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5 Considerations Before Applying For A Loan

When you haven’t attained financial freedom, it can be easy to take up loans. However, there are some considerations that you need to make before taking up a loan. When you need money you can easily fall victim to loan sharks. Therefore, consider being careful before agreeing to any terms.

Also, you need to know how to differentiate between legit moneylenders and loan sharks who at times don’t even care about your well-being. They only care about you agreeing to take the loan and then demanding it aggressively afterward.

To be on the safer side always take up a loan from a licensed moneylender like SU Credit company. Do thorough research to settle on the best moneylender with the best interest rate and repayment plan.

1.      Your Credit Score

Your credit score or credit history gives any lender confidence that you can be able to pay up a loan on time without any kind of delays. The better your credit score, the better chances you have of getting the loans.

Therefore, always strive to take up a loan from one money lending company and pay on time. At times, if you take up too many loans from different money lending companies you may be termed clumsy. The interest rate will increase with time, and you might even find it hard to pay it back on time.

You can also consider debt consolidation to have all your debts in place and pay them one by one. Also, when you get a loan, always check the interest rate so that you can determine whether you can pay the loan on time to prevent loan defaults that will affect your credit score.

If you have a poor credit score, discuss with the moneylenders to give you a loan regardless with enough evidence that you will pay on time.

2.      Current Income

Before taking up a loan, check your income. Can you comfortably pay up the loan and have enough money left for your monthly expenses? If the money is too little, then consider taking up a smaller loan that will make it easier for you to pay it without straining too much.

Also, if you have just lost your job, don’t take up a loan that you know you won’t be able to pay on time if you don’t get a job soon. You will also need to provide proof of income before you are given a loan.

Therefore, ensure you provide enough proof for the company to trust you. The bank statements will play a huge role in showing your income range and the moneylender will have confidence in you.

3.     The Debt Payments Requirement

It is vital to settle on the debt payments that you will need to make each month. Therefore, try and evaluate different licensed money lending companies and the repayment period they give for their loans and the interest rates.

Most loan application processes are simple, and you won’t sweat when doing it.  You can choose from different loan types like personal loans, business loans, and unsecured loans.

Also, try to check the terms and conditions on the website so that you don’t miss out on an important detail that may be used against you when you default payment.

4.      Interest Rates

If possible, before you take up a loan try and use a calculator to see the amount that you will pay when you take up a loan of a certain amount. This is to prevent you from being caught off guard. Also, don’t be in a rush to just settle on a moneylender, do your research well to get the best deals in your region.

Just ensure there are no hidden fees. Good money lending companies will show you the fees that you will pay upfront before getting the loan. So it will be easier to make a decision. Also, check the length of the loans to see whether your financial position will allow you to pay the debt on time. It also depends on your financial position.

In the case that you took a student loan, you are assured that you will be given a longer time to pay the loan unlike when you get a loan when employed. Also, try to check whether the company offers any sort of interest discounts and at what point.

5.      Your Financial Situation

Another thing to consider is your financial situation. What amount do you need to cater to your needs? It won’t be fair if you take up a loan that won’t cater to all your needs. Try to have a write-up of all your financial needs so that when you request money you get the whole of it.

That’s why it is important to know how much you use in a month to make it easier to know the money you need for a certain period. Also, what are your monetary habits? Are you the kind who pays loans on time?

This will help make it easier to pay for loans on time. Also, try to avoid excessive use of credit and maintain a low balance. Furthermore, always review the credit reports regularly and dispute any issues on them.

Conclusion

A moneylender always checks your credit, income status, employment status, debt to income ratio, the value of the collateral if you are taking up a secured loan, and any other assets. Therefore, if you have expensive assets, consider thinking twice before actually taking a loan that may make you lose a really valuable asset.

These assets may include a car, home, business assets, and other valuable equipment. Therefore, always ensure you consider everything before approaching a reliable money lending company. Also, research is really important if you want to get the best deals and associate with an amazing money lending company.

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Your Comprehensive Money Lender in Singapore Guide

There is no denying that many of us will need loans at some time in our lives. But deciding which loans to take and from whom might be a challenging decision.

The most obvious option that comes to people’s minds is a bank loan. However, several people face trouble getting a loan from a government-authorized bank. It could be because of poor creditworthiness, red-tapism, or anything else.

The best approach in this situation might be to contact a private Singapore moneylender. Depending on your needs or the purpose of the loan, licensed money lenders offer a variety of loan options.

We’ll go over a few points in this blog post that you should be aware of before you apply for a loan from a licensed money lender in Singapore.

How Can You Find a Licenced Money Lender In Singapore?

Taking loans in emergency cases is no more an uncommon scenario. We frequently turn to money lenders in difficult circumstances as an easier, more feasible option to borrow money.

It’s true: when you need a quick loan, a licensed Singapore money lender can save your life. Unfortunately, the illegal business of loan sharks masquerading as money lenders has expanded quickly in recent years. These loan sharks are infamous for their harsh business tactics, which include threatening borrowers and charging high-interest rates.

Hence, if you’re looking for a loan from a lender, you need to understand the distinction between a legitimate money lender and a loan shark. You may learn who to trust and who to be on the watch for by using the following seven guidelines –

1.    Licensed Money Lenders Require You to Sign a Contract

According to the law, each borrower must attach their signature to a document binding them to the lender. The loan’s terms should be made clear in the contract form. For instance, it needs to include information on the loan’s tenure, amount, interest rate, and processing charge, if any.

Avoid working with a lender if they offer blank papers for signing as the contract document or if they don’t offer any contracts. It is a sure sign that they are not doing business legally.

2.  Licensed Lenders Cannot Charge Interest Rates Above the Market Standards

Beginning on October 1st, 2015, the government set the maximum interest rate limit to 4% per month. A legitimate loan provider won’t charge an interest rate higher than 4%.

