Getting loans from an online lender sounds so easy. However, for some, it sounds tricky. Like banks, online lenders do offer financial services that are more attractive in some ways.
But there are important things people should know and are worth considering before deciding on getting a loan from online lenders.
Let’s explore more about online lenders and discover things, whether it’s better to take up loans from them or not.
Getting loans online is now a trend.
Who would not want to borrow from lenders where processes and transactions are fast, easy, and handy? Need fewer requirements, less strict, and less hassle?
Getting a loan from online lenders is hooked by these words where they get a convenient experience and meet their expectations.
Well, if you’d ask me personally, I’d also prefer to borrow money where the application process is as easy as buying my essentials online. Aside from that, I like to borrow where it is safe and secured.
I bet that’s what you are looking for, too? Right?
Fortunately, the industry found a way on how to meet this problem. For the past decades, the lending industry continues to grow and evolve. Meeting all the borrowers’ expectations are not yet guaranteed by the industry. However, they are working hard toward a full-digital experience for borrowers.
Many had already benefited from online lending services. But I’m pretty sure there’s something that makes you feel doubtful.
You might think about whether it is safe to borrow or not.That’s what we usually think. Of course, we’re dealing with personal information that ought to be confidential.
If you’re already eyeing online lending you plan to apply for a loan, here’s what you should do to know if it is legit or not.
Legitimate and Illegitimate Online Lenders
Does this mean there are illegitimate lenders? Yes, of course! That’s why people get so skeptical about online lending because of the dirty games caused by illegal lenders. They are usually known as ‘loan sharks.’
Loan sharks are pretentious online lenders recognized as unlicensed moneylenders. They could be either a person or an entity that offers financial services. They allure people through their easy money lending services with sky-high interest rates beyond established standard rates.
Another thing, loan sharks do tactics where they harass and threaten the clients, forcing them to repay their loan.
But why do many still borrow money from loan sharks? Maybe because sometimes, “desperate times call for desperate measures?”
We can’t deny that we can no longer think or decide properly when we’re in desperate times needing money. It’s the very reason why we gamble and take risks. However, we know that this is unhealthy and illegal.
That said, to protect the citizens and residents from “Ah Longs” or loan sharks, Singapore’s Ministry of Law implemented the “Moneylenders Act.” Anyone or any entity who contravenes the law is subject to punishment.
Important things to know on how to choose a legitimate online lender
If you don’t want to get trapped by the loan sharks’ dirty game, here’s what you need to do:
- Make sure that the online lending company is licensed. You can search for the list of Licensed Moneylenders through Singapore’s Ministry of Law website.
- Check on the lenders’ reputation and credibility. Better choose those who are operating for a long time.
- Interest rates don’t exceed the established legal rate that is not more than four percent (4%).
- The online lender is offering flexible repayment terms. Choose a lender where you can negotiate with if you would not repay the loan on time. Credible online lenders make sure that the loan terms and conditions are well-explained to the borrowers.
- Choose an online lender who has an active and secured website. Secured websites are SSL certified, which makes all data protected against data hackers.
- It is better to choose an online lender where the process is very convenient and comfortable.
What you need to do before borrowing money from legitimate online lenders
Before you dive into an online lending company, here are the three (3) important things you should keep in mind.
Know how much loan you need.
Don’t push yourself to the limits. Calculate how much loan you need based on your financial capacity of repaying it over time. Remember, borrowing money has risks. But if you have planned things thoroughly, you can manage risks without any pressure.
Manage your money wisely.
Even if you don’t take a loan, we should learn how to manage your money and make it a habit. You need to know where your money goes. In the case that you have debts, you should choose repayment terms that you can commit to—budget every spending you make. If possible, you prioritize your repayment obligations other than unnecessary expenses.
Find other options.
Getting loans from online lenders is excellent financial assistance you can get. But you can consider borrowing money from your family and friends and reassure them that you can pay it back.
Perks of borrowing from online lenders
Here’s why people choose to borrow money from legit online lenders over banks.
You save money and time.
There’s no need to leave your home. Everything’s at the tip of your fingers. All you need to have is your mobile or laptop/desktop and an internet connection. What you need to do is as simple as going to their official website and inquire how to apply for a loan.
Fast and smooth process during application.
Everything’s digital. From filling out the form down to submitting the needed requirements.
Borrowers get fast approval.
You don’t need to wait for too long. You can sit, relax, and within a few minutes, you’d be able to know whether your application for a loan is approved or not.
Unlike banks, moneylenders can allow you to borrow from them even if you earn less than S$10,000 annually.
Short-term loans – lesser interest rates.
Online money lenders are offering short-term loans to pay lower interest rates than borrowing long-term loans.
Are you ready to get a loan from an online lender?
Applying for a loan online from a money lender ang mo kio is simple and easy; however, there are essential things worth considering before getting a loan and choosing an online lender. We can’t afford to get lost and trapped in illegal lenders and suffer later. It is still worth the time to read a money lender singapore review to know more about the lender.
If you’re stuck in tight situations, learn to manage your emotions before you dive into decisions. If you find it difficult to decide, you can seek financial advisers’ help to assist you with your concerns.