you be sure of their authenticity? What are some questions related to the entire process you will find helpful? Read on to find out.
Types of Loans Agencies Provide
Most loan companies usually provide the following kinds of loans as part of their services.
Personal loans
These are helpful when you require urgent financial assistance. Such loans are not secured against collaterals or securities and only require your signature before approval.
You can borrow these for a specific term at a fixed interest rate, with the repayment period depending on factors like monthly salary, interest rate, loan contract, processing fees, and repayment capabilities.
Business loans
You might require them while going through a difficult time in your business, looking to start a new enterprise, or filling your cash flow gaps. Most people applying for such loans are usually involved in small and medium enterprises (SMEs).
Some types of credit you might require for your financial venture are SME working capital, temporary bridging loan, and trade financing. It would help if you discussed the various credit options with the agency before deciding which one suits you.
Monthly loans
These are useful for situations where you face a financial emergency and need cash on an urgent basis. The amount involved is usually high and extends to a significant period, compared to others like payday loans.
It is a better option than others like credit cards, which come with higher interest rates. The payment is done every month and includes a small part of the total borrowed amount along with interest.
Payday loans
Paydays are for unseen emergencies, unanticipated expenses, or a disturbed monthly budget. They are cheaper than high-interest credit cards and usually have flexible repayment plans. Most agencies also offer you customized payday credits suited to your requirements.
The process involved in applying for the credit
These are the steps you must follow while applying for credit.
Book a visit
You can book a visit through their official website or contact number.
Visit them on the appointment date
Visit the agency on the appointment date to determine a customized plan suited to your requirements and repayment ability.
Finalize and receive cash
Once you and the other party agree on the payment terms, fees, etc., sign the contract and receive the loan you require.
Things to check
Before submitting a loan application, you should check if the lender has a valid license and is registered with the Ministry of Law in Singapore. A few selected agencies are registered and comply with the Moneylenders Acts and Rules.
You must know the current interest rates to avoid borrowing at unreasonably high rates. Before choosing an agency, select one that offers low interest, has a flexible repayment period, and possesses a valid license.
You should avoid borrowing money from lenders that ask for your user ID and password, hesitate to return your documents during the application process, coax you into signing an incomplete contract, and approve your loan through SMS, phone or email.
Licensed money lenders like Bugis Credit are reliable and secure sources for taking credit as they are registered with the government and have permission by law to lend money. While working with a licensed credit service provider, you can be assured of transparent terms and conditions and a seamless borrowing process. A licensed money lender will lend you the money you need at short notice, without the associated complications.