On the other hand, loan sharks frequently charge higher rates. Hence, choose a lender with caution. It’s better to run away if you ever receive an offer with an interest rate of more than 4%.

3.  Licensed Lenders Are Listed on the Ministry of Law Website

On the website of the Singapore Ministry of Law, all licensed money lenders are listed. Check the website to see if the money lender is listed if you are in contact with them. If they aren’t, they’re probably loan sharks.

You may read the Money lenders Registry maintained by the Ministry of Law here.

If a licensed lender just got their license and the website hasn’t been updated with their information, they might not be included. Call the ministry at 1800 2255 529 if you think this is the case.

4.  Licensed Lenders Will Always Have a Physical Location

If a lender makes you an offer but does not have a physical office, do not assume it to be legitimate. According to the law of Singapore, all licensed lenders must have offices that are listed on the Ministry of Law website.

Ideally, licensed lenders conduct the majority of their operations from offices. Unlicensed money lenders typically don’t have offices, or if they do, they don’t correspond to the ones listed on the Singapore Ministry of Law website.

5.  Loan Sharks Frequently Use Threats and Abusive Language

One of the obvious signals that you’re dealing with a loan shark is the use of aggressive language and threats.

Before you choose to borrow money from a loan shark in Singapore, you may experience various threats and harassment. These actions will undoubtedly continue once you have done so.

If you do not make repayments on time, they may continue to use scare tactics to get their money and perhaps harm you.

There has been an increase in incidents of harassment by loan sharks in Singapore as unlicensed money lenders are going digital. Take extra caution when you’re browsing for moneylenders online.

6.  Licensed Lenders Will Always Protect Your Personal Information

To guarantee that they have enough information to terrify you with or for future marketing objectives, loan sharks will always try to obtain as much information from you as possible. They frequently use your SingPass login information, and you never know what cunning plan they’ll come up with to reach you. However, when you are applying for a loan from a licensed Singapore money lender, they will only access your SingPass account in your presence to check your income.

7.  Licensed Moneylenders Obey the Law With Advertising Regulations

The Registry of Money Lenders has announced new guidelines that demonstrate the commercial and marketing criteria. These guidelines apply to authorized money lenders. The maximum fine for breaking the law by utilizing illegal media is $20,000, and the license may also be suspended. However, only these three paths are permitted for this:

  • Business or consumer directories in print or online publications
  • The licensed money lender’s official website
  • Postings of advertisements inside the premises of the money lender’s office

If you receive promotional texts or ads from moneylenders, they are probably loan sharks. Stay wary of such advertisements.

Final Words

Singapore has a prevalent loan shark presence. Therefore, you must screen the lenders closely.

Moreover, while there are many licensed Singapore moneylenders, not all offer the same level of service. SU Credit is an authorized money lender offering top-notch customer support. With our wide experience, we have given affordable loans to hundreds of customers. Our loan agents ensure a seamless, quick loan approval process.Submit your details with us and get a quote today.

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Guide to Borrowing Personal Loans from Money Lenders in Singapore

Singapore is a potential country, bearing opportunities in abundance. However, it is also a bit expensive. It can be challenging to pay off all your debts and obligations without getting financial help. Not to mention, medical bills, wedding expenses, travel spend, operational expenses, university fees, and other emergencies can break the bank.

If there isn’t enough money in the savings to cover these urgent obligations, your only choice is to apply for a personal loan from a Singaporean credit institution. Banks typically have a more lengthy and strict approval process, which may not be useful if you need immediate cash. Therefore, moneylenders are quite prevalent in Singapore.

In this blog, we present a comprehensive guide to help you understand how you can get a loan in Singapore.

How to Borrow Personal Loans from Moneylenders in Singapore?

Borrowing Personal Loans from Licensed Money Lenders

Licensed money lenders provide loans to Singaporeans holding valid employment permits, permanent residents, and immigrants living in Singapore. They have registered businesses, which hold approval from the Ministry of Law and obey the Moneylenders Act as well as Ministry set norms and regulations.

How Do We Identify If a Moneylender in Singapore is Licensed?

Make a list of the moneylenders you want to borrow from, and then take the time to check their legality before requesting a loan. It is highly recommended that you go to the lender’s website and verify it thoroughly. There are various cases where scammers use borrowers’ personal information for illegal purposes by portraying themselves as licensed moneylenders.

It is forbidden in Singapore for a licensed moneylender to make loan solicitations over the phone, through text messaging, or on social media. They must follow the rules established by the Ministry of Law and avoid activities prohibited for a licensed moneylender.

A Singaporean licensed moneylender is not allowed to engage in the following activities:

  • Find your SingPass ID or password by phishing.
  • Not returning your passport, NRIC, and other crucial personal identity documents.
  • Demanding the sign on an incomplete or blank loan agreement.
  • Approving your loan without disclosing the conditions in detail.
  • Providing loans over the phone or text messages.

So if someone contrasts any of these parameters, think twice before applying for a loan from them or even better avoid dealing with them.

Ensure the Licensed Money Lender Shares Their Physical Address

If a moneylender has a physical business address, you can consider them licensed. But it is crucial to do a physical verification.

Therefore, if you are receiving personal loan approval without visiting a moneylender’s physical location, you may be dealing with a loan shark.

Additionally, receiving a loan and agreeing to meet up in an unidentified location raises red flags.

Make Sure You Receive the Required Documents

While submitting a loan application, the lender asks you to provide documents to verify your identity. Remember that licensed moneylenders always return your NRIC and other personal identity documents once they review them. Do not leave your original documents with them, even if they ask. In case they ask, it is a red flag.

