Unlike banks or financial institutions, money lender in Singapore is governed by the Registry of Moneylenders. It provides smaller loans (especially unsecured loans), and their processes are fast and unsecured, ideal for when you're in urgent need of cash, but do keep in mind that amounts of moneylenders are only disclosed face-to-face and substantially greater than the ones of your normal bank.
- Know your limitations:
Occasionally a moneylender might tempt you into taking a loan greater than what you're able to repay, so he can make higher interest prices. Ensure you do a quick financial check of your assets, so it is possible to make an informed choice before taking any loan.
- Know their assortment of prices:
Prices of moneylenders at Singapore can fluctuate from as much as 5% to as high as 120% a month, and a late penalty is levied on these borrowers who don't repay punctually. This can make borrowing an extremely costly process.
- Know your credit rating:
Banks are extremely strict in regards to credit score norms, and therefore, in case you've got a bad credit score, banks will be quite hesitant to give a loan for you in low interests rates. That's where moneylenders come in, because they are very lax about history checks and are pleased to lend you money provided that you have proof of revenue.