It seems too good to be true: get a large sum of money today and pay it back slowly at no interest. Is an interest-free loan in Singapore actually that simple and convenient? In this post, we take a closer look at the real cost of a zero-interest loan in Singapore.

It covers how to know if you are eligible and how you can make sure you are paying the lowest personal loan rates.

What is an interest-free loan?

With a typical loan, the lender gives the borrower a lump sum of cash and the borrower pays its value plus interest over time. The interest is the price the lender charges for providing you with convenience.

With an interest-free loan in Singapore, the borrower pays back the principal over time without any interest. On the surface, it seems that there is no advantage for the lender to do this. However, there is a catch.

With personal loan interest rates at zero, an interest-free loan in Singapore comes with a lot of fine print. The price for breaking any of those clauses can be higher than the interest on a regular loan in Singapore. So, a lender can make more money off an interest-free loan.

The cost of an interest-free loan

Interest is not the only additional cost when you take a loan. Two types of charges can add to the total amount that a borrower has to pay.

Preset charges

These are administrative charges that are common to virtually all loans. There may be some charges that apply only to interest-free loans as well. Preset charges may be prepaid when your loan is approved by the licensed moneylender in Singapore or they may be added to your monthly instalments. These charges include:

• Origination fee
• Processing fee

Penalties

These are punitive charges that are applied if the borrower fails to meet the terms for an interest-free loan in Singapore. They include:

• Late payment fees
• Missed payment fees
• Administrative fees for processing late or missed payments

Note: Not all loans come with any or all of these preset charges and/or penalties. Please refer to the loan contract and your loan executive for a detailed list of charges and their conditions.

Interest

Yes, you may have to pay interest on an interest-free loan. This happens when you break one of the conditions in the contract that comes with a penalty.

Some of those conditions also attract deferred interest. This is applied retroactively, meaning that you will have to pay interest on previous instalments that you paid in full and on time. Together, these charges can add up to significantly more than the interest on a regular loan.

Always read the fine print carefully to know the possible consequences.

Is an interest-free loan right for you?

Strange as it may seem, an interest-free loan in Singapore is not the best idea for everyone. The main reason is that there are severe consequences of not being able to pay instalments on time. Before you apply, consider these factors:

Do you have a steady income?

You should earn enough to cover the instalments as well as any emergency expenses that may arise.

Do you have the ability to avoid the temptation to spend on other things?

It doesn’t matter that you earn enough to cover loan instalments if you squander your money on unnecessary expenses.

Do you have the discipline to make payments on time?

The loan term can run into years and the consequences of defaulting on the last payment of an interest-free loan in Singapore are just as bad as defaulting on the first one.

How to get an interest-free loan

Personal loan interest rates are always changing and so are the qualification criteria. This can make it difficult to apply for a loan in Singapore. To get the lowest personal loan rates of 0%, an applicant has to satisfy some basic conditions:

1. Maintain a good credit score

Most lenders will check your credit score before they approve your loan. A good credit score within the AA to BB range indicates that you are a reliable borrower.

2. Don’t default

Late payments and defaults on previous loans raise red flags on your application. A lender is less likely to loan you money if they fear that you will not repay them.

3. Be employed

Salary is not very important if you want to get a loan in Singapore but constant employment is. If you have always had a job, even if it is casual or part-time, a lender is more likely to give you an interest-free loan in Singapore.

At Galaxy Credit, we assess each application individually according to your circumstances. You may be eligible for 0% personal loan interest rates even if you don’t satisfy all these criteria. Contact us today for a personalised quote.

About the Author

Rose RT

Hi! I’m Rose, a seasoned content creator with a knack for crafting engaging, well-researched content in the personal finance universe.

The post Interest-free Loan Singapore: What Is The Real Cost Of It? appeared first on Licensed Moneylender Singapore.

Your personal loan in Singapore was approved by a licensed moneylender – congratulations! Now comes the challenging part – sticking to the repayment schedule. There are two reasons why it is important to repay your loan as scheduled.

Firstly, there are monetary penalties every time you are late on a payment. This includes:

• A one-off late payment penalty every time you fail to pay the monthly instalment by the set date. This fee is capped at $60 per month.
• Interest on the amount due. This is calculated at up to 4% of the amount due for that month (not the outstanding loan balance).

Secondly, the cumulative debt that you incur as a result of these penalties makes it more likely that you will default on future payments. Remember, a failure to meet your financial obligations today can have catastrophic effects on your credit rating for years to come.

But not to worry, we have got your back! Here are 4 simple and proven ways you can use to adhere to your personal loan repayment plan.

1. Adjust the instalment due date

If you are employed full-time and have a constant monthly stream of income, it is important to keep your payday in mind when it comes to repaying your personal loan. Also consider last-minute purchases and emergency expenses, which will affect your repayment schedule.

Once you have a clear idea of when you receive your salary every month, approach your local money lender and ask for a revised due date for your monthly instalments. As there may be administrative expenses involved with the amendment, it is best to be absolutely sure before informing your lender.

2. Know your finances

This method is all about how well you know your finances. Before you can even determine a feasible repayment plan for your personal loan in Singapore, you need to first assess your current income and expenses.

While there are many free apps today that can help ease the burden of recording your daily personal finances, you still need the discipline to keep this habit consistent. Just think of how invaluable this information will be in helping you see where your money is going and how you can cut back on unnecessary expenses in time for your next repayment.