You’ll also receive a loan contract from moneylenders. They ask you to go through each term in the loan contract and explain it to you before signing it. All essential info, such as the interest rate, the terms of repayment, and the repayment period, should be included in the loan contract.

Unlawful Advertising

Licensed money lenders aren’t allowed to advertise themselves on social media. They are only permitted to display adverts on their website, business or consumer directories, or their registered place of business. So if some moneylender is advertising otherwise, they may be involved in some illegal activities.

Elevated Interest Rates

The Ministry of Law’s approved maximum interest rate is 48% per year or 4% monthly. Both the nominal interest rate (loan amount) and the late interest rate are subject to this cap. Take into account that the late interest rates apply to the amount that is past due and not the entire amount that is still owed but not yet due.

Beware of excessively high-interest rates. If a moneylender is quoting freakishly high charges, it’s probably an unlicensed moneylender or a loan shark. Both of them are a no go!

What You Must Do Before Borrowing a Loan From a Singapore Licensed Moneylender?

Choose the Type of Loan You Require from a Licensed Moneylender

Before applying for a personal loan from a moneylender in Singapore, assess your finances to determine the type of loan you should pick. Ask yourself: Is your situation more of a minor or severe emergency?

Personal loans are the best option for minor emergencies that just need a small amount of money. They are also appropriate for settling bills, paying credit card debt, or remodelling your property.

Request Your Credit Report

To get a better understanding of your credit score, you can purchase a credit report from the Moneylenders Credit Bureau (MLCB) or the Credit Bureau Singapore (CBS).

Some licensed moneylenders in Singapore refuse to accept loans to borrowers with poor credit scores, even though many do not verify a borrower’s credit report, particularly for personal loans.

If you have a poor credit rating, it’s best to improve your credit score before applying for a loan.

Make Sure You’re Eligible

Verify your eligibility for the type of loan you are borrowing. Remember that the maximum loan amount you can receive from registered moneylenders in Singapore depends on your annual income and citizenship.

Before Visiting a Licensed Moneylender Office, Gather All Your Necessary Documents

Gather all the documentation you’ll need to apply for the loan. It consists of:

  • NRIC as evidence of income and employment
  • Credit score at the now and previous CPF statements
  • Residency proof
  • A lease agreement, employment letter, work permit, and bank statements (for foreigners).
  • Licensed moneylenders typically approve unsecured loans, such as personal loans, based on your annual income rather than your credit history. For this reason, lenders typically need payslips to check your capacity to repay the loan.

Are You Looking to Get a Loan from a Reputable, Licensed Money Lender in Singapore?

At SU Credit Pte Ltd, we believe that unforeseen financial obstacles should never prevent you from achieving your goals. We provide our customers with excellent service and hassle-free loans. Contact us, and our experts will address all your needs with our precisely crafted loan packages.

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What Will Happen If You Don’t Repay Your Loan?

People take loans for several reasons — from financial emergencies to medical expenses to home renovations to honeymoon budgets. If you’re taking a loan, it’s probably because you’re low on your savings. However, it should always be a kind of loan you are in a position to repay.

When you take a loan, repaying it is usually the last thing on your mind. Even moneylenders in Singapore make your loan approval process quick and convenient these days. However, just because you get loans in Singapore easily doesn’t mean you can afford to be careless with them.

While defaulting on your loan may look like an easy way out (thanks to the wrong portrayal in movies and shows), it is a major financial headache in real life. In all seriousness, not repaying your loan can affect your life goals.

In this blog, let’s go over what happens if you don’t repay your loan in detail.

5 Serious Consequences of Not Repaying Your Loan

1.    Legal Proceedings

You sign a contract when you get a loan, and that is a legally binding contract that holds you obliged to repay the loan. So if you fail to repay your loan, your licensed moneylender can take legal action against you. They can issue letters of demand from a lawyer or file a lawsuit suing you for the outstanding debt.

Financial institutions usually initiate legal proceedings if they suspect you have the money to repay but are willingly becoming a defaulter. If your loan payment instalment is due for more than 30 days, you will first receive a legal warning. Institutions can take action against you sooner if they think you’re up to something fishy.

2.  Collateral Loss

If you took a secured loan, such as home mortgages, car loans, or business loans, you pledged your valuable assets as collateral to the financial institutions. If you fail to repay your secured loan, moneylenders may seize your collateral to recoup their losses.

3.  Money Seized from Account

If you take an unsecured loan, you don’t have to pledge collateral. Thus financial institutions can’t seize your assets. However, if you have money in your bank account, the institution can seize that and use it to repay your loan.

However, it largely depends on the financial institution in question and the terms and conditions involved. Therefore, before you sign off on your loan documents, check the details and read everything.

4.  Employment Issues

Your credit reports show everything about your loan history. If you didn’trepay your loans, it will show that. If your debt was written off and you didn’t settle it, the default will be on your credit report forever.

Generally, potential employers cannot check your credit report. However, they can request to see it. Lately, finance companies have been doing so to ensure they do not hire people who are in debt or didn’t repay loans. It is either seen as a sign of irresponsibility or suggests your finances will affect your work efficiency.

5.  No Future Loans

Banks go through your entire credit report before providing you with a loan. Unlike banks, moneylenders do not base your loan approval solely on your credit score. Still, failing to repay your loan can affect your probability of getting a future loan.

Every loan application has to go through the Moneylender Credit Bureau (MLCB). It stores information, such as your borrowing limit, unpaid loans, and repayment history. The database will show your missed loan payments. If your data shows a long history of failing to repay your loan on time or still having outstanding debt, the moneylender is likely to reject your application.

What Can Moneylenders Do?

Loan sharks are quite prevalent in Singapore. Several times, people take loans from unlicensed and illegal moneylenders in emergencies. Since they have unusually high-interest rates, borrowers often fail to repay their loans. As a result, loan sharks take to illegal ways to get their money back.

