Things You Should Know about Money Lender Singapore Interest Rate

Posted by winds on June 4th, 2018

Singapore has many different money lenders. Currently, you can access private loans from banks quickly as the acceptance process at times takes hours or a day to get completed. Singapore has about 160 licensed money lenders that provide loans to individuals who have difficulty getting loans from banks. Nevertheless, the licensed money lender Singapore interest rate offers the loans at a higher interest compared to banks and thus it is important to know what you're getting into before applying for a loan.

All about Money Lender Singapore Interest Rate

· The government instituted a 4% cap on monthly interest rates but licensed money lenders can charge you up to double the rate of interest when compared with credit card debt.

· Basically, a bank offers loans at an interest of 1% per month while licensed money lenders offers loans at 4% per month interest.

· When you borrow 0 from a licensed money lender, you'll be required to pay an interest of I one month. However, while this rate may not seem exorbitant, failure to pay the loan immediately could lead to additional fees and interests that could amount into tens of thousands of dollars. You could end up paying as much as your first loan of 0.

· Typically, licensed money lenders target those borrowers which were foregone by the bank because of having a bad credit history.

· Licensed money lenders offer small sized loans of around ,500 for individuals making less than ,000 per year. Furthermore, most licensed moneylenders lend 24% less than your monthly income.

· With all factors taken into account, banks charge an interest rate of between 5% and 7% per year while licensed money lenders charge 30-40% interest per month.

Nonetheless you can pursue other options like credit card debt or personal loans.