3. Prioritise your debts

Now that you know where to cut back on expenses, the next step is to determine where your income will go. All debts are not created equal and you have to determine the order of which gets paid first and that depends on two factors:

• Size of each debt
• The interest rate on each debt

Together, they dictate the amount by which your debt increases if you do not pay them in full. The idea is to gradually climb out of the debt by ensuring that you either maintain or reduce the amount owed.

You can use either the debt snowball or debt avalanche strategy to accelerate debt repayment.

Debt snowball – List all your debts – from smallest to largest – and make the minimum payment every month to prevent further increase in debt. Pay off the smallest debt first as best you can, and make minimum payments to the remaining debts with any money left. Over time, you will pay off that debt, and you can apply the same strategy to the next smallest debt.

Debt avalanche – List all your debts and make the minimum payment on all debts every month. Pay off the debt with the highest interest using any money that remains. Over time, you will pay off that debt, and you can apply the same strategy to the next high-interest debt. In this way, you are essentially decreasing the amount of interest you are paying.

4. Be mindful of your spending

Last but not least, budget carefully. Before taking out a personal loan in Singapore, be sure to assess your current spending and ensure that it doesn’t clash with your repayment plan. This comes with some financial planning and discipline.

If you realise you’re someone who tends to overspend, then it is time for some serious introspection on your finances and addresses the true cause of perpetually being in debt. How you spend is in your control and it is one of the best long-term solutions to having a solid financial future.

Good thing is, we’re here to help you.

Galaxy Credit is a licensed money lender that specialises in helping you secure a personal loan in Singapore. Talk to us today about our loan solutions.

About the Author

With over 5,756 5-star Google reviews and counting since our inception in 2010, Galaxy Credit is more than well-equipped to share our insights on all aspects of loans, both through the content we publish and in conversations with borrowers.

The post 4 Simple Tricks To Repay Your Personal Loan In Singapore appeared first on Licensed Moneylender Singapore.

Whether you are a Singapore citizen, permanent resident, or foreign worker residing in Singapore, securing a personal loan in Singapore has never been easier. As long as you qualify for the type of loan you are applying for, the process is pretty simple, quick, and straightforward. If you’ve reached a tough spot financially and are in need of emergency cash by getting hold of personal loans with the lowest interest rates, here are some tips you should follow when considering applying for a legal loan in Singapore.

1. Check your credit score

A credit score is used by banks, financial institutions, or licensed money lenders to gauge the likelihood of you paying off your loans on time. If you want to get the lowest personal loan rates, you have to have a substantial credit profile that shows a higher credit score or rating.

The higher your credit score, the more likely you are to get approved for a personal loan in Singapore as it shows creditworthiness. As these credit reports are sourced from a credit bureau, you will also be able to source your own credit report by requesting a copy online or from Credit Bureau Singapore for $6.42.

2. Don’t apply for too many loans at once

For a smooth sailing loan application process, you have to ensure you do not have too many loans running at once. When you apply for too many loans at one go, lenders will raise an inquiry with the credit bureau to evaluate your creditworthiness. These can be considered hard inquiries where a lender is initiating a credit inquiry on behalf of the borrower.

Bear in mind that with each direct inquiry from a legal moneylender, there is a possibility that the loan evaluation process will be further scrutinised. Rather than having multiple credit inquiries, it is much more ideal to figure out the various types of legal loan options available and identify the right fit before applying for a loan.

3. Plan your budget before applying

As with all financial plans, it is best to budget well at the very beginning, before you even apply for a loan. This step is crucial to ensure that you can repay the loan on time to avoid late fees and extra charges. If you have a gauge on the range of monthly instalment payments that you are financially able to commit to, it will be much easier to choose the type of loan in Singapore.

Doing it this way would mean that you would already know the maximum interest fee you can commit to. Budgeting wisely also requires you to look at timelines to help you work out a comfortable repayment agreement or loan tenure.

4. Prepare substantial proof of income

You must have the right documents so that you can have a smooth sailing loan application process. These include your NRIC; proof of income and employment documents such as your last 3-6 months of payslip or income tax notice of assessment (NOA); current credit report; past CPF statements; proof of residence or tenancy agreement; employment letter; employment pass and bank statements (for foreigners).

It is usually not difficult to secure proof of income for employees having a monthly salary arrangement. However, other employment arrangements like commission-based work or self-employment may prove more complex for verifying future income. Regardless of the reason, it is usually a must for borrowers to find a way to prove that they will honour their debt.

If you are applying for a personal loan without formal proof of income, you can consider showing past bank statements that indicate regular payment from an employer or credit card statements to show that you have paid your bills on time. The credit history reflects your past credit management so it can be used as an indicator of creditworthiness. Documentation of annual tax returns from IRAS can also help your cause. You should also protect your credit score to get a higher rating. Lastly, you can also consider providing a larger amount of downpayment to secure a reasonable loan tenure.

Ultimately, applying for a personal loan in Singapore is not difficult. As long as you follow the tips above and ensure you have the necessary documents on hand, you will experience a quick and seamless application and approval process.

Interested in securing a personal loan in Singapore? We’re a 24 hours money lender in Singapore with online loan applications all day long. Simply fill out the necessary details and we’ll schedule a face-to-face appointment for verification and loan approval purposes. Once all is well, you can expect to receive your cash in a jiffy!

