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.

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.

Cryptocurrency is all the rage these days, with terms like crypto millionaires and NFTs (non-fungible tokens) on everyone’s lips. Since most people like quick cash, investing in crypto is something we might have considered.

In this article, we explain what exactly Crypto is, its risks and benefits, and whether you should invest in it. If you are looking to make some quick cash to either pay loans or increase your net worth, crypto could be an option.

What is Cryptocurrency?

A cryptocurrency is a form of payment that can be exchanged online for goods and services. The most famous of them is Bitcoin, which was invented in 2009 by an anonymous person. It works via blockchain technology, which transmits data and records transactions. Also, cryptocurrencies are decentralised, which means they are outside the authority of governments and banks.

Many companies, including a few Singaporean ones such as Crypto.com and StraitsX, issue their own cryptocurrency, also called tokens, which can be used to buy goods or services that the said company provides. There are currently more than 10,000 different cryptocurrencies being traded publicly. All cryptocurrencies also have the same value in every country and there are no exchange rates.

How can you hold Cryptocurrencies?

There are three main ways to hold cryptocurrencies. All involve having a “wallet”, which is an account that holds your crypto.

Exchanges

Firstly, you can hold them on exchanges such as Binance or Coinbase. On such platforms, you will be issued a “hosted wallet”, so-called because these platforms hold the wallet.

Non-custodial wallet

A “non-custodial” wallet allows you to have full control over your crypto. The downside is that if you lose your password, the wallet is gone forever.

Hardware wallet

Unlike the previous two options, a “hardware wallet” is a physical device the size of a thumb drive that stores your crypto. The upside is that you cannot be hacked since this is offline, with the downside being an inconvenience.

How do you make money out of Cryptocurrencies?

Much like stocks, the value of your portfolio increases when the price of the crypto token/s you hold rises, and vice versa. In other words, you make money when you sell the crypto tokens at a profit.

Cryptocurrency risks

As with all investments, there are risks. Crypto is known to be more volatile than stocks or gold, which is why it would be good to keep a healthy capital at bay so that you may buy more when it drops and sell when it’s at a higher price.

No sure-win crypto token

Although there are many established tokens with reputable companies behind them, the market is very competitive, with many tokens getting unlisted every few months. If you happen to hold such tokens, you lose all their value.

Vulnerability to hacks and criminal activities

For example, if your crypto is stored on an exchange, hackers can hack into your account and transfer your assets to their accounts. You may or may not be able to recover your crypto tokens — some are traceable while others are untraceable.

Scams

These tokens are often either hyped-up to offer extremely good services, such as giving you a percentage of their earnings, or entice you to invest by a tactic called “pump and dump”. “Pump and dump” happens when a token suddenly rises many times in value, attracting you to buy at an already high price. Once enough people buy at a said high price, the manipulators will “dump” the price by selling all their tokens, leaving you at a great loss. You may end up needing to pay loans that you have borrowed to buy such tokens looking for quick cash.

Cryptocurrency benefits

Many see cryptocurrencies as the currency of the future. We may end up using coins like Ethereum or Bitcoin to pay our monthly bills, or to procure certain products or services. Hence, buying these coins may be considered a long-term investment.

Get cash quickly

There is indeed such a thing as making quick cash. In May 2020, Bitcoin’s price was about USD 9,500. In May 2022, it was hovering around the USD 31,000 mark, though, in July 2022, it went down to around USD 19,000. Many coins have grown exponentially over just a few days, such as DogeCoin, which often pumps dramatically due to a tweet from billionaire and Dogecoin fan Elon Musk.

Advancing technology

The technology behind crypto, blockchain, is also why many people believe in digital currency. This technology is touted to be able to revolutionise industries from shipping to gaming. Having many believers and potential, many investors believe that cryptocurrency is not a fad and will only become more important as time goes on.

High liquidity

Some cryptocurrencies have high liquidity. This means that you can sell or buy them very quickly at market price. For example, if you need money to pay loans, you can simply liquidate your tokens for fiat, which is a term for real-world money.

