No one can deny that money is the basic necessity of life. The value of money even better experience if you are staying in an expensive city like Singapore. The need for money varies from person to person. Most people face a shortage of money during the month-end. And, several people face a shortage during emergency situations. Therefore, the source of lending money is different, as well. Here, you will get to know all the different lending sources available for you.
The task to Do Before Applying for a Loan
But, before rushing to the theme, here are some of the questions that you need to answer before applying for a loan.
- Why do you need money?
- By what time will you able to return the loan?
- What if you could not return in the given time?
- What are your alternative plans to repay the amount?
- What is the highest interest rate that you can pay?
These are the basic questions that you need to ask yourself, and the answer varies from person to person. Many people just ignore these questions and face the consequences later. So, you must have clarity about your decision and always prepare for the worst situation.
Where to Lend Money?
There was a time when money was the most powerful weapon; one can have. After several years, knowledge replaced the money. A knowledgable person was considered as the most valuable person. But, in today’s market, the person having the most information is the strongest. Thanks to the internet, knowledge is available at your fingertips. An informed person can make the right decision according to the situation. There are a number of Moneylenders Singapore are waiting to help you out, but most people are unaware of them.
Banks
The most ancient and traditional source of lending. Believe it or not, even today, no other institution came close to banks in terms of money lending. They are government authorized institutions for granting loans for you. Their interest rate seems to be minimal, in comparison to other money lenders. You can also get the benefit of additional discounts, thanks to the government subsidies and relationship discount.
But, on the downside, banks often need a good credit score for approving scores. Previously, if you had any kind of irregularity in terms of loan repayment, it will be virtually impossible to get a loan.
If you have an impressive credit score, it is recommended to apply for a loan from your nearby bank.
Credit Unions
Sometimes, it’s better to get a loan from a credit union than a bank. Some of the credit unions are not-for-profit, and their interest rate even lower than that of a bank. As a result, try to be associated with them as early as possible to get the best result.
But, on the other hand, it is quite difficult to be a member of a credit union, as they have a number of eligibility criteria. The eligibility criteria vary from union to union. In most cases, you required to be a local citizen or associated with certain organizations, like a club, school, or an office.
If you are part one of such credit union, apply for a loan, and you will get the best result in the long term.
Online Lender
The world is becoming digital. And, in the digital age, many online lenders are open to granting you loans. One can get the best user experience with online lenders. You don’t need to visit any particular branch regularly for your loan sanction. Just upload your documents online, and they will verify everything. Their representatives might visit your place for inquiry. The best part they will transfer your fund within a couple of working days once your loan sanctioned by the bank.
A number of online moneylenders are there on the internet like CRAWFORT Singapore. Therefore it is advisable to carry out extensive research to get the best online money lenders Singapore. Besides, their interest rate is relatively higher than that of a bank. So, at the time of emergency, do consider the option.
Payday Lender
Generally, payday lenders offer a short-term loan, and their loan amount is quite small as well. They charge a heavy interest rate for their amount. But, the processing is very easy, and almost everyone is eligible to get a loan if you have a certain level of monthly income.
When you search for a payday lender, consider those are having a license. Besides, try to choose a reputed institution like CRAWFORT Singapore.
If you are facing a short-term need of capital like a month-end crisis, it is recommended to go for the payday lender.
Pawn Shop
Though there are different types of lenders available, the pawnshop is definitely the easiest way to get a loan for your emergency. They don’t consider your credit score, monthly income, or any other thing while proceeding with your application. They will grant you a loan based on the value of items that you are pawning. On the downside, the rate of interest lies on the higher side.
Consider all the options before going for a pawn loan. They will sell your belongings if you are unable to pay the amount in the time. You can opt for the loan if there are no other options available with you.
Credit Card
In the modern world, every second person has a credit card. Every card has a line of credit already granted for you. You don’t need to fill further documents for withdrawing money for the credit card. But, the loan is short term in nature, as you required to pay back the money in a short duration.
A credit card is extremely helpful during the end of the month or any short term crisis.
Besides, you can borrow money from your family and close friends. The best part is they will not charge interest from you. Consider all these options and opt for one which suits your requirements.