About the Author

Hamizah Salikimen

A well-rounded media specialist, Hamizah is a storyteller, content strategist, and data enthusiast with a demonstrated history of working in various industries; including media, publishing, fintech, tech, and real estate.

The post Is It Difficult To Apply For A Personal Loan In Singapore? appeared first on Licensed Moneylender Singapore.

When applying for a personal loan in Singapore, you need to ensure you have all the documents required to get a loan. You should be aware of the documents that are needed and know how much you can borrow. Having your income details and proof of employment on hand will certainly help with your application.

The documents that are required will depend on the bank or private money lender you choose but generally, they will require these essentials:

• Proof of Income
• ID copy
• Employment information, like Employment Pass or CPF statement.

Proof of Income

If you want to borrow money from banks or financial institutions then an income statement will be required. The bank will ask for your income level and salary details so they can check if you qualify for a certain amount of loan.

In short, documents you may need for proof of income includes:

• Contribution statement to your Central Provident Fund (CPF)
• Latest income tax Notice of Assessment
• Latest computerised payslip
• Bank statement showing salary crediting into your bank account
• Other income statements as required

ID copy

If you are applying for a personal loan, the lender will ask for a photocopy of your identification card, like your NRIC or Employment pass card just to confirm your eligibility and legal status.

Employment information

If you are applying for an employee loan, then the lender will ask for your employment details such as your Employment pass card or CPF statement. The lender might also ask for proof of employment like an employment contract, job offer letter, and details of salary and bonus.

Tips to secure a personal loan in Singapore

You should carefully evaluate your current financial needs and your earning power. Plan and record your monthly budget and expenditure to establish a monthly repayment plan that you are comfortable with.

Loan Amount

This is the most important factor to consider when applying for a personal loan in Singapore. Knowing the correct amount of loan required will allow you to choose the right type of personal loan. It is also important that you obtain a personal loan with the lowest interest rates that suit your needs and try not to surpass your borrowing limit.

Loan Tenure

The loan repayment period is also crucial in determining the length of time you have between monthly instalments. Ideally, you will plan to quickly repay your loans and avoid incurring late payment fees and an accumulation of unwanted debts. Remember, the inability to repay your loans on time and in full will eventually affect your credit score.

Fees

Besides the obvious interest rate fees, there are also processing fees charged by both banks and moneylenders to process your loan application. Do check thoroughly to determine if other hidden fees are involved as they will affect your total loan amount. Also, clarify on late payment fee charges and their late payment interest rates before signing anything.

Avenues for personal loan promotions

Sometimes, there are special loan deals offered by both banks and licensed moneylenders. Banks, which are typically the big players in Singapore’s finance hub, often advertise personal loan promotions on an ad-hoc basis via their websites, newspapers, financial sites, or social media platforms. Licensed moneylenders, on the other hand, advertise their services on their corporate website, business directories, or via posters at their registered offices.

If you are looking for a flexible and affordable loan in Singapore, visit Galaxy Credit. As one of the top licensed money lenders in Singapore, we offer the lowest interest rates on our loans and have a quick approval process. We have personal loans to cater to your needs. Talk to us and we will help you fill out an online application!

About the Author

With over 5,756 5-star Google reviews and counting since our inception in 2010, Galaxy Credit is more than well-equipped to share our insights on all aspects of loans, both through the content we publish and in conversations with borrowers.

The post What Documents Do I Need To Apply For A Personal Loan? appeared first on Licensed Moneylender Singapore.

Looking for a fast loan in Singapore but not sure where to start? You’re not alone! Although the number of Singaporeans opting for fast loans has increased these days, especially in the aftermath of a pandemic, many remain skeptical about the validity of these quick financial solutions.

But we are here to share with you all the important points you need to be aware of before applying for a fast loan in Singapore, and yes, it’s legal! So if you’re pressed for cash, here are 6 things you should know before taking a fast personal loan.

1. Interest rates for a fast loan aren’t always high

We’re sure you’ve heard financial horror stories of how interest rates crippled one’s finances or ruined relationships. It’s fair, given there is no such a thing as “free money”, so there must be a catch, right?

Well, not exactly.

A high interest rate is not the standard of a fast loan in Singapore. The amount of interest you pay is tied to your credit score, income status, and general repayment capacity.

This means that private lender interest rates aren’t pre-determined but rather calculated based on the information you provide and the type of loan you need. In addition, Singapore’s Ministry of Law dictates the interest rates legal money lenders in Singapore can charge — which cannot exceed 4% per month.

2. Pay attention to other fees involved

When applying for a fast loan in Singapore, interest rates are not the only fees you need to pay. Besides interest rates, the aggregate cost of a fast loan includes other fees, such as processing fees, late repayment fees, etc.

So while you are considering to take out a fast loan, do your due diligence and figure out what it will cost you every month, and if the overall costs outweigh the short-term benefits.

3. Watch out for scammers

Money lending can be helpful when you need it, but it is also a cesspool. Hence, take extra caution when looking to borrow money in Singapore, the money lender you choose to engage with should be under Ministry of Law’s list of licensed lenders.