Should You Invest In Crypto?

It depends if it is within your means. It is important to remember to never invest more than what you could comfortably afford to lose.

Investing in crypto can be an option to diversify your portfolio, which is always a good thing. This is especially true if you believe in the technology behind the tokens that you buy, and also that crypto usage will become more widespread as time goes by. However, do take note that the MAS discourages the general public from engaging in cryptocurrency trading as it is “highly risky”.

Bent on snagging some tokens right now but lack the funds? You might want to consider borrowing a relatively small sum from Galaxy Credit, a 24-hour money lender in Singapore. Our loan applications can be submitted at any time of the day, which is followed by an in-person interview for verification and loan approval. We’re an authorised money lender in Singapore that provides a variety of loans with attractive interest rates. If a loan is what you’re looking for in your Crypto journey, we’re here to help. As it stands, nobody said you have to invest a tonne of money into cryptocurrency for potentially big wins!

About the Author

Weetee Neu

Weetee Neu is a writer based in Singapore. He has written for MediaCorp, SPH magazines, Tripzilla and others.

The post Is Cryptocurrency A Worthy Investment To Consider? appeared first on Licensed Moneylender Singapore.

Whether you’re living alone or with loved ones, the space we call home is sacred. It’s where we relax, play, rest, and form relationships outside of work.

Renovations are a great way of beautifying these spaces and increasing our quality of life. However, it can be expensive and we might have to consider taking out a loan. It is important to consider renovation loan interest rates when deciding on which option to take.

In this article, we compare renovation loan interest rates offered by banks with those offered by licensed moneylenders in Singapore.

Renovation Loan From Banks

In general, some banks charge monthly interest fees based on the outstanding balance, whereas others base it on the total amount borrowed. Also, tenures (amount of time you’re given to repay a loan) given by banks are normally at a maximum of only 5 years, and the maximum renovation loan amount is typically 6 times your monthly wages at a cap of $30,000.

To qualify for a renovation loan from banks, you are usually required to

1. Own a property.
2. Be a Singaporean Citizen or PR.
3. Fulfil minimum income requirement as determined by each bank.
4. Be in a certain age range.
5. Have an acceptable credit score.

Other than these criteria, one other important limitation is that banks normally determine what the loan can be used for. For instance, most banks do not allow the loan to be used for purchasing furniture.

Renovation Loan Interest Rates For Banks

Here are five renovation loan interest rates from popular banks.

1. POSB Renovation Loan

One of the more popular renovation loans from banks, its selling point is its lower-income requirement of $24,000 per annum.

The interest rate starts from 3.88% p.a. for the Green Renovation Loan, up to 4.18% p.a for a standard renovation loan.

2. OCBC Renovation Loan

The OCBC renovation loan boasts a simple online process, with a fast loan approval within 60 seconds and loan disbursements within 5 working days.

The interest rate is at 4.18% p.a. with flexible repayment of up to five years.

OCBC also offers the Eco Care Renovation Loan. This requires your home to be energy efficient as verified by the Tropical Home Energy Efficiency Assessment (THEEA). If you qualify for this loan, you stand to enjoy a lower interest rate of 3.98% p.a., along with other benefits.

3. Maybank Renovation Loan

Maybank’s interest rate is much lower if you are already an existing Home Loan customer.

The interest rate for existing Home Loan customers is at 2.88% p.a.

The interest rate for new customers is at 4.10% p.a.

The application process is fully online and can be auto-filled using your Singpass account, which makes for a seamless process.

4. DBS Renovation Loan

The terms of DBS’s renovation loan are quite similar to POSB.

The interest rate is at 4.18% p.a.

However, if you fulfil the requirements for their DBS Green Renovation Loan (POSB also offers a similar one), the interest rate can go as low as 3.88% p.a.

5. RHB Renovation Loan

RHB’s interest rates are higher than other banks. However, it offers a unique refurbishing loan that most other banks do not.