Therefore, it is vital to know what licensed moneylenders can do in case you fail to repay your loan. Have a look –

  • Moneylenders can mail you a letter of demand for the missed instalments.
  • They can visit your home (and as a last resort, your office) to deliver a letter of demand.
  • During reasonable hours, they can try to contact you by phone or text message.
  • They can take legal action against you.

What Can Moneylenders Not Do?

When you research the best moneylenders in Singapore, ensure you shortlist the licensed ones. Licensed moneylenders are governed under the Moneylenders Act. Thus they need to abide by certain regulations and laws. They cannot resort to illegal activities, unlike unlicensed moneylenders.

Oftentimes, moneylenders hire debt collection agencies to collect money owed to them by the borrowers. However, even agencies have to comply with the regulations.

Here is a glimpse of the code of conduct and good practices that licensed moneylenders and debt collectors have to comply with. They cannot –

  • Try to injure you
  • Intimidate, threaten, or harass you, and/or your family members
  • Stalk you or your family members
  • Assemble you unlawfully
  • Damage or vandalize your personal property

If you face any kind of harassment, you are within your rights to take action against the moneylender. You can –

We agree that all the consequences above make it look like everyone should stay away from loans. It’s true to a certain extent — loan repayment is not as easy as it looks. If you don’t have the money now, you need to map out how you will repay the loan.

Therefore, before you commit to a loan, understand the basics of budgeting your expenses. Otherwise, you would land yourself in debt and possibly bankruptcy. Also, it’s vital to understand the difference between good debt and bad debt. Strategic use and proactive planning will help you sail through the financial currents.

If you need a loan, SU Credit Pte Ltd can help you. We offer our clients tailored financial packages and hassle-free loans. Get in touch with our experts today at +65 6636 5644.

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What is a Debt Consolidation Loan?

If you are here, you probably have two or more debts pending repayments. The debts may be from your personal loans, credit card loans, and more from several creditors.

Let’s be frank, debt can stress you. So, what about having different obligations? You’ll have to bow to the high-interest demand while trying to beat the due dates for clearing.

The good thing is a debt consolidation loan is available, and Singaporeans swimming in multiple debts should utilize it!

Without further ado, let’s dive into this article to learn more details about debt consolidation, its benefits, types, and who should use it!

Debt Consolidation Loan – What Does it Entail?

In simplest terms, debt consolidation is merging loans from multiple creditors into one loan under one bank. Once you consolidate these loans, you enjoy a lower interest rate and a well-defined payment plan.

A debt consolidation loan seeks to cover all your high-interest loans to a low-interest one. So, if you have debts on your car, credit card, or student loan, you might want to combine them. You open a single account for these three loans and pay one sole amount monthly instead of making multiple payments geared to clear each of the loans.

If you have many debts, combining them will ensure you stay at the top of your finances. Furthermore, you will likely not miss out on loan repayment, which helps in having a good credit history.

However, remember that debt consolidation does not wipe out your loan balance. Your debt amount remains the same, but at least the interest lowers, so you save a lot on this.

How Does Debt Consolidation Loan Work?

Debt consolidation makes your debt repayment easy. If you owe different lenders money, keeping track of what you’ve already paid and the remaining debts is challenging. You’ll even forget the minimum amount you should pay, which can affect your credit score.

It is a process you can efficiently complete as long as you have all the relevant documents and paperwork to put together the different debts. Then, you need to apply for a debt consolidation loan from alicensed lender. By doing this, the lender or bank typically purchases your pending balances from different creditors.

You, therefore, get a new loan, but this time at a lower interest rate. Now that you have one loan, you enjoy a single due date, too, that’s easy to keep track of. Typically, you need to make fixed monthly repayments with a debt consolidation loan over the loan tenure period.

Who Can Use Debt Consolidation Loan?

For one to be eligible for the debt consolidation loan, they must fulfil the following requirements:

  • Be a Singapore citizen
  • If you are a foreigner, you must be a permanent resident of Singapore with a valid work permit.
  • You must be employed and earning a monthly salary – Now, your lender should stipulate the minimum amount you should be making.
  • You are only eligible for the debt consolidation loan if you have no other plan. You can only have one debt consolidation plan at a time.

To get the debt consolidation loan, you must present certain documents that your lender deems fit. Such may include:

  • Proof of identity
  • Proof of income
  • Proof of residence – foreigners
  • Work permit – Foreigners
  • Payslips

Why Should You Apply for the Debt Consolidation Loan?

1.    To Save on Interest

One significant benefit of a debt consolidation loan is that it allows you to save so much on interest. Interest on credit cards is generally high in Singapore. Therefore, if you can consolidate this loan with others like car loans, you will most likely spend significantly lower interest rates.

2.   You Quickly Repay Outstanding Debt

The goal is to wake up one and realize that you are debt free! However, this is not readily achievable, especially when you have several loans pending. With the right strategy in place, you will repay your debts sooner than you think.

Opting for debt consolidation, especially when you have credit card debt, gives you a timeline within which you ought to have repaid your loan. You now have fixed monthly payments; therefore, you complete paying in a shorter period.

3.   Organize Your Finances

It is, of course, tiresome to keep track of every single repayment you need to make. By consolidating all your loans, you only require to make monthly repayments which is much more convenient.

Also, you pay a fixed amount each time; therefore, you know the amount to set aside every month. Generally, you can plan accordingly based on the amount you’re required to pay each month. This is also an ideal strategy to reduce the chances of late payments.

4.  Allows You to Select Your Loan Tenure

There is a minimum amount to pay monthly in Singapore for credit cards. Failure to do so incurs a penalty.