Remember when we mentioned how there is no “free money”? When a moneylender promises something that seems too good to be true, it is most likely a loan scam. Some examples of “too good” scenarios:

• Promising a hefty amount of cash without needing to check your credit history
• Asking you to make an upfront payment to facilitate loan approval
• No apparent website or proof of physical address
• Using urgent messages such as “offer expires today”

As a rule of thumb, any trusted lenders should be registered under the Ministry of Law. While fast loans are relatively easy to obtain, do still conduct your own research and take some time to consider your options before proceeding.

4. Fast loans are accessible to foreigners in Singapore

It’s not easy making a living in an expensive city and it is even more challenging for foreigners who are trying to survive, let alone thrive locally. If you are a foreigner looking to apply for a fast loan in Singapore, here’s the good news.

Licensed moneylenders offer quick cash options for non-locals, including expatriates, foreign students, and legal immigrants. Here are the eligibility criteria to apply:

• Over 18 years
• Employed full-time with a valid Singapore work pass, including eligible foreign students
• Residing in Singapore
• Having an income

5. A salaried job is not required

Contrary to popular belief, you don’t have to be on payroll for you to access a fast loan in Singapore. Unlike banks, licensed moneylenders have a flexible metric for assessing those who meet set requirements.

As much as a stable income is a key determinant of how fast your application will be approved, it doesn’t have to be a permanent staff position. Freelancers, entrepreneurs, and retirees are still part of the fast loan equation.

6. You can still get a fast loan with bad credit

Even if you possess a bad credit report, you can still obtain a fast loan in Singapore. This is one of the key advantages of borrowing from licensed moneylenders instead of banks. In a sense, it is more flexible and you have lower chances of loan rejection. That being said, it is still recommended to research on the moneylending company you intend to borrow from before applying.

At Galaxy Credit, our loan officers are dedicated to listening and understanding your situation before guiding you to the best personal loan option for your financial needs. Talk to us about applying for a fast loan in Singapore!

About the Author

With over 5,756 5-star Google reviews and counting since our inception in 2010, Galaxy Credit is more than well-equipped to share our insights on all aspects of loans, both through the content we publish and in conversations with borrowers.

The post 6 Things To Know About Getting A Fast Loan In Singapore appeared first on Licensed Moneylender Singapore.

Are you planning to apply for a credit loan in Singapore? The terms of your loan, such as interest rates offered, may be affected by your credit score – so if you have been taking multiple loans or if you have not been repaying your loans on time, do take note.

We will share more about the factors that could affect your credit score and the impact they could have on your loan, regardless of whether you are applying for a bank credit loan or with a licensed money lender.

What is a credit score?

Your credit score is an important determining factor when you apply for a bank loan. The score comes in the form of a number between 1000 and 2000. It is used as an indicator of how likely you would repay your loan. The higher the credit score, the less of a credit risk you are deemed to be.

If you have low credit risk, you may be offered a larger loan principal, a low interest personal loan, and/or a longer repayment period. The lender may even waive some fees and charges if you have a good credit score.

In Singapore, the calculation of credit scores is done by an independent body known as the Credit Bureau Singapore (CBS). This table summarises the relationship between credit score and probability of default, along with the corresponding risk grade:

Banks and other major lending institutions will obtain your credit score using the CBS Credit Report when you apply for a credit loan. You can also obtain your credit report directly from CBS even if you are not applying for a loan.

What are the key factors that affect your credit score?

Your credit score is affected by several factors and these are the 5 most important ones. By understanding how they work, you will be able to improve your credit score.

1. Payment history

Your payment history is a good indicator of your trustworthiness as a borrower. Credit loan applicants with no previous defaults and who have always made payments on time are seen as reliable borrowers. Lenders will usually offer them the best terms as a ‘reward’ and incentive for responsible past financial behaviour.

2. Length of credit history

Every lender wants to know their customer’s financial history to minimise the chances of approving a bad credit loan in Singapore. If you have been in the workforce for many years and have credit card records, credit loan records for personal loans, car loans, mortgage payments, and other related records, lenders would look at these before they decide on your loan application. Younger Singaporeans and expatriates who lack this financial history could be perceived to be at a higher risk of default.

3. Credit utilisation

Credit utilisation is the proportion of the credit limit you have already accessed. For example, someone with a $20,000 credit limit who has taken a credit loan of $5,000 has a credit utilisation of 25%. A high credit utilisation figure indicates a high level of debt. Credit utilisation of less than 20% is best and you should strive to never exceed 30%.

4. New credit

New credit refers to recent applications for loans, credit cards, etc, by the same person. A sharp increase in the amount of new credit can be a red flag for lenders, even if the applicant does not exceed the 20% to 30% ideal credit utilisation range. Instead of applying for several credit lines within a short period, pace your applications over an extended time.

5. Credit mix

A good credit mix means that the loan applicant has a diverse range of credit lines. For example, the typical borrower might have a home mortgage, car loan, two or three credit cards, and possibly a personal loan. It shows that the person is living a balanced life with typical obligations. Conversely, someone with no home or car but only a string of loan applications may appear to be living a financially risky life.

How does a good credit score affect your credit loan?

A good credit score is a strong financial asset. Here are 5 reasons why you should try to improve your credit score before you apply for a credit loan.

1. Loan approval

A good credit score assures a lender that you are likely to repay your loan. This assessment as a low-risk borrower means your loan application will have a higher chance of approval if you qualify. It can be tough to get a bad credit loan in Singapore with banks, but you might find it easier to get your loan approved (despite bad credit) with licensed money lenders with less stringent credit checks.