The interest rate is at 5.80% p.a.

Here’s a table summary of the bank interest rates for renovation loans (p.a.):

Renovation Loan From Licensed Moneylenders

A more flexible renovation loan option is using licensed moneylenders. A reputable moneylender goes a long way in ensuring you are borrowing safely and legally. These loans are generally kinder in terms of requirements, which may sometimes be a hindrance when borrowing from banks.

In addition, renovation loans from licensed moneylenders can be used for a myriad of home improvement works, including plumbing, electrical works, painting, and the purchase of furniture.

Renovation Loan Interest Rates for Licensed Moneylenders

Besides having more flexible requirements, the renovation loan interest rates for licensed moneylenders can be higher than banks, but with equally, if not more flexible repayment terms. Galaxy Credit is one such example. Registered with the Ministry of Law, they provide the best loan deals for customers along with simple, fast approvals.

Most licensed moneylenders offer interest rates of up to 4.0% per month, but Galaxy Credit’s renovation loan boasts a much lower interest rate, starting from 2.27% flat interest per month because the firm understands just how expensive home renovations can get.

With transparent service and professional customer support in mind, you will be assured of a customised loan package that you can channel towards building your ideal home. Talk to a loan expert about your borrowing options today.

About the Author

Weetee Neu

Weetee Neu is a writer based in Singapore. He has written for MediaCorp, SPH magazines, Tripzilla and others.

The post Renovation Loan Interest Rates: Banks vs Licensed Moneylenders appeared first on Licensed Moneylender Singapore.

Besides banks, a moneylending company is a specific financial service provider that will lend you money based on your income and credit history. If you are looking for a loan, then moneylending companies are good options to consider.

However, it is important to note that a moneylending company will have relatively high interest rates, but it will be able to provide you with the necessary funds based on your monthly income.

As with all other personal loan applications, a licensed money lender needs to go through a processing and approval time frame but the good news is you can apply for a loan online and it’s a relatively easy process. Besides personal loans, a moneylending company in Singapore also provides business loans. But do your due diligence and ensure you are signing up only with the best licensed lenders.

Loan amount

The loan amount you can obtain from a moneylending company will depend on your monthly income and credit history, although the latter isn’t as important compared to if you were to apply for a bank loan. A moneylending company offers various loans with different purposes to consider and they come with their respective loan amounts.

The typical loan limit can amount to six times your monthly salary. Therefore, when you apply for a loan, make sure that the loan you choose is based on your financial situation and needs.

If you would like to check your credit report, you can get a copy from the Credit Bureau Singapore. You can also read our post for more information on obtaining your credit report.

Repayment period

The repayment period will depend on the type of loan that you have applied for. Short-term loans may have repayment periods of up to three months, while long-term loans may have repayment periods of up to 12 months.

It is important to note that if you’re seeking a relatively lower interest rate, you could look for a smaller loan with a longer repayment period.

Interest Rate

The interest rate charged by a moneylending company in Singapore will depend on the type of loan that you choose. It is important to note that there are personal loans and business loans, and both types of loans will have different interest rates. Also, interest rates for short-term loans will be higher than for long-term loans. Therefore, if you would like to save as much money as possible per month, consider applying for a long-term loan. For example, the interest rate of a long-term loan can be as low as 1% per month while that for a short-term loan is usually in the range of 3-4% per month.

Finally, remember that if you would like a low interest rate personal loan, you must ensure that you have a good credit history and high income.

Do also ensure that you know the interest rate and repayment period for each type of loan. This will help you to decide on the best loan for your needs, as well as the most suitable moneylending company to get a loan from.

With these three things in mind, you can now decide on a moneylending company in Singapore. Galaxy Credit offers one of the best personal loans with relatively low-interest rates and specialises in payday loans, study loans to further your studies, loans for private car hire drivers, and debt consolidation services. Speak to our loan officers today and receive a free consultation on how to better manage financial stress.

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 3 Things To Know When Choosing A Moneylending Company 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.