Now with a debt repayment loan, you have the freedom to select your own loan tenure. Therefore,it’s more practical to pay your debt without anyone rushing you since you set your timing alone. You can opt for a longer-term, which by the way, attracts higher interest rates, or a short one for lower rates – The choice is yours!

Does a Debt Consolidation Loan Affect Your Credit Rating?

To a large extent, yes! However, it will affect in a good way but with a few drawbacks.

A debt consolidation loan is like any other loan you’ve been repaying. It can only improve your credit score rating if you pay on time and all the required amounts.

On the other hand, with a debt consolidation loan, you are likely to get a bad credit rating. This is because credit scores mainly favour longer term loans with consistent repayment. However, your score will improve if you pay your loan in time.

So Go Ahead and Get a Debt Consolidation Loan!

It’s hard to evade loans in Singapore, especially now that the cost of living is skyrocketing. However, as you get the financing, ensure you have a viable plan to repay them. Consolidating all your debts into one is an ideal option to at least seamlessly repay all your existing loans.

AtSu Credit, we provide you with a debt consolidation loan at low-interest rates. Our instalments and timings are reasonable, so you enjoy a hassle-free road to being debt free. Talk to us today to learn more!

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What Should You Do Before Taking a Loan?

Have you ever found yourself living from pay check to pay check? Well, if yes, you’re not alone. This is probably the life of every other Singapore resident!

Saving most times becomes hard when responsibilities hit. You have to strive hard to pay every bill and keep yourself happy. Affording luxury can be a thing of the past when your pay slip barely covers your essential needs.

However, the saviour for most people is loans! This will help you meet your financial obligations easily.

Before taking a loan in Singapore, you need to keep some essential things in mind. This information will help you decide on the right loan, whether to borrow from aprivate loan lender or a bank, and more.

Today’s article takes you through the necessary items you should do before taking a loan! Let’s dive in!

Considering to Take a Loan? Check out these Essential Things!

1.    Assess Your Financial Situation

First, you must check your financial situation before taking a loan. Can you afford to take the loan, and is the timing correct? These are simple but vital questions you should ask yourself before taking a loan.

Loans really come through for us, but only when we are in dire need! Ask yourself whether it is indispensable for you to take the loan or not. If you have valid reasons, then go for it!

Otherwise, if your situation is not urgent, look for other financing options other than loans. You should know that you are increasing your future debt by opting for a loan. Only take a loan when you are sure that you meet all the basic requirements and can manage to repay it seamlessly in the future.

2.  Check Your Credit Score

Your creditworthiness is another crucial factor to consider before taking a loan. It typically determines whether you pay your credit obligations on time.

You have a good credit score and a higher chance of securing a loan. Some lenders also look at your credit score to determine the interest rates to impose on you. You will likely get a loan at lower rates if you have a good score.

3.  DetermineThe Type of Loan

After assessing your financial situation and creditworthiness, determine the type of loan you want. There are many types of loans available in Singapore that you can acquire. You might want apersonal, car,business, payday loan, and more.

So, your exact purpose for taking a loan should determine the kind you acquire. If you want to finance your business, then go for a business loan and if you are looking to purchase a car, go for a car loan. In short, be specific about your demands and understand the different functions of loans available in the market.

4.  Evaluate The Interest Rate

After identifying the specific loan you want, check the interest rates. It determines the overall amount you pay back to your lender after acquiring the loan.

You need to go through different creditors. Check the amount of loan they offer and the interest rates attached to them, then compare. Once you have all the necessary borrowing information, settle for the lender with favourable rates.

5.  Check Whether There Are Hidden Fees?

In addition to the interest rate, you might incur other fees that you ought to know about. The licensed money lenders will charge you an administration fee which you only pay after loan approval.

It’s also important to note that if you are dealing with a legit money lender, they will not ask for an annual fee. Furthermore, they will inform you of any costs you’ll incur in acquiring the loan.

6.  Ascertain on Collateral Requirements

When getting your loan from a licensed lender, you must ask whether you’re required to produce any collateral. It technically acts as a security that you place upon getting a loan.

Majorly collateral will come in the form of a secured loan. It applies to borrowers with a poor credit history. So your lender will demand an asset before giving you the loan just for security in case of loan default.

On the other hand, if you have a good credit score, you will get anunsecured loan. It has no collateral requirements.

7.  Determine When Funds Will be Dispatched

When borrowing, you need to consider the period you will receive your funds. The lender must clearly define when the loan is approved and sent to your account.

Of course, the time taken to deliver the funds to you differs from lender to lender – So find out this information from your bank before applying for the loan.

8.  Determine the Loan Repayment Period

Checking the loan term is a must for any borrower. The time your lender allows you to pay for the loan plays a massive role in determining the amount you’ll eventually pay.

Figure out whether the loan you are about to take is long-term or short-term. In most cases, a long-term loan requires more time to repay and, at the same time, attracts a higher interest rate. Therefore, you end up paying more.

On the other hand, if you choose a short-term loan, it means that you intend to repay it within the shortest time possible. You incur a lesser interest rate, so your overall debt won’t be as much.

You need to check your current financial needs and the situations around you. This will tell you whether you require a longer-term or short-term loan.

9.  Check Instalments Required

Instalments are pretty crucial in loans.

Can you afford the said instalment for the particular loan you are about to take? If you can, well and good. However, if you feel you will struggle to raise the monthly amounts required, opt out of that loan!

Again, your financial situation should guide you in determining whether you can pay the monthly instalments. Remember, failure to pay the loan at any point and time negatively affects your credit score.

Go for a loan only for the right reasons and when you have a payment plan laid out beforehand. Furthermore, ensure that you can rely on your lender to send your money in time, and their interest rates should be favourable.Su Credit will help you in case you require any loan. We guarantee an easy time when accessing a loan from us!

money lending

Differences between a Short-Term Loan and a Long-Term Loan

When you need money, you can either decide to get a long-term loan or a short-term loan. It all depends on the kind of needs that you have. You can get loans from the bank or moneylenders with a fixed repayment period and interest rates.

