Having many choices is one of the best qualities of Singapore. You have a listing of financial products capable of helping you achieve your financial goals. Truthfully, each one carries a risk, but having a cash advance in Singapore has become easy thanks to an easily-accessible licensed money lender near you.
The Moneylender’s Act of 2008 enabled borrowers to trust microlenders completely because of their fair terms and fairly-regulated activities. The Ministry of Law oversees all licensed moneylending activities of twelve-month loan lenders.
A licensed money lender in Singapore gives you immense flexibility than banks. Having a 12-month loan lenders Singapore is possible with low to junk credit scores. Truthfully, many Singaporeans with poor credit breathed a second life into their finances thanks to licensed moneylending services.
Adding to personal loans, you can apply for other financial products from a dependable licensed money lender in Singapore. Each one of these has loan tenors extending up to a year or twelve months with varying terms and conditions depending on the money lender of your choice.
Here are four twelve-month loan terms you can get from A1 Credit Solutions to serve as an example.
A1 Credit Solutions can offer a SGD $500 minimum personal loan amount for all eligible borrowers with complete requirements. All A1 Credit personal loans have a twelve-month repayment period. You can borrow up to six times your regular monthly salary or SGD $500,000. With a requirement of SGD $2,000 minimum monthly salary for Singaporeans and PRs and SGD $3,000 for foreign borrowers.
Like personal loans, A1 Credit Solutions gives borrowers up to six times their monthly salary for bridging loans. On the other hand, A1 Credit Solutions gives borrowers up to twelve months to fully pay their bridging loan. While accessible, a licensed moneylender’s bridging loan has a shorter payment period than banks.
Singapore’s foreigners make up an enormous bulk of the economic workforce. However, with poorly-determinable credit ratings, they cannot hope to work with Singapore’s financing services. A licensed moneylender gives them the best opportunity to get financing up to six times their loan. Plus, the financing’s eligibility and requirements are greatly manageable too.
Start-ups and small businesses are corporate entities. If their commercial activities indicate their earning and growth potential, banks will quickly rally behind them. On the other hand, CEOs and sole proprietors with bad credit can always seek help from a licensed lender, who can then offer them up to SGD $200,000 payable within a year.
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The Moneylenders Act of 2008 states that any licensed money lender can provide up to six times the borrower’s regular monthly salary. This amount is the maximum for personal and foreigner loans, which means the total amount you’ll get will vary between 2-6 times your regular salary.
For licensed moneylenders, bridging loans cannot extend beyond six times your regular salary. If you need bridging loans extending beyond one year, it’s best to consider banks as an alternative.
A 12-month loan lenders Singapore can provide start-ups and small businesses with a ceiling amount of SGD $200,000 financing. You’ll need to bring documents to demonstrate your business’ financial performance in the previous years because the latter will play a huge role in increasing your chances of maximizing your business loans.
Here are the interest rates for each loan available from licensed lenders, such as A1 Credit Solutions. Keep in mind that MinLaw indicates all lenders to charge only SGD $60 cap late payment penalties and loan processing fee of any kind up to 10% of the confirmed borrower’s loan amount.
- Personal Loan
You can get six times your monthly salary. Your lender can give you from 1-4% interest rate depending on your earning capability and income stability. The Ministry of Law imposes a 4% interest cap for all licensed moneylenders.
- Bridging Loan
These financial products serve to lower your existing financing interest rates but never pay the full amount. Therefore, having six times your monthly income in one go can help you pay your remaining balance completely. Bridging loans are still within the Ministry of Law’s 4% interest cap.
- Foreigner Loan
Functioning similar to personal loans, foreigners eligible for their lender’s loans can get six times their salary and still contend with a 4% interest cap.
- Business Loan
An exemption to virtually similar interest rates we listed above, business loans from licensed lenders have a maximum 15% interest cap for good reasons. Borrowers can get up to SGD $200,000 in financing payable for one year, making the enormous interest rate leap justifiable.
If you visit the Ministry of Law -managed and overseen Registry of Moneylenders, you’ll find more than 150 licensed moneylenders who have passed their qualifications.
Choosing from any one of these lenders guarantees you’ll have a fair and enjoyable financing service. Plus, you have recourse if they did commit something out of the ordinary during your loan application.
A reminder: all licensed lenders can only respond to messages originating from borrowers. MinLaw disallows them from performing outreach activities through SMS, calls, and chat. Therefore, treat any lender who advertises their services through these channels as a potential loan shark preying on your financial needs.
One of the most reputable lenders in the country is A1 Credit. With decades of experience and a successful borrower roster, you can count on their level of service and dependable financial solutions.
On the other hand, always read reviews about your prospective lenders. They may comply with the Ministry’s terms and conditions. However, following rules is not a good indicator of excellent and truly meaningful service.
Applying for twelve-month-tenure loans is easy. You’ll need to prove all eligibility prerequisites and submit all necessary requirements. You can get your financing on the same day with any licensed lender loan application if you submit all necessary supporting documents in one go.
Thankfully, you won’t have to go to a physical branch to submit your loan application. You can use your lender’s digital portal to submit your scanned or photographed documents. You’ll then head to the physical branch to collect your loan once you receive the application approval message.
Make sure you can comply with all these eligibilities for all loans. Bridging loans will require that you have the Option to Purchase document on hand:
- You are of 21 years of age and above
- Singapore and PR minimum: SGD $2,000 (for foreigners, SGD $3,000)
Here are some special eligibilities for businesses
- 1 Year minimum operations
- Yearly turnovers of SGD $60,000 and beyond
Here are the basic requirements for personal, bridging (which includes the Option to Purchase document), and foreigner loans.
- Identity card / NRIC
- Proof of residence (utility bill, a letter addressed to you, and/or tenancy agreement)
- Proof of employment (certificate of employment or 3 months recent payslip)
- Work Permit / S-Pass / Employment Pass
- Proof of residence (utility bill or tenancy agreement)
- Proof of employment (certificate of employment or 3 months recent payslip)
- Proof of income (bank or account statement)
- Business loan applications require you to submit the following:
- All Directors / Partners NRIC
- Recent information report (Business Profile) from the Accounting & Corporate Regulatory Authority (ACRA)
- Recent Income tax assessment notice (both personal & from the company)
- Recent financial statement
- Recent invoices or business contracts
- Recent utility bills under the company name
- Recent 6-month bank statements
- List of assets owned by the company, directors & partners (if any)
- Office/Shop Tenancy Agreement (if any)
Steps to Apply
- Visit your licensed lender’s website. Make sure to check their lending license number to ensure you’re working with professionals.
- Review your eligibility and use their online faculties (if any) to submit your documents
- Wait for loan approval or confirmation message.
- Call or message them to schedule your loan amount reception day and time.
When you work with A1 Credit, you’re working with the friendliest financing team in Singapore. With over decades of experience providing high-quality financial solutions for Singaporeans and businesses, we guarantee only the best results when you use our services. Contact us today through a call or message to learn more about our services.