Borrowing money from Licensed Money Lender is not as easy as you think. Borrowers get rejected if they are deem to be of high-risk of default. MoneymoneySG show you tips for a smoother borrowing from licensed money lenders.
- Bring along your last payslip
A payslip means that you are working and have the earning ability of returning the money. - Request for smaller loans
A smaller loan of $500-$1,000 will be easier to obtain as it will be much more manageable for the borrowers to repay back the sum with interest. - Use Collateral
Collateral such as stock and shares can be used at a discount off market value. This option is useful when you are holding shares that are currently below the water and you do not wish to sell them off at a loss. - Work out a repayment schedule upfront.
You know your repayment ability best. The interest rate of the money lenders can go up a lot if you miss the repayment installment. It is best that you work out your repayment capability and seek for a shorter tenor and lower interest rate.
With the above tips, you may be able to gain access to the loans easier. However, do note of the higher interest charge by licensed money lenders. Remember, always borrow within your means of repaying.
