Your ambitions are linked to the financial resources you have at your disposal. Did you want to provide a better life for your children? Did you take a risk and invest in various ventures? Did you acquire goods and services that contributed to your professional development? Then, most probably, you resorted to the financial packages offered by traditional banking institutions or private lenders.
However, there might be a problem. Have your financial obligations become challenging to manage? Would you like to simplify the process of paying your monthly instalments? If so, one of the wisest decisions you can make is to utilize a debt consolidation plan from a money lender.
Why should you be interested in DCL? First, you must think about the long-term economic benefits. A debt consolidation loan will come with an interest fee that will most likely be more favourable than your existing loans.
Moreover, DCL financial packages usually have a lower administration fee than other types of loans. So, the DCL will save you a couple of thousands of dollars at the end of the credit package repayment period. Nonetheless, the main reason you should turn to a debt consolidation plan from a money lender is the order that such a credit can bring to your financial planning.
It’s a Straightforward Solution
Are you managing multiple loans simultaneously? Do you find it challenging to keep track of your financial duties? If so, a DCL could be a practical and cost-effective tool. At their basic, debt consolidation loans are credits with a value equal to that of the financial obligations you are managing, which can be used to simplify the process of repaying them.
In other words, the private lender you call will grant you a loan with a value equal to your existing loans. You will pay the respective financial packages with the borrowed sum. Then the newly taken credit will have to be repaid in a set time interval at an interest rate that is usually more favourable.
DCLs are advantageous, as they can lead to monetary savings and significantly simplify financial obligation administration. However, these are not the only benefits. Have you experienced problems meeting your financial obligations in the past? Have you fallen behind on your payments? Has your credit score dropped below the ideal value of 1900? In such a case, a debt consolidation plan from a money lender will be an effective way to build your credit back.
An Excellent Way to Achieve Long-Term Financial Security
By reducing the number of outstanding accounts in your name, the report prepared by the Credit Bureau of Singapore could undergo positive changes and make you more likely to obtain credit packages with higher risks for creditors. Not least, merging multiple credit packages into a single payment can reduce your stress and potentially be a way to get out of debt faster.
Singapore has a steady economic growth. However, it is at the same time a place where the average household debt has reached 53% of the country’s nominal GDP. For most Singaporeans, credit packages have become a part of daily living, as most people, at one point or another, utilize either the services of traditional banking institutions or the ones of private money lenders.
Using a debt consolidation plan from a money lender may be the only realistic way to get the financial influx needed for your projects. Besides DCLs, private Singaporean lenders can offer various credit packages ranging from renovations and education loans to payday credits and collateral-bound packages designed for SMEs.
What Are the Eligibility Criteria for a Loan in Singapore?
Credit applicants must be at least 21 years old and either a citizen or permanent resident of our country or a foreign worker with a valid employment visa. As for the minimum income, the criteria for granting unsecured loans are flexible and accessible to most of the population. In Singapore, the median income for full-time work is a little over $5,000 per month, resulting in an annual wage of around $60,000 annually.
However, the minimum yearly salary required to be eligible for an unsecured loan, as prescribed by the Ministry of Law, is $10,000. Therefore, as long as the credit report is not disastrous, most SG residents are eligible for loans.
However, there is a limit on the maximum amount you can borrow for unsecured loans. Do you earn more than $20,000 per year? In that case, you are limited to a maximum of six times your monthly wage. As for companies, the lending criteria are somewhat stricter.
Firms wishing to obtain a business loan must be registered with the Accounting and Corporate Regulatory Authority of Singapore and be at least 30% owned by a Singaporean citizen or permanent resident. Most lenders will also require the company to have been active in the national market for at least one year, meet certain annual revenue thresholds, and submit a business plan supported by comprehensive data.
What Documentation Is Necessary?
The answer to this question will depend on the credit package you wish to access. Are you interested in a personal loan? Do you want to access a debt consolidation plan from a money lender? If that’s the case, the first document you will need to present is your NRIC card. Are you a foreign worker? If so, the lender you are applying to will need your employment pass. Contrary to popular belief, a copy of your passport is not usually required when applying for an SG loan.
Moreover, you will need to provide proof of your income streams. And here, the latest NOA from the IRAS should suffice. However, if you’ve been employed at your current job for less than six months, then the licensed private lender may ask you for a copy of your work contract.
Not least, for personal secured or unsecured loans, you’ll need to submit proof of residence and bank statements from the last three or six months, which will be analyzed to identify your inbound expenses. It’s also important to note that the lender you call must request a report from the Credit Bureau of Singapore.
Everything checks out? Then, the money will be disbursed on the spot. Things are similar but not quite identical for business loans. Are you interested in a credit package designed for SMEs? If so, submit your ACRA business profile and the firm’s Certificate of Incorporation.
Additionally, the financial lender will probably request proof of your corporate activity, bank statements dating back a couple of months, previous tax returns, and the personal information of the business directors. Obtaining a loan in Singapore is not difficult. Plus, the rights of borrowers are ensured by the Ministry of Law.