In our fast-paced society, paying off debts and mortgages within a shorter period can make a huge impact on our financial freedom. Refinancing a mortgage or a debt consolidation loan not only saves you money but also helps take charge of your finances more effectively.

Before going through the process, it is important to understand how they work. Debt consolidation combines multiple debts, usually high-interest credit card bills, into a fixed monthly payment and could effectively help reduce your debts and pay them off at a lower interest rate. Refinancing your mortgage into a debt consolidation loan also combines your debts into a sole payment. Essentially, both can be great options to strengthen an individual or a company’s finances as they usually offer better terms to pay off loans. Here’s how you can structure your finances intelligently with these loans.

Debt consolidation loan

A debt consolidation is a form of loan provided by authorised money lenders which combines all of your existing loans into one.

It can be a good option if:

• You want to keep track of all your debts through a single channel without any sudden surprises.
• You have substantial high-interest debts and are struggling with monthly repayments.
• You want to work towards paying off your existing loans in totality. A debt consolidation loan gives you an end date by which your loan will be paid off.

Overall, a debt consolidation loan is advantageous in streamlining your finances, and subsequently improving your credit rating by paying off multiple lines of credit, thereby reducing the credit utilisation rate reflected in your credit report. Additionally, since they tend to have lower interest rates, you might end up paying off your debts earlier and saving more on interests in the long run.

Mortgage refinancing

When you refinance a mortgage, you are replacing your current mortgage with a new one, typically with a different set of terms that are better in the long run. It also consolidates your debts by combining your high-interest debts into this new mortgage, thus your new mortgage will consist of your original mortgage plus the non-mortgage debt.

It can be a good option if:

• You want to simplify your debts, making them easier to keep track of and eventually pay off.
• You have a fixed budget to limit non-mortgage debt in the future, which essentially saves you money.
• You want to shorten your mortgage length. Refinancing your mortgage can help you shorten your mortgage length and get the most for your home as it helps you to build equity faster, giving you more options for your home.
• You want a lower monthly interest rate because that would mean lower payments, which means you’ll pay less for your home overall.

The Best Money Lender in Ang Mo Kio

To consolidate your debt effectively, a licensed money lender can be just what you need. The best money lenders in Singapore offer competitive loans, are under government regulations, with high approval rates, and lower interest terms. You should consider choosing a licensed money lender you can trust, as the first step to being debt-free starts with having the right financial partner who can offer you the best solutions.

Ready to take charge of your finances with a debt consolidation loan? Contact us today and take the first step to be debt-free.

About the Author

Clio Goh

Armed with years of experience crafting content for brands and companies across industries, Clio is ever-passionate about putting out top-notch, well-researched personal finance pieces that seek to educate.

The post Should I Get A Debt Consolidation Loan Or Mortgage Financing? appeared first on Licensed Moneylender Singapore.

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.

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.

Key Takeaways

• Licensed money lenders in Singapore follow strict regulations, and while they can charge late fees and interest, they must employ legal and fair recovery methods — intimidation or harassment is not allowed.
• Missed repayments are recorded in your Moneylender Credit Bureau (MLCB) report and may affect your ability to borrow from licensed money lenders in the future.
• If you are unable to pay your licensed money lender, early communication, repayment restructuring, and financial support services can help you avoid escalation and manage your debt responsibly.

Borrowing money can feel like a lifeline when unexpected expenses arise, whether it’s medical bills, home repairs, or a temporary drop in income. But what happens if you suddenly find yourself unable to pay a money lender in Singapore?

The situation can feel overwhelming, and it’s easy to spiral into a state of panic. However, understanding the consequences, your legal rights, and the practical steps you can take will help you regain control of your finances and avoid unnecessary stress.

In this article, we’ll cover the essentials of borrowing from licensed money lenders, the impact of late payments, whether a money lender can file a case in court, as well as the strategies and support available to help you navigate financial difficulties.

Understanding Moneylending in Singapore

What Is a Licensed Money Lender?

