A Brief Guide For The First-Time Borrowers In Singapore

1. A Brief Guide For The First-Time Borrowers  In Singapore    Credit companies are a great source to bridge a financial gap. Throughout the years,  lenders and banks have been helping Singaporeans get by. Whether an entrepreneur is  seeking to widen its business or a salaried person wants to buy a car, a loan is a handy  tool to fulfill many objectives. However, taking a loan from credit companies in  Singapore is not an easy option.  Not because there are a number of moneylenders out there and it is a bit difficult to  research for them and choose one. This is because, in the last few years, Singaporeans  are taking too much loans than they can handle and now Singaporean government has  imposed sundry restrictions on taking a loan. And now, if you want to take a loan, you  are required to submit a bunch of documents along with specifying the proper  requirement of the loan and your repayment plan.    Therefore, it is necessary for you to act as a responsible borrower while going for a loan  and it not only means repaying the EMIs on time, but it starts with your selection of the  credit company. 

2. Questions to ask a credit company  1. Are you a licensed moneylender?  Before finalizing a deal with a moneylender or a credit company, you must check the list  of ​licensed moneylenders​ provided by the Monetary Authority of Singapore (MAS) and  the Ministry of Law (MinLaw).  2. How much can I borrow?  MAS has issued guidelines for the new ​Credit Limit Management​ Measure that states  if your salary is below $20,000 annually, you can borrow up to $3,000 and if you earn  more than $20,000 per year, you can borrow as much as six times their monthly  income’s worth.  If you exceed this loan cap, you will be no longer eligible to get an unsecured loan from  any credit company in Singapore. This not only prevents you from borrow more than  you can handle but also helps to manage your finances and maintain a good credit  score.  3. What is the interest rate?  The number of moneylenders is rapidly increasing in the Singapore market and because  they use interest rates as the medium to attract the audience, the ​Monetary Authority  of Singapore​ has announced that a moneylender can charge a maximum of 4% interest  rate per month from a borrower. This means if one month, you fail to pay on time, you  will be charged a maximum of 4% interest on the late payment.  4. What are the terms and conditions?  MInsLaw has clearly instructed every moneylender to be transparent with their terms  and conditions. Therefore, only go with the credit company when they are able to  discuss and explain the important details of the loan contract. Apart from this, it is your 

3. duty to get a clear understanding regarding the terms of the contract, especially  interest rate, fees like processing and late payment and the loan tenure.  5. Do you have flexible loan packages?  The growing needs for​ ​fast cash loans in Singapore​ solutions is the major reason for  the growing number of moneylenders. This is why credit companies are offering  customized EMI options to attract the audience as well as to set up a strong  relationship with the customers. So, you can ask the moneylender you are dealing with  to set the EMI amount according to your budget.  As a responsible borrower, you must first check if the right loan amount has been  disbursed. Being a smart borrower not only gives you the chance to build a positive  relationship with the credit company. You can also build a healthy credit score that you  can use to have better loan offers.  Apart from these questions, you may also focus on how fast is the loan process, what is  the eligibility requirement, etc. to get a more clear understanding about an authentic  moneylender. You should also take appropriate measures like checking the authenticity  of the moneylender on the Registry of Moneylenders website to stay safe from loan  sharks.  If you encounter any wrong practice by any licensed moneylender, you must report it to  the Registry at ​1800-2255-529. 

4. Online Scams That You Have to Aware  About In this digital era, from ordering groceries, lunch or dinner to ordering clothes and from  requesting a cab to booking train and flight tickets, we have an application. On one  hand, it is a very convenient option for us, but on the other, it is a threat too, especially  to our personal information stored on these applications.  While we are using the internet for our convenience, fraudsters are also going  high-tech to steal our personal information and inventing new ways on how they can  get our hard-earned money.    Therefore, you should adopt some preventive measures to keep yourself safe from the  newest ​financial scam schemes​ by getting a clear understanding about them:  PayPal Scam  Since January 2019, the Singapore Police has reported over 40 PayPal scams. The  common thing in all those cases was the scammers used to portray themselves as 

5. interested buyers and proactively contact all those sellers who had posted anything for  sale or rent online.  In this type of scam, the seller receives fake emails from PayPal and related platforms  stating that they have paid for the certain items. The victims had to send proof of  shipments before asking payment receipts. In this whole scenario, the scam scheme  may vary a bit, but all the victims never received any payment.  In order to stay safe from such incidents, you must log on to PayPal accounts to verify  whether you have received any payment or not. It is very easy to fabricate emails,  therefore, it is best to not trust any emails.  ‘Microsoft’ tech support Scam  Over 20 incidents have been reported in this year. To effectively execute this scam,  fraudsters send a pop-up message to the victims stating that their system is hacked  and their personal information is at risk. To make it more realistic, they mention a  toll-free number along with the name of the company like ​Wetechconsultants,  Microsoft or Apple​. This had convinced the victims to call the number and ask for the  resolution.  The moment they call these fake representatives for resolutions, they are asked to  download an application or provide remote access of their computers. There they gain  every detail about the victim and then made unauthorized transactions with their  debit/credit card credentials​. This is one of the most common ​banking and credit card  scams​. Therefore, it is very necessary for you to take all the preventive measures to  keep your hard-earned money safe.  The police advised to ignore these types of messages and never call the suspected  toll-free numbers. Never panic. Call the company’s official customer service hotline to  confirm the message.   

6. Phishing Emails  Fraudsters use fake emails to pose as Traffic Police. These emails contain a strong  evidence that the victim must pay parking charges via credit/debit card and appear in  court on a specific date. The message also contains a website link and a phone number  on which the victim can verify the incident.  Therefore, the ​Singapore Police Force​ had clarified that the government agencies will  never ask for payments through unsecured ways. They also never involve a third  party’s bank account when collecting fines. The police advised the public to be cautious  when responding to emails. Government agencies never send such emails to the public.  Ignore suspicious emails, website links, and social media accounts.  What to do if you receive such emails?  If you receive any suspicious email, call the anti-scam helpline at ​1800-722-6688​ or  you can also visit at ​www.scamalert.sg​ to file a complaint. Moreover, you can also call  the police helpline at ​1800-255-0000​ to give more information about any sort of scam.