Most long-term and short-term loans require repayments between 30 days and 30 years. Therefore, you have the flexibility to pay the loan on time. Therefore, if you just need a loan to cater to some immediate needs, you can consider a short-term loan.

However, if you need a loan for bigger things, then you can consider a long-term loan. One of the best money lending companies is SU Credit Company. What are you waiting for?

Dive in to learn more about short-term and long-term loans:

Major Differences between the Short-Term Loans and Long-Term Loans

1.      Financial Loan Amount

Short-term loans are normally a smaller amount and are meant to be paid within a short period as compared to long-term loans. In long-term loans, you can even get funds that you can pay back even after 30 years. 

The smaller the loan amount, the faster you need to pay the loan. The bigger the loan amount, the more time you have to pay up the loan.

Therefore, just sit down and know the amount that you need so that you can decide whether you are getting a short-term loan or a long-term loan.

2.      Interest Rates

The short-term loans comprise fast cash loans or quick cash loans. They are given quickly. Therefore, they tend to come with high-interest rates due to the short repayment period. Also, the short-term loans are unsecured, and you won’t need to provide any collateral to get them.

Therefore, if you apply for a short-term loan you won’t have to give up any assets. On the other hand, long-term loans have a high-interest rate due to the longer period that you will use in repaying the loan.

 It also has a lower risk of non-repayment. Therefore, you are assured of getting the best.

3.      Approval Process by The Moneylender

Well, the approval process differs in banks, money lending companies, and other financial institutions. Therefore, the approval rate may differ.

Since short-term loans are like personal loans, their approval rate is faster as they are needed for urgent financial needs. This is in comparison to long-term loans that require a large loan amount approval.

In long-term loans, you will need to provide more documents than when applying for a short-term loan.  Your loan application will need to qualify for the eligibility criteria before you get your requested amount. 

They also tend to check your creditworthiness to see whether they can trust you with that large amount of money. Since it is a secured loan, they might also do market research on the value of the assets to see whether it is worth giving you the loan.

4.      Duration

Short-term loans need to be paid within a short period. This is because the amount given is little. Therefore, the money lending company assumes that you can be able to pay up the loan on time. This can include payday loans in which you can get money and then pay it back once you get your salary to ensure you cater to the emergencies before your salary comes.

On the other hand, the long-term loan period is a bit longer. It can even reach 30 years depending on the amount of loan that you get for your business, mortgage, personal use or to buy certain assets.

Therefore, even when you get a long-term loan strive to use it for the right reason. Also, you can strategize to see how the money can be distributed within the years or months. It may even be used for a startup, therefore, each month’s profit can help to pay up the loan. However, this is also predeterminant on the money lending company.

5.      Collateral Needed

Short-term loans tend to be unsecured therefore you won’t have to provide collateral to be able to get a loan. Collateral is an asset that you use as insurance for the loan that you get.

Therefore, when you refuse to pay the loan on time, the collateral may be liquidated to pay your loan. Long-term loans are the ones that require the use of collateral. This also motivates individuals to pay up the loan.

This is because if you take up a long-term loan without collateral you might try to run away without paying. However, when there is evidence that you might lose something valuable you will pay on time.

You will ensure you pay the repayment amount each month without fail. Also, remember the interest rate will also be accruing. In some cases, short-term loans may require some indirect collaterals like fixed deposits, invoice subunits, and much more.

6.      Purpose of The Loan

Short-term loans tend to cater to certain operational needs or working capital of businesses. They also cater to other household needs.

This is unlike the long-term loans that you can use in your business expansion or growth strategy for your company. You need to show evidence that you will get an income that will be able to pay up the loan comfortably without fail.

Which Loan Is The Best For You?

Well, depending on your needs, you can determine whether you will take a long-term or short-term loan. However, if you don’t need a loan then don’t take up a loan. However, if you need a loan for the benefit of your business, then you can consider getting a long-term loan.

Just ensure you check your budget and see the kind of money that you need. This is to prevent getting too many loans from different money lending companies.

personal loans

5 Tips When Applying For a Company Loan

A company loan is a type specialized for businesses that need some financing to cater to their needs. This can either be in operational expenses or expansion expenses.

At times, the sales in your company may not be working well, or you need some extra cash for the sake of the growth of the company. This is where the company loan comes in to help.

The company loan can help you to expand your business operations and let them flourish. Also, as you strive to get a company loan, consider using the money for the right reason, minimize your costs, establish other new revenue sources, be transparent, be upfront, and have a good financial plan for the loan that you will get.

Su Credit is an ideal money lending company where you can get the required company loan for the prosperity of your business.

Tips When Applying For A Company Loan

1. Organize All the Documents

When you want to apply for a company loan, ensure that you have all the documents in place. This can include bank statements, financial accounts, tax clearance documents, and other ones. Also, consider your timeline; by when do you need the money? This will help you organize and apply for the loan on time.

Also, you need to discuss with the company’s board of governance to know after how long you will be able to pay back the loan. This will make it easier to apply for a loan that you can comfortably pay in the designated time.

Also, the time duration will determine the kind of company loan that you can get.  Thereby, get a loan that will accommodate everything that you will need for the growth of the company. This is to prevent you from having to go back to the moneylender to get more loans.

While providing this information the lender will know your needs well. You can have the cover letter, collateral, detailed business plan, loan amount & usage, credit history, management team, marketing, and financial statements.

2. Maintain a Good Credit

Good credit will make it easier for you to get a loan. Even when getting a personal loan, the moneylender always checks your credit score to see whether you are in a position to pay it back.