Not all lenders are the same. In Singapore, moneylending is strictly regulated under the Moneylenders Act 2008. Only lenders who hold a licence issued by the Ministry of Law (MinLaw) are legally allowed to offer loans to the public. These licensed lenders must follow strict rules to ensure transparency and fairness.

A licensed money lender must provide a clear loan contract, cap interest rates and fees in accordance with the law, and follow proper debt collection procedures. Borrowing from a licensed lender ensures that you are protected, unlike borrowing from unlicensed or illegal lenders (often referred to as loan sharks), who may employ threats or intimidation when recovering debts.

Understanding Your Loan Agreement

Whenever you take out a loan, you sign a contract outlining the terms. This document specifies the loan amount, interest rate, repayment schedule, and penalties for late payment to a licensed money lender. It is legally binding, which means that once you sign, you are obligated to fulfil the repayment terms.

Licensed money lenders have clear limits on what they can charge. Interest rates are capped at 4% per month for non-business loans. The late interest rate is capped similarly, and late fees of at most S$60 per month can be imposed. Administrative fees are permitted but must be reasonable and clearly stated in the contract. Importantly, regulated lenders cannot harass you, hold your identification documents, or engage in any form of intimidation at any point.

Understanding these terms is crucial, especially if you anticipate difficulty in making repayments. Being informed gives you the power to take the proper steps before the situation escalates.

Consequences of Being Unable to Pay a Money Lender in Singapore

Falling behind on a loan has multiple layers of consequences: financial, credit-related, and legal. Let’s break them down.

Fees and Penalties

The first consequence of missed payments is financial. Licensed money lenders are permitted to charge late interest on overdue amounts, capped at 4% per month, along with late fees up to a maximum of S$60 per month. Administrative or processing fees may also apply, depending on your loan agreement.

Although these amounts might seem manageable, they add up quickly. A small overdue repayment can grow into a significantly larger sum if interest and fees continue to accumulate. The longer a payment is delayed, the heavier the financial burden becomes.

Impact on Your Credit Report

Even though licensed money lenders do not focus on your CBS credit score like traditional banks do, your borrowing and repayment history with regulated money lenders is closely monitored through the Moneylender Credit Bureau (MLCB). Every loan application, repayment record, and outstanding debt is stored in this system, which serves as a reference for all licensed money lenders in Singapore.

If you are unable to pay your money lender in Singapore, these defaults are recorded in your MLCB credit report. A pattern of late payments or a history of unpaid loans can signal risk to lenders, prompting them to exercise greater caution when approving new loans. Even if you eventually repay the debt, repeated delays or long-standing outstanding balances may result in future loan applications being rejected or approved only for smaller amounts.

In practical terms, your repayment behaviour — not your credit score — directly affects your ability to borrow from licensed money lenders in the future. Maintaining a consistent record of timely repayments helps demonstrate financial responsibility and preserves your credibility within the regulated moneylending system. Conversely, a poor record may limit your borrowing options, making it more difficult to access funds when needed.

Risk of Escalation to Legal Action

If payments continue to be missed despite payment reminders and formal requests via a letter of demand, lenders may escalate the matter legally. A licensed money lender has the right to file a civil claim in court to recover unpaid debts. However, this process is strictly regulated — lenders cannot harass or intimidate borrowers, and all actions must follow legal procedures.

Can a Money Lender File a Case in Court?

Many borrowers worry about the possibility of being sued. Yes, a licensed money lender can file a case in court if you default, but it’s important to understand the context. Legal action is usually a last resort after attempts at communication and negotiation have failed. The lender must follow due process, and borrowers have the right to contest the claim in court.

Defaulting on a loan does not constitute a criminal offence, and licensed lenders cannot use intimidation, threats, or harassment to force repayment. Knowing this can help you approach the situation calmly and take practical steps to resolve it.

Understanding the Court Process

The court process for debt recovery generally follows a predictable path. It begins with reminders and letters from the lender. If these are ignored, the lender may issue a formal letter of demand. Failure to respond can result in a court claim, where the lender may obtain a judgment for the outstanding amount.

