If you are reading this, it is because you need financing, either to buy a car, to make reforms, to get married, or to be able to pay for your studies.
The fact is that whatever the reason for which you need money, you should keep in mind the following recommendations.
Knowing these recommendations you will choose more wisely and avoid a bad choice.
So we have highlighted these tips to make the process easier for you:
1 – Analyze your financial situation
Before applying for a credit loan in Singapore you should ask yourself if you really need the money and what you need it for.
If it is not an emergency, it would be best to save until you raise the capital.
Knowing your financial situation is essential to be able to determine how much money you spend each month and where you spend it.
Knowing the total of your obligatory expenses (such as a mortgage, schools, supermarket, etc.) you will be able to make a calculation with an estimate of the fee that you will be able to assimilate.
Also, analyze how much you spend on leisure and if you can reduce these costs.
Try to leave a margin for the unforeseen.
There are always unexpected expenses, so it is advisable to leave a monthly margin for when that time comes.
It does not matter if this margin is very small, unforeseen events do not happen every day.
This analysis is not easy, but you can find free applications that can help.
2 – Analyze the amount you need and when you can return it
Before requesting a loan, analyze the amount you need and when you can repay it.
The most important thing when requesting a credit loan in Singapore is that you have a clear and realistic business plan. It is common that when you start your company you have ambitious and very enthusiastic plans; however, you must keep a cool head and keep your feet on the ground. Make projections and goals that you want to meet in the short term, the earnings may not be the highest at first but they will be safe income.
Separate your personal accounts from your business accounts. For your project to generate profitable returns, it must be self-sufficient; for this reason, you cannot depend on your personal income all the time. On the other hand, this division of capital gives you clarity regarding the general state of your investments, it gives you precise indicators of the areas in good condition and those that require attention.
With a long-term repayment period, the installment will be lower but you will pay more in interest, so it is advisable to choose a suitable period, neither too short nor too long.
If you establish a very tight repayment period and unforeseen events arise, then you will have problems facing the debt.
Establish the repayment of the loan according to your income and expenses. If you have problems with this decision, contact a financial advisor or the financial institution itself for guidance.
If it is a temporary pothole and you do not need a lot of money, you have the option of requesting microcredits whose return can range between 7 and 60 days.
Financial entities will not confirm the loan if your financial debts exceed more than 30% of your income.
Remember that asking for a credit loan in Singapore is a serious decision that you cannot take lightly. Calculate how much you should pay depending on the amount requested, be honest, and think if you can afford it. By knowing how to manage money, the general performance of your company will improve and reach new frontiers; however, mishandling can have the opposite effect and get you into trouble.
3 – Make a comparison
Make a comparison to find the entity that offers the lowest interest and that charges very few commissions.
To compare each lender you will have to look at the APR, also check other conditions such as what would happen in case of early cancellation or late payment.
Investigate all possible options, from loans offered by your traditional bank to online loans
The market is full of money lenders and each one offers different offers to attract customers, such as the promotion of the first free loan, that is, without interest.
Likewise, it is very important to find a loan that suits your circumstances. Are you in Asnef? Do you have someone who can vouch for you? Do you have any property in your name?
Analyze what conditions you can offer to know what type of loan you need.
4 – Know: What is my ability to pay?
The second of the tips before requesting a credit loan in Singapore is that you know your ability to pay. In other words: it is the amount of money that you will have monthly to be able to make your credit payments within the established term.
To find out, you need to calculate the net profit (the final amount you receive net of expenses) of your business.
Know the financial institutions
Before hiring a service, compare the different options on the market. Do not get carried away only by the amounts, check what are the benefits that they offer you and if you really need them. And finally, make sure you have the necessary information and guidance before signing any contract.
Remember that it is essential that you have an excellent credit history. A good payment history speaks of a person who is responsible, capable, and committed to his aspirations; This generates a lot of confidence for financial institutions and there are more possibilities of acquiring a loan.
5 – Read the contract conditions and Comply with the conditions of the contract
Always read the Terms and Conditions of the moneylender.
Although it seems incredible, many users do not read the conditions. This implies that later they have to assume extra commissions or conditions that they cannot meet.
Always review the payment conditions and the conditions in case of non-payment or delay.
Contact the entity and request all the information in writing.
Also, you can find the conditions and characteristics of each company in the description of each entity.
Plan and manage your money well to be able to settle the loan with the financial institution on time.
If you do not meet your obligations to repay the loan on the date, your financial history will be affected, and you will also have to pay fairly high late fees
Applying for a credit loan in Singapore online can cause financial problems and be much more expensive than expected, but now that you know the best tips before requesting a loan, you will have a better chance of success.