The higher your credit score; the better and more secure your loan will be. Always strive to take up loans that you can pay up comfortably. When you delay paying up the loans, it messes with your credit score hugely.

When you go for a loan the company often takes your credit history to see whether they can trust you. Also, don’t have the habit of taking up many loans from different companies as it can mess with your credit score.

3. Go Through the Different Loan Types

Even though you are settled for the company loan, try and check the different options to see whether you can find something better. Check if there are SME loans, business loans, business capital loans, or suitable company loans.

To be on the safe side, always check the interest rates for the different loans. This will make it easier to know the amount that you will pay back after a certain period and whether you will be able to meet the targets.

Also, when making the application, you can talk with the agent or loan officer to see what’s suitable for you.

4. Determine the Money You Need

Another crucial thing is to determine the amount of money that you need to finance the specific operational cost or project. You need to apply for a loan that will accommodate all your needs. Therefore, ensure you use your financial plan to know whether the loan money will fit your budget.

You can consider getting a loan that is more than your budget. Also, you need to have a consistent cash flow to make the moneylender believe that you can pay up the loan on time.

Also, ensure you organize all those documents to make it easier for the loaning company to give you the money.  In some instances, it will be okay to provide your business plan to get their trust.

5. Check the Eligibility and Apply

You also need to check the eligibility for getting the specific loan and ensure you meet it. Therefore, be careful not to leave any loophole that will make it hard to get the loan. Check the eligibility criteria to be on the safe side.

Also, consider knowing about the lending process and getting the loan from the right credible, licensed moneylender. Take your time before you get any loan because you will need to pay it back and the decisions you make will have an impact.

Also, try and communicate honestly and openly about the issue. Be disciplined in paying the company loan on time. Also, try not to over-commit yourself financially because it can cause a big strain.

Conclusion

Once you qualify to get the loan, ensure you use it for the right purpose and not for bad reasons since you will still need it for the company. This is important if you want your company to prosper.

In many cases, you may find that companies tend to get loans and use them for the wrong decisions. However, when you are disciplined you will use it for the right reasons. Therefore, always prepare your documents upfront, maintain a good credit score, go through the different loan types, determine the money you need, and be careful with the application process.

Also, when you need money never hesitate to take up a loan that will lead to your prosperity. If your company remains stagnant, you are assured that you won’t get enough profit in the long run.

Company Loan

Guides to Borrowing Unsecured Loans in Singapore

Have you ever heard of unsecured loans?  Well, there are both secured and unsecured loans that have different terms. For the unsecured types of loans, you won’t require any kind of collateral to get a loan. However, for secured loans, you will need to have collateral to ensure that you get your loan on time.

In most cases, you find that the secured loan amount tends to be large as compared to the unsecured loans mostly consist of fast cash loans. Some of the most popular secured loans include personal loans, balance transfers, credit card loans, and credit lines.

Unsecured loans won’t require you to give your car or home or any other valuable as collateral in case you are unable to pay the loan on time. One credible loaning company is like SuCredit Moneylending Company. They have great unsecured loans.

What Is An Unsecured Loan?

Well, in short, it is the kind of loan that doesn’t require any kind of collateral, so you can get a loan. However, when getting an unsecured loan, the moneylender will have to look at your credit score to see how well you pay loans. If you delay in paying loans, they might think twice before finding you a loan.

What the Moneylender Will Consider Before Providing An Unsecured Loan

1. Income level

Before any licensed moneylender provides an unsecured loan, they will first check your income level to determine whether you are capable of paying up the loan.

They will check the income you get and check against the amount of loan that you want to get. If they consider it, then you will surely get your loan. Therefore, providing a bank statement will be crucial here.

2. Credit history

Your credit history normally shows how you borrow and pay up loans. Therefore, whenever you are taking up loans, be assured that they are being tracked. Therefore, try and pay up the loans on time to prevent getting disappointment when you want to get an unsecured loan, and it is an emergency.

We often don’t know when emergencies might come and so when we block the only possibilities to get loans – it can be bad. Also, always check your credit score to see how you are faring.

3. Existing debt

Moreover, before you get an unsecured loan, be assured that the money lending company will check whether you have any existing debt before they give you a loan. Your credit history will play a major role in determining this.

They will get to know whether you differ in loan repayments or pay them on time. Luckily when you get the loans, they won’t take up any of the assets even if you delay in payment.

4. Amount you need

Before you get an unsecured loan, the money lending company will also evaluate your application to see the amount of money that you need. Because this is an unsecured loan, you are assured of getting small to moderate loans only.

On the other hand, if you need a bigger loan, you can consider getting a secured loan to cater to bigger deals.

Characteristics of Unsecured Loans

1. Multipurpose

Unsecured loans are multipurpose and can be used for different reasons based on the kind of needs that you have. Therefore, once you get the unsecured loan, you can use it for your own needs without having to be followed by the moneylender on how you are using the money.

You can also use it to consolidate other small debts on other financial institutions to just have one that you can deal with. However, remember to pay it on time.

2. Unsecured loans are flexible

The unsecured loans are flexible, and you won’t have to worry about whether the money lending company will keep following up on how you use the money. You can get them easily, have low interest, and have a fast approval rate.

3. Type of unsecured loans

a) Personal loans

One of the most common unsecured loans is personal loans. It is a general-purpose loan that doesn’t have too much strictness on its use. This is one of the lowest cost options for buying things.

Personal loans are unsecured, general purpose, and require regular payments over a duration.  It is essential if you want to buy something but can’t afford it immediately or raise cash for a purchase deposit.

b) Line of credit

It is also known as the cash line. In this, the bank offers several funds that you can borrow. It is like standby cash. It doesn’t have any fixed repayment term.