Once a judgment is granted, the lender may seek enforcement through garnishment of wages, seizure of assets, or, in extreme cases, bankruptcy proceedings. Understanding this process can help you act early, negotiate solutions, and avoid the stress and costs associated with legal escalation.

What to Do If You’re Unable to Pay Your Money Lender

Recognising that you may be unable to meet your repayment obligations is the first step toward resolving the situation. Acting quickly and responsibly can prevent further financial or legal consequences.

Communicate Early With Your Lender

The most crucial action is to contact your lender as soon as possible. Licensed money lenders generally prefer to work with borrowers to find a solution rather than initiate legal action. Being transparent about your reason for being unable to pay your money lender — whether due to job loss, medical emergencies, or reduced income — can open the door to renegotiated repayment terms.

Possible solutions include temporarily reducing your monthly payments, extending the repayment period, or arranging a short-term payment holiday. Always ensure that any revised agreement is documented in writing, with the new terms specified clearly. Keeping a record of all communications can protect you in case of disputes.

Explore Debt Management Strategies

In addition to negotiating with your lender, consider broader debt management strategies. Reviewing your budget to prioritise essential expenses and repayments is a practical first step, and cutting non-essential spending can free up resources for debt repayment.

For those with multiple debts, debt consolidation may be a viable option. This involves combining several loans into a single repayment plan, often at a lower interest rate. This can be done through a bank or financial institution, provided you meet their eligibility criteria and understand associated fees. Some licensed lenders also offer debt consolidation loans.

It is crucial to avoid unregulated lending as a solution. Borrowing from illegal money lenders or taking high-interest informal loans to repay an existing loan can trap you in a debt cycle that is even harder to escape. Ignoring the debt altogether is also not an option, as it can result in increasing interest, fees, and potential legal action.

Seek Support and Resources

You are not alone if you are struggling to repay a money lender. There are various resources available in Singapore to help borrowers manage debt and regain financial stability.

Financial Counselling and Education

Organisations such as Credit  Counselling  Singapore (CCS) provide professional counselling for individuals facing unsecured debt. Their services include reviewing your income and expenses, helping you assess what you can realistically repay, and working with you to explore suitable repayment arrangements. Consider seeking their help if you are struggling with both debts from banks and licensed lenders.

If you are only dealing with licensed money lender debts, seek assistance from voluntary welfare organisations. They will be more than happy to provide you with guidance and a helping hand.

Meanwhile, MoneySense and its outreach arm, the Institute  for  Financial  Literacy, offer free education and workshops aimed at helping Singaporeans build budget‑planning and money‑management skills, so they are better prepared and informed when it comes to borrowing and repaying.

Government Assistance Programs

If your financial hardship stems from job loss, illness, caregiving responsibilities or other extraordinary circumstances, you may be eligible for temporary support from government schemes such as ComCare’s Short‑to‑Medium Term Assistance. These help with living expenses or employment support so you can stabilise your situation.

It’s essential to note that while these grants and subsidies provide vital relief, they do not replace or directly repay your loan obligations with a money lender.

Conclusion

Being unable to pay a money lender in Singapore can be stressful, but there are options to manage the situation. Licensed money lenders operate under strict regulations, and while they can pursue legal action for unpaid debts, borrowers have rights and access to support resources. Communicating early, exploring repayment restructuring options, and seeking professional guidance can prevent escalation, protect your credit record, and help you regain control of your finances — and life.

Searching for reliable and transparent solutions for instant loans, wedding loans, renovation loans, payday loans and more? Look no further than Galaxy Credit, a trusted licensed money lender in Singapore that offers flexible loan options tailored to your needs. Apply now or contact Galaxy Credit today to explore how our customised plans can help you manage your loan comfortably and achieve a stable financial future.

The post What Happens if You Are Unable to Pay a Money Lender in Singapore? appeared first on Licensed Moneylender Singapore.