Latest Update for 2017: With the new Government ruling, all money lenders in Singapore are to cap all loans provided at a maximum of 4% interest rate per month. Therefore we urge all borrowers to make full use of this wonderful offer today by applying for an online loan here.
The best advice anyone can give when you are searching for a loan from moneylenders is that it pays to take time to compare lenders before committing to any particular lender. There are many moneylenders in Singapore. Many of them are licensed and registered in the Registry of Moneylenders.
It is easy to identify licensed moneylenders. You simply need to check the Registry of Moneylenders. The list of licensed moneylenders is available from the IPMO website. The challenge comes in determining which moneylender to borrow from. This is where the comparison comes in.
Ways to compare moneylenders
There are several methods you can apply to compare moneylenders. The most common methods used are listed below:
- First hand comparison
This means contacting moneylenders and reviewing the information you get from them. You may decide to visit the moneylenders physically or contact them online. It is best to visit them as they will not give you a lot of information on their rates and other such factors on the phone or online. You will also be able to get firsthand experience of their service when you visit them. This will immediately tell you whether or not you’d like to commit to taking a loan from them.
- Comparison websites
This is the easiest way to get information on moneylenders. These websites offer reviews and compare loan packages from different moneylenders.
- Personal experiences
If you know someone who has borrowed money from a moneylender before, you can ask him/her to recommend a lender to you. Such sources will give you an account of their personal experiences with moneylenders. This will give you the opportunity to determine which moneylenders to avoid and which to approach.
What to look at when comparing moneylenders
- Fees and charges
Many people jump at a loan with low interest and forget that there are additional charges and fees attached to loans. Fees such as loan processing fees and insurance charges for loans will add up to the total costs of the loan. You should therefore factor this in when considering a loan package.
- Term and conditions
It is important to consider the conditions of the loan. Find out about penalties and what happens for late payments. It is important to understand the restrictions and requirements that accompany the loan.
- Interest rates
This is usually the first thing people consider when comparing loans and moneylenders. The interest rate will affect the total amount you pay back. It is therefore important to ensure that you choose a loan with a low interest rate.