The maximum amount that you can borrow is known as your credit limit. Luckily, you won’t be charged any interest until you utilize the line of credit.

c) Credit card installment plan

This is a bit different from personal loans. You take up a loan and make a series of installment payments over a fixed period. It is a bit different from credit card loans.

This works best when you are purchasing an item and get to pay in installments. Thereby you get a loan to pay up the item. It is ideal for credit card holders who don’t want to incur interest charges.

d) Bank transfer

This is the kind of loan that allows borrowers to consolidate all debts from other accounts or credit cards to one credit line or single credit card. It offers very low-interest charges.

It is ideal if you are finding it hard to pay up minimum monthly repayments. Therefore, you decide to just have one large loan.

e) Debt consolidation loan

Another one is the debt consolidation loan which allows you to consolidate all your unsecured loan balances from different financial institutions into one to make it easier to pay.

It is a great way to finish up debts in different institutions. This will also reduce the interest rates that you would have incurred in the different loaning financial institutions

Conclusion

An unsecured loan tends to be a bit different from a secured kind of loan. Therefore, you can consider getting an unsecured loan to cater to your immediate needs.

Also, do thorough research to ensure you get a loan from a credible money lending company to prevent falling victim to loan sharks. Get a reliable loan from SU Credit Company today!

5 Tips When Applying for a Company Loan in Singapore

As you plan to build your business, it’s almost impossible you won’t apply for a loan. As hopeful as you can be that you will get financing, one thing that instantly crushes your dream is – loan rejection. This is something that over 80% of businesses in Singapore experience, and this could be you some time.

What if you can be among the 20% whose loan applications go through? Relieving, right? You need to be on the right track by following the tips we give you when applying for a company loan in Singapore!

Want a Company Loan in Singapore? Check Out the Following Insights for Easy Loan Approval!

To get the loan amount you need for your business, follow the following steps:

1.    Maintain an Outstanding Credit Rating

One thing your lender will surely look at before approving your loan is your credit score. It’s pretty straightforward; if you have an incredible credit score, the loan application process is smooth! Once you apply for the loan, receiving the amount is just a matter of time.

A good credit standing means that you should pay all your bills, avoid bankruptcy, and not apply for multiple loans at once. These are some of the factors that Singapore banks will check before granting you a loan. If everything is in check, you will secure your company loan.

When the score is terrible, you will have to wait longer before the funds are released. You might as well be unable to fund your firm as it commences operations.

2.  Ensure the Timing is Right

You cannot apply for a company loan at any given point in time. There is an ideal time where you will solicit for it and get feedback; otherwise, nothing will go through.

So when exactly can you get a company loan in Singapore?

It’s when your business is doing well. Usually, the first few months of a company starting up are the hardest. You are trying to do what you can to stabilize it. Over 20% of startups fail within the first year of operation for various reasons. Therefore, getting a loan within this time can be challenging.

Do not ask for a loan when your company is less than 12 months old. It’s too early to do this since your lender requires a track record and proof that your business has stable revenues to grant the loan.

So wait until your business is doing well to get support. Consequently, secure the funds early even when you don’t use them at the moment. You can use them when the tough time comes.

3.  Have Current and Upcoming Projects Primed

What does your business prospectus look like? Do you have one? Most businesses ignore this essential aspect forgetting that it’s what most banks will look at before giving them loans.

You should prove to the lenders that you have viable projects and have other upcoming projects in the pipeline. Also, these outlines show that your company is generating income and is doing well. The projects are a sign that your company can stand independently in the coming days.

No one will lend money to a corporation that’s fumbling. Grantors want to work with a business that they are sure will repay the debt within the stipulated time.

However, you can beat this by proving an effective business plan to those lending you money—a powerful layout signal to financial institutions that your business is legit.

Therefore, provide evidence that what your company is doing will make enough to repay the amount. Similarly, explain to the banks how you will utilize their funds for quick application approval.

4.  Get the Right Loan for the Right Reasons

Before contacting your money lender, get the reasons for your company loan right. Most shylocks for company loans in Singapore want to know what you want and why you want the loan. There are multiple selections available for Singapore companies, so you need to check what works best for you at the time.

Your primary aim should be to get the best loan you will not have trouble with while paying. Also, it should be able to cater to what your company requires. In fact, you will definitely get what you want from your banker.

They will stipulate the maximum amount you can get, the applicable interest rates, collateral, repayment terms, and any other helpful information. Scrutinize your options and settle for the one that suits you best. Also, do not forget to get loans with favorable repayment terms.

5.  Pledge a Collateral

Another tip for soliciting company loans in Singapore is getting an indemnity. The first thing that comes to the bank question when lending a certain amount is, will you be able to repay it? If not, how will they recover the loan?

The granters want to ensure that their funds are safe even after you cannot pay them. This pushes them to ask for some “security” and reassurance that you will repay the loan they dish out.

While giving the collateral, most banks will want actual proof of the item. So, they will go through your balance sheet and the statement of cash flows. They determine your fund’s consistency and comprehend the company’s financial strength.

Also, the surety document highlights your personal and business assets. It will show the number of properties, cash, and receivables used as security.

By ascertaining such items, they will know whether the collateral you put in place will be enough to cover the risk in case of loan default. If not, can it be enough for half the risk? If satisfied, they will disburse the money. Otherwise, the requisition won’t happen.

Tip: When skeptical about getting a loan, consult someone with a greater understanding of getting company loans in Singapore. You save time since they will quickly show you the direction to follow and advise you for better chances to secure credit.

Obtaining a company loan in Singapore is not complicated, provided you follow the proper steps. If you want to fund your business, look for a fuss-free company that will listen to your needs and fulfills your desires. Talk to SU Credit for a simple and quick loan application process.

Su Credit, 175 Bencoolen Street #01-36 Burlington Square, Singapore, 189649 Tel: +65 6636 5644