2. Larger loan amount

Another benefit of a high credit score is that lenders would be more open to extending larger loans to you. This can be important if you are making large purchases such as property, vehicles, or tertiary education that requires you to take a larger loan. In this case, there are appropriate loans such as home loans, car loans, and study loans to fund your financial needs accordingly.

3. Lower interest rates

Lower interest rates mean you pay less for the same loan principal over the same loan term. It is like getting a discount for a service even without a sale or promotion. A good credit score helps you save money on interest while enjoying the convenience of a regular loan. Do also note the different types of banks or money lender interest rates and how how they are calculated.

However, be very careful if any financial institution offers you ‘interest-free loans’, as there are often high fees involved.

4. Longer loan tenure

A longer loan tenure allows you to stretch out your payment over a longer period, so you pay less for each instalment. This is a very convenient feature if you are struggling to balance your budget every month.

5. Possibility of fee waiver

While you are not guaranteed a fee waiver simply because of a good credit score, it is certainly a possibility with good lenders. Just like lower interest rates, this is a monetary reward that allows you to save when you borrow.

Tip for borrowers: Remember to compare credit loans between different lenders so you can find the best rates from the best credit loan company that best fits your circumstances.

Get easy approval credit loans with Galaxy Credit

Are you looking for a credit loan but worried about your credit score?

At Galaxy Credit, our loan applications undergo less stringent credit checks as compared to banks, and you may get loan approval even with a bad credit score. We provide a seamless, fast, and secure online application process.

Apply for a loan with us now.

About the Author

Nikki T

Hello! I’m Nikki and I nitpick through all the boring financial data and jargon so you don’t have to!

The post How Can Your Credit Loan Be Affected By Your Credit Score? appeared first on Licensed Moneylender Singapore.

Financial obligations are one of the most common reasons for anxiety among Singaporeans. This is true regardless of race, religion, age, or even socioeconomic status. But there are ways to overcome financial stress while taking control of your finances.

Consider applying for a personal loan

A loan may seem like an additional financial burden but it can be exactly what you need, with proper financial goals in place. The first thing to do is find the best personal loan that licensed moneylenders have to offer. Here are some tips to help you find the best personal loan in Singapore that suits you most:

1. Compare loan interest rates – The size of a moneylending business does not determine its interest rates. Research and compare all lenders to find the lowest rates.
2. Compare fees and charges – Fees and charges can add up to more than the interest on a loan. Read the fine print to avoid surprises.
3. Look for repayment flexibility – Flexibility helps to minimise fees and charges, as well as provide ample repayment time.
4. Find an Equated Monthly Instalment (EMI) you can afford – A reasonable EMI lets you repay the loan quickly without overwhelming your budget.
5. Examine other loan possibilities – Getting an informal loan from friends or family, selling off unwanted items, or doing a second job can be a good option.

A word of caution, though. Don’t ever take a personal loan from illegitimate lenders. They may offer you attractive terms at the start but often become aggressive later on.

Make your money work for you

Most of us have some money stashed away in our savings accounts but there’s a saying “Do not put your eggs in one basket” and this applies to our finances as well.

Investing can be a daunting affair especially when you are starting with zero knowledge. However, keeping your hard-earned money in savings alone will subject it to further depreciation due to inflation, only adding to your money woes. To counter this, take that risky step and invest intelligently. Research the most reliable companies in promising sectors.

If you have a really good business idea, why not use the best personal loan in Singapore to get it off the ground?

Take care of your health

The old saying that ‘health is wealth’ is absolutely true. Now that you have some idea about personal loans and potentially starting your first investment, this is also the time to take care of your physical and mental health. When the body is healthy, the mind is free to pursue leisure and ideas to earn more money. Financial stress leading to depression is more common than you think so this is a good time to reflect upon what is most important to you about having more money.

A lot of our stress about money comes from the ‘keeping up with the Joneses’ mentality where we want the newest, shiniest thing someone else has. You will eventually find that a lot of the financial anxiety you have will evaporate when you abandon the obsession with consumerism and stop comparing yourself with others.

Other ways to deal with financial stress

Here are four simple things you can do every day in overcoming financial stress:

1. Take a time-out – Sometimes, all you need is a walk and some fresh air to clear your mind and focus on what’s important.
2. Avoid negative thoughts – No matter how dire the situation, there is always a solution.
3. Talk about it – Engage with other like-minded individuals in your circle. It doesn’t have to be about money – even just throwing ideas or perspectives is good stimulation.

Ask for help – Don’t be afraid to ask for help if you need it. It is always better to deal with stress with a support circle rather than manage it alone.

Galaxy Credit offers the best personal loan in Singapore and our happy customers can vouch for that. Give us a call to know more about how we can help improve your financial well-being.

About the Author

Nikki T

Hello! I’m Nikki and I nitpick through all the boring financial data and jargon so you don’t have to!

The post Overcome Financial Stress With The Best Personal Loan In Singapore appeared first on Licensed Moneylender Singapore.

With a slow recovery from the pandemic days, there is no time like the present to make a foray into the private car hire business. This industry has proven its resilience even during multiple lockdowns, hence it is here to stay even as we are slowly recovering and potentially heading into a recession.

So how do you get started in this business? A Grab loan will be a valuable resource to take advantage of. Let’s dive into why you should consider it and how it will be beneficial for you.

