top of page
Guest Post

Why Apply for a Debt Consolidation Plan from a Money Lender?

Our ambitions can often only be fulfilled through the capital we have at our disposal. Do you want to invest in your family's education? Acquire assets that will influence your everyday living? Expand your business and enhance the financial prospects of your children? Then, you will need a cash inflow that matches your subjective needs. How can you obtain it? By utilizing the services of a lender who benefits from a money lending license.

Why Apply for a Debt Consolidation Plan from a Money Lender?

Are there alternatives to loans? Sure, but they are usually not as prompt and may come with significant risks. Loans, when obtained from private agencies with a money lending license in Singapore, are supervised by the government of our country and can ensure the expansion of your venture, provide you with the capital you require for emergency funds, or offer you extensive investment opportunities.


Why Go for a Private Lender? 


The main reason is convenience. Singapore is one of the most developed island countries in the world, with by far the highest standard of living in Southeast Asia. However, SG is also an expensive place where opportunities for personal development go hand in hand with disposable capital. Need quick cash with no questions asked? Are you afraid that you cannot meet the loan requirements imposed by traditional banking institutions? If so, selecting an agency that benefits from a money lending license is the right thing to do. 


The services of private lenders are convenient and, most of the time, benefit from faster approval than traditional banks. Do you want to apply for a payday loan? If so, the application process can be done online, while the response to your request will, in most cases, be received in less than 48 hours. Moreover, the loan conditions will be simplified, and the repayment times will be advantageous. Are private lenders safe? Yes, and that's thanks to the regulations imposed by our country's government.


Your Financial Data Is Protected


In accordance with the Moneylender Act, which came into force in July 2009, private lenders operating in Singapore must conduct their business following a predefined set of conditions and respect their client's right to privacy. Private lenders in SG cannot charge an interest rate higher than 4% per month, cannot offer unsecured loans with a principal value exceeding twelve times the net salary of the client, and are not allowed to impose an administration fee of more than 10% of the loan total. Private lenders are more flexible than banking institutions, can offer financial packages that are not found in the range of national banks, and the application process for their services is available online. 


Need quick cash which you will repay by the end of the month? If so, you could apply for a payday loan. Are you in need of a significant sum that you can repay in less than two years? In that case, a good idea would be to consider a personal loan. However, if you're already managing multiple credits at once, a debt consolidation plan from a money lender might be ideal for your needs. The services of agencies with a money lending license in Singapore are varied and can boost your family's financial well-being.


Why a Debt Consolidation Plan from a Money Lender? 


In the end, it's a matter of practicality. Are you currently managing multiple credit card and personal loans? Has their monthly total become a financial burden? If so, merging these credits into a debt consolidation plan from a money lender could be a practical solution to streamline your finances. Debt consolidation loans are, in simplified terms, financial plans whereby you can take your existing debt and merge it into a monthly payment that will be remitted to a single lender. Do you have three separate loans to three separate financial institutions with varying interest rates and repayment dates? If so, their management can be complicated.


A debt consolidation plan from a money lender can provide you with better interest rates, more attractive repayment periods, and an influx of cash that you can use to aid your professional growth. Debt consolidation loans are a way to improve your credit score, enhance your cash flow, lower the long-term repayment sums, and avoid unpleasant financial events such as bankruptcies, which would remain permanent as a blip on your record. Not least, they are a popular solution. 


In the United States, between 2021 and 2022, inquiries for personal debt consolidation loans increased by more than 29%. This trend can be observed worldwide. With the rise in prices for everyday goods and the impact of inflation, more and more citizens of our country are forced to turn to short-term or long-term financing packages. Debt consolidation loans are a consequence of the times. However, they can, at the same time, represent flexible financial instruments that will have a positive impact on your cash flow.


How to Become a Licensed Moneylender? 


Unlike in other countries, the private moneylending market in SG is well regulated, and its activity is supervised by the Registry of Moneylenders, which operates under the guardianship of the Ministry of Law. To obtain their license, firms seeking to become moneylenders in our country must be registered in SG, be more than 50% owned by Singaporean citizens, and submit a security deposit of $20,000. 


The upfront fee for the license application is $600, and at least one of the persons in the company must have passed the Moneylenders test, which costs $130. The permit is only available to firms that have a UEN, and the application turnaround time is usually around four weeks. If approved, the license fee is $1500 and is valid for 12 months. What is noteworthy, however, is that as of last year, the moneylending licensing process for new agencies is suspended indefinitely, with the expectation that the submissions may resume by the end of 2024.


What documents are required? For starters, firms wishing to obtain their moneylending licenses must present evidence of sufficient funds. For this purpose, income slips and bank statements are usually enough. Interested firms must also provide proof of educational qualifications and copies of the NRICs of the individuals involved in the moneylending business. The licensing process for private moneylenders active in our country is thorough, and their activity is well-regulated. Are you thinking of acquiring a debt consolidation plan from a money lender active in SG? Then, you will make an excellent choice that could represent the start of your firm's financial empowerment.



Related Content



12 views

Comments


bottom of page