Top 6 Things you Should Know Before you Lend Money from the Financial Institution
One of the countries that rank high in the standard of living is Singapore. When you need to sustain here, you need to be financially strong. There are lots of expenses like medical bills, grocery bills, wedding costs, consolidate and even some unexpected expenses. Not all the times you move smoothly and handle these expenses. Sometimes, you should have some other additional financial support as well.
Here, the financial institutes or the money lender are the only solutions to rescue you from these financial circumstances. However, you need to consider certain things when you are lending money from them. Continue reading to find what you need to consider before lending money.
1. Know about the interest rates
When you are borrowing the money, you will be given some time and you need to pay it back with some interest to the money lender. The interest that you pay will be the profit for the company. Not all the companies will offer loans with the same rate of interest and this will vary based on the loans you get. When you choose the reputed company, they will follow the rules and regulations as per the norms in Singapore. So, the rate of interest will be reasonable.
2. Know about the credit score
A credit score is the most important thing when it comes to any activities related to financial aspects. The score will be out of 1000 and when you are maintaining them above 700, you will be considered under the green portion and these financial institutions will offer all the benefits to lend money with ease. When you have them below 300, you will be considered under the red portion. Under this condition, it is hard to lend money. The intermediate portion is also safe, but will some percentage of risk. Also, when you lend them money and miss the payments, your credit score will keep getting reduced.
3. Know the amount of money you need
This might seem to be the most obvious question, but you should have an answer for it before you opt for the loan. The financial institution will initially ask you about the need for the money and what are the costs required. The moneylender will make some research over your needs through the documents and some will even visit your home directly. Remember that money lending is cautious and prudent where you need to be very careful in every move.
4. Decide about the collateral
When the financial institution is lending money, it will look for some security from you as the amount is too high. Unfortunately, when the borrower defaults on the loan, the collateral will be considered by the financial institution. Based on the sum of money you get a loan, the collateral will differ. Right from the processing of the loan till you repay the loan completely, the documents of the collateral will be under the custody of the financial institution. When the borrower follows the rule and regulations properly and pays off the loans in the right dues, the collateral will not be untouched.
5. Know about the required documents
When you need to avail of the loan, there are certain documents that you must produce to the financial institutions. It includes a proof for income and employment. This will make sure that the borrowers have a source to repay the borrowed money. The second is the current credit score and past CPF statement. This document is significant to ensure that the borrower is good in the financial moves.
The interest and the possibility to get the loan will be based on the score present in the credit score documents. Next comes the residential proof and this is to know the residential address and so it will easy for the communication at the necessary times. The final one is the NRIC, which is the strong evidence that you belong to Singapore or a permanent resident of Singapore.
6.Know about the financial institution or the money lender
It is very important to know about the financial institution. They should be licensed one in the country as you are dealing with the financial aspects. Also, know about the entire process that the company would follow right from the loan process to the final settlement of the loan. Most importantly, do not forget to read and follow the terms and conditions framed by them to be on the safer side. For instance, just go through the sites of financial institutions like Crawfort and this will help you to locate the right one for your financial needs.
Time to avail of your loans now!
Hopefully, you might have gone through the important thing to avail of the loan in Singapore. Remember that loan will be under huge cost and you need to deal with them so appropriate to make it hassle-free. Just make all the necessary measures to know about the loan and make value out of it!