Why become a private car hire driver?

First, we need to address the reason why this is a viable money-making option. There has been a significant shift from choosing a taxi driver career in favour of private car hire work among Singaporeans. The simple reason behind it is that rideshare companies such as Grab apply fewer restrictions on their drivers.

Here are the reasons why being a private car hire driver is appealing to some:

1. Independence

Unlike taxi operators, private car hire companies do not set a minimum daily mileage requirement for their drivers. This gives you true independence to work as and when you please, and to change your schedule to suit your circumstances. It is the ideal arrangement for part-time work.

2. Vehicle use

Taxis are painted specifically to be distinguishable and there are strict guidelines against drivers using them for private purposes. When you drive a private hire vehicle, there are no restrictions on how you may use it outside of work.

3. Training time

To obtain a Taxi Driver’s Vocational Licence (TDVL), you need to complete 25 hours of training, which includes 16 hours of classes and 9 hours of self-study. A Private Hire Car Driver’s Vocational Licence (PDVL) course consists of 10 hours of training, of which eight hours are in the classroom and two hours are self-study. You finish the PDVL course and start earning in less time.

4. Course costs

The TDVL course costs $294.25, including training materials. That is almost double the cost of the PDVL course, where training costs just $160.75, including training materials. (The assessment costs for both courses are $25). Note that these prices are excluding GST.

5. Lifestyle preferences

Being cooped up (whether at home or in an office building) can be depressing when you have to do it every single day. A private car hire driver is always on the move, meeting new people, seeing new places, and experiencing new things.

6. Fun career

Many car hire drivers choose the path because it offers them a way to earn money without the stress and pressure of the rat race. All you have to do is drive safely, be respectful of your customers, and get paid at the end of the ride. If you enjoy driving without worrying about having to clock in and out of a 9-6 job, this will seem like a fun ride for you.

Please note that this article contains the latest information from the Land Transport Authority (LTA) as of June 2022. Private car hire drivers are required to be at least 30 years old at the point of application, be a Singapore citizen, and possess a valid Class 3 or 3A Singapore driving licence for a continuous period of at least 1 year.

How can I use my Grab loan?

When most people hear about car hire loans, they assume it is for vehicle purchase or rental. While this is indeed one of the most common reasons that new drivers apply for this loan, it is certainly not the only one.

Grab loans – a part of personal loans – are also popular with drivers who have been working in the industry for years. They often use the loan to cover:

• Ongoing vehicle rental – for periods of sub-par income
• Upgrade to a new vehicle – for potentially better reviews on the Grab app
• Maintenance and repairs – as with any machine, vehicles require regular care and upkeep
• Accidental damages – more time on the road increases the likelihood of damage from accidents
• Miscellaneous expenses – this may include fuel, parking, insurance premiums, and even fines

In light of a pending recession after a pandemic, the demand for food delivery and transportation will always be present. At Galaxy Credit, we’re a legalised money lender in Singapore with personalised financial guidance to help kickstart your journey as a private-hire driver. Get the funds you need to embark on your new career. Get in touch with us today to find out more about our Grab loan and how you can increase your income stream.

About the Author

With over 5,756 5-star Google reviews and counting since our inception in 2010, Galaxy Credit is more than well-equipped to share our insights on all aspects of loans, both through the content we publish and in conversations with borrowers.

The post A Grab Loan May Be The Recession-proof Break You Need appeared first on Licensed Moneylender Singapore.

Low-interest personal loans certainly sound appealing if you need cash urgently. However, anyone who has tried borrowing money knows it is not easy to get a low-interest loan, especially one with the lowest personal loan interest rate.

You can, however, try to shoot for the lowest interest rate personal loan in Singapore by determining whether you’d like to borrow from banks or licensed money lenders in Singapore with the lowest interest rates and following some basic rules.

Here, we share the necessary information you need about low-interest personal loans and the five things you can do to qualify for the lowest personal loan interest rates possible.

What is a low-interest loan?

A low-interest loan is usually a business or personal loan that the loan provider charges at a competitive rate of interest.

The exact interest rate which the loan provider charges a borrower is subjective as it is determined by factors such as your income and credit history. The better your credit history, the higher the chance of the loan provider offering you a lower interest rate.

Where can you get low-interest personal loans?

Another important detail all borrowers should understand is there are two main sources where you can obtain a low-interest personal loan in Singapore — banks and licensed lenders.

Banks

The most common bank loans in Singapore are personal loans, home loans, car loans, and education loans. Bank loan interest rates for personal loans generally vary and change from time to time. As of time of writing, the interest rates start from between 1.90% and 5.42% per annum, depending on the borrower’s income, loan tenure, the principal amount, and the borrower’s creditworthiness.

In case you didn’t already know, banks are very stringent when it comes to their credit checks on borrowers’ credit reports with the Credit Bureau Singapore (CBS).

Bank loans with interest rates close to 1.90% per annum can be an attractive option for someone looking to snag one of the lowest personal loan interest rates, especially if these low-interest personal loans can be coupled with other bank offers and deals.

Licensed lenders

Licensed lenders in Singapore are heavily regulated by the Ministry of Law’s Registry of Moneylenders. Strict controls around moneylending have created a competitive field for the benefit of borrowers. The most important of these controls is the cap on interest rates. Currently, the maximum interest that a licensed lender can charge on all types of personal loans is 4% per month.

