Does the loan help you?
Many people have stereotypical mind-sets about borrowing money, living within your means and moneylenders in general. Depending on the reason for borrowing money, there is no reason why you should or should not take a loan from an online cash loan Singapore moneylender. Besides, your typical gambling addiction advertisements shown on television, loans can be used for many purposes such as investing, generating temporary business cash flow and many more.
If the loan can help you get through a dire situation, go for it, but plan before you borrow. There are several factors to consider when taking online cash loans such as your current financial situation, interest rates and types of moneylenders. If your current income does not allow you to repay the loan on time, you can still discuss with your moneylender about a more suitable repayment scheme to repay the loan. Another important factor to take note of is the interest rates of the loan. You should always have a full and clear knowledge of the interest rates and how it is compounded to avoid having the shock of your life.
The next point focuses on the credibility and types of moneylenders that should or should not be borrowing from.
Types of Moneylender and Their Credibility
There are essentially three types of moneylenders in Singapore.
– Legitimate and regulated moneylenders:
Legitimate and regulate moneylenders should be your preferred choice when you intend to take online cash loans. They are safe to work with, law-abiding and consider your needs. Cash loans are usually quick, have little requirements and convenient. Regulated moneylenders can advise you on how to improve your financial situation with the ultimate goal of repaying the loan to benefit both parties.
– Personal Moneylenders:
These moneylenders are made up of friends, family, and acquaintances who loans money on a personal basis. IOU is an abbreviation for ‘I Owe You’ which is considered as a legally binding document in Singapore context. This is something you might want to consider doing so both you and your debtor agree on paper. Some major considerations for taking cash loans from personal moneylenders are relationships, interest rates, and paperwork. Although it varies from individuals on the loan agreement, generally it is highly recommended that you have a black and white agreement. This is to prevent any misunderstandings from occurring and to avoid getting stuck in a bad situation.
– Illegal Moneylenders
Illegal moneylenders are unregulated and should be avoided at all costs. Many unknown factors could result in serious consequences. The credibility of illegal moneylenders is doubtful, without the law, the terms and conditions given by them could be dubious and unfair. Although, law enforcement can help you if you ever get into trouble with them but why go through the hassle? The interest rates set by them are usually ridiculously high and their methods of debt collection would cause lots of trouble for you and your loved ones. Other dangers involve online moneylending scams where the opposing parties would demand an administration fee before giving out the loan. However, in the end, this is all a scam where you would only lose money and worsen your current financial situation.
In conclusion, loans are best taken when you can afford to repay them without causing harm to your loved ones or yourself. Interest rates for loans should always be clear to you all times and you need to know your repayment scheme. Stay away from unregulated online illegal moneylenders to avoid unnecessary trouble. Regulated moneylenders may seem to be the logical and right way to go but if your situation favours personal loans, you can opt for that instead.