There are no lower limits set, but lenders may charge rates as low as 1%, 2% or 3% per month. This may dip even lower with promotional offers and deals for repeat customers. Some applicants may even be eligible for an interest-free loan from the lowest interest rate money lenders in Singapore.

Before licensed lenders can offer applicants these attractively low interest rates, they have to first check with a governing body called the Moneylenders Credit Bureau (MLCB), which stores data on borrowers’ loans and repayment history with all licensed lenders in Singapore. This is done through the Loan Information Report.

What are the requirements for a low-interest personal loan?

Banks

If you are looking to get a personal loan from a major bank, take note of their eligibility requirements.

Firstly, you have to be at least 21-years-old with an annual income of at least S$20,000 a year. If you are a foreigner (with a Work Pass of at least 12 months validity), you will need to earn an income range of S$40,000 to S$60,000 a year.

Secondly, you’ll need to have a solid credit score with good repayment history to boot.

If you make a decent amount of money and have proven yourself to be a financially responsible borrower —as corroborated by your good credit score— banks are more likely to extend their lowest personal loan interest rates to you.

Licensed lenders

The requirements to get a low-interest personal loan from a licensed lender is pretty straightforward. All you need is the application form (which you can fill out online), plus other supporting documents that include:

• NRIC
• Proof of income for the preceding 3 months prior to loan application (e.g. payslips, commission statements, bank statements)
• Income tax statements or CPF contribution statements

These supporting documents are required of foreigners:

• Original valid Work Pass
• Passport
• Proof of income for the preceding 3 months prior to loan application (e.g. payslips)
• Proof of home address (e.g. rental agreement, utility bill, mobile phone bill)

Note: There is no minimum income requirement you need to meet when it comes to loans from licensed lenders.

5 ways to qualify for low-interest personal loans in Singapore

Now that we understand the basics, let’s dive into the five things you can do to get the lowest interest rate personal loan in Singapore possible.

1. Maintain good credit

The single most important thing you can do to qualify for a low-interest personal loan from a licensed lender or a bank is to maintain good credit.

This is different from keeping a good ‘credit score’. Credit scores are allocated by the Credit Bureau Singapore (CBS), and it is only relevant when you apply for loans from a bank or other major financial institutions.

The relevant agency when borrowing money from a licensed lender in Singapore would be the Moneylenders Credit Bureau (MLCB). Lenders will submit your information to the MLCB to check your borrowing limit, existing outstanding loan principal amount with other money lenders, total payable amount, repayment records, and other information when you apply for a loan with them.

Do bear in mind that although MLCB records are considered the primary source of information for a legal lender, your CBS credit score may also be taken into consideration before they approve your loan application.

Below, you’ll discover two simple rules to ensure good credit is maintained:

• Do not default on loan repayments.
• Make instalment payments in full punctually.

Individuals who have had a history of defaulting on their loans may not necessarily be declined a loan from a legal lender. But there’s a greater chance of being offered a higher interest rate as lenders may deem such individuals to have a higher propensity of loan default.

2. Avoid taking multiple loans

When a licensed lender accesses your MLCB records, they can see the number and total value of all your existing unpaid loans. Multiple concurrent loans are an indication that a borrower is under increased financial stress. This often happens when they are taking loans to pay off existing loans to buy time.

Such loan applicants are at higher risk of defaulting and hence are unlikely to qualify for a low-interest personal loan.

Avoid taking on new debt until you have settled older ones. If you need assistance to juggle multiple loans, consider a debt consolidation loan.

3. Maintain a stable source of income

Lenders always consider your employment status when assessing a loan application. Consistent employment indicates a steady income flow and reassures lenders that the applicant is likely to repay their debts, which increases their chances of getting a low-interest rate personal loan.

While a formal full-time job is the best option, lenders will also consider income from part-time and casual employment. The COVID-19 pandemic has also led to many lenders relaxing their borrowers’ employment criteria.

4. Get a co-signer or guarantor

A co-signer or guarantor is someone who agrees to be responsible for repaying a loan. They do not receive any money from the loan but are legally responsible for its repayment if the borrower is unable to make repayment.

A co-signer with a good credit score can help you qualify for low-interest rate personal loans and even other fee waivers.

However, do not treat a co-signer as a blank cheque. A default on your part will damage their credit score and likely create greater damage to your relationship with them. If anything, be stringent about repaying a co-signed loan and handle your debt responsibly.

5. Compare rates from different lenders

There is no one-size-fits-all ‘best’ loan — banks and licensed money lenders’ interest rates differ from one to another. Different licensed lenders and banks offer varying loan eligibility criteria and conditions using their own assessment methods. An applicant’s unique financial status, the reason for the loan, loan history, and other factors could lead to one lender offering lower rates than the other.

Your responsibility to yourself as a borrower is to compare quotes from as many licensed lenders and banks as possible. This goes beyond simply reading advertised rates. You must read the fine print to understand all the fees, penalties, and additional expenses that may apply.

It’ll be worth the effort to get their loan quotes and packages for comparison purposes if your ultimate aim is to borrow from one of the lowest interest rate money lenders in Singapore!

Why consider borrowing from money lenders?

Like it or not, bank loans aren’t created for everyone. With their slew of strict eligibility and income requirements, many may not qualify for the lower-interest rate loans from banks.

If and when you find yourself in such a situation, legal lenders can be a great alternative loan provider to look at for your fund needs — licensed lenders’ loans are highly accessible and through and through legal.

Even though the interest rates that they can offer to borrowers are relatively higher compared to banks’, their rendition of low-interest personal loans in Singapore —coupled with speedy loan application, processing and disbursement— can be an absolute godsend to people in need of urgent funding.

How much can you borrow from the lowest interest rate money lender in Singapore?

If you are going for a personal loan from a licensed lender, the maximum amount you can borrow on an unsecured loan across all licensed lenders at any one time depends on your annual salary.

Based on the Ministry of Law’s guide to borrowing from money lenders, you can only borrow up to S$3,000 if your annual income is below S$20,000, and if you happen to be a Singapore Citizen or PR. You may borrow up to 6 times your monthly salary if you earn S$20,000 or more annually.

Are you a foreigner living and working in Singapore? If so, the maximum amount you can borrow at any one time is S$500 if you earn less than S$10,000 a year, and S$3,000 if you make at least S$10,000 but less than S$20,000 a year. You may borrow up to 6 times your monthly salary if you earn S$20,000 or more a year.

Here’s a quick glance at the summarised information for your perusal:

Galaxy Credit offers accessible, competitive personal loans

Looking for some of the lowest interest rate personal loans offered by money lenders? Galaxy Credit can help. We are a licensed loan company in Singapore with years of experience offering accessible, low-interest personal loans.

As one of the best licensed lenders in Singapore, we make the effort to understand your financial concerns and are committed to offering the best rates and repayment schedules for your circumstances. Contact us for more information or apply online with us anytime you’re ready!

About the Author

Nikki T

Hello! I’m Nikki and I nitpick through all the boring financial data and jargon so you don’t have to!

The post How To Qualify For Low-Interest Personal Loans in Singapore appeared first on Licensed Moneylender Singapore.

You have received your paycheck for the month and are on track to paying off your monthly expenses with it. Suddenly your car breaks down or an unexpected household expense crops up, and you’re left with a huge dent in your budget. What do you do?

Good thing a payday loan in Singapore exists for this very purpose.

What Is A Payday Loan?

First off, what is a payday loan? It is a short-term, unsecured loan with a high interest rate that we can use to cover rent, bills, along with other emergencies before the next payday. Normally, you can get a payday loan in Singapore as long as you have a stable job with a fixed monthly income and a bank account.

Payday loans do not work like traditional bank loans that usually advertise lending 2 to 3 times the monthly salary. Rather, the maximum amount that you can get with a payday loan is equivalent to your monthly income.

Before you consider a payday loan, it is beneficial to take a look at the pros and cons.

Pros Of Taking Out A Payday Loan

A payday loan in Singapore is quite similar to taking out a traditional loan. The key difference is it is designed for short-term borrowing i.e. less than a month, and you have to pay it back quickly. As long as you follow the rules of repayment before the due date, payday loans can help get you through temporary cash problems.

1. You Get Cash Quickly

The point of payday loans is obtaining fast cash, usually in less than 24 hours. Compare this with a traditional bank loan that can take several working days for processing and cash disbursement.

2. It is Safe and Legal

Provided you deal with an authorised money lender in Singapore, payday loans are safe and completely legal. Unlike loan sharks, all legal lenders in Singapore are regulated by the Ministry of Law and there is a list of licensed lenders you can refer to before deciding on one.

3. You Do Not Need to Have A Good Credit Score

The reason why the loan approval rates for traditional bank loans take so long is because they require a thorough search of your financial background since it is an unsecured loan. However, licensed moneylenders in Singapore are not too concerned with your credit health when approving your payday loan.

Cons Of Taking Out A Payday Loan

Of course, it’s not all good news. Here are some less desirable factors of a payday loan.

1. High Interest Rates

If you think that credit card interest rates are the highest, think again. Payday loans attract about the same interest rates as credit cards but in this instance, the repayment duration is a one-time repayment amount due on your next payday.

2. Probability Of A Vicious Financial Cycle

If you are not careful, payday loans can ruin your financial future. Even after paying off your last payday loan, you might find yourself in another sticky situation that prompts another loan. If this becomes a habitual quick solution, you can be staring down a black hole of financial uncertainty and piling on more debt in the long run.

3. You Can Destroy Your Credit Score

Just because payday loan lenders do not run credit checks does not mean that they do not report non-repayment or late payment of the loan. If you fall behind on your payday loan payment, the default payment or debt can be seen through the Moneylenders Credit Bureau report, which will then ruin your credit score just like with any other loan.

All in all, taking out a payday loan in Singapore is still a good bet, provided that you plan your finances carefully, and refrain from treating it as a constant quick way out. Using payday loans wisely can be a life-saving option and positive financial reinforcement. However, use them as a last resort and when you absolutely need to.

If you are considering a payday loan, our loan officers are always ready to offer the best loan solutions. Contact us today for a consultation!

About the Author

With over 5,756 5-star Google reviews and counting since our inception in 2010, Galaxy Credit is more than well-equipped to share our insights on all aspects of loans, both through the content we publish and in conversations with borrowers.

The post The Pros And Cons Of Taking Out A Payday Loan In Singapore appeared first on Licensed Moneylender Singapore.