Like a good share of our country's citizens, you have complex personal ambitions and are constantly looking for new ways to round out your income and improve the financial performance of your family. However, no matter how much work you do, it is likely that at some point, you will need an infusion of capital. Do you want to invest in a small business that will eventually become your family's financial engine? Do you need cash to pay your children's tuition? Do you require surgery at a private clinic? In that case, applying for an online loan in Singapore would be the right idea.

Singapore is a veritable success story, as our country is considered one of the most influential places in Asia for international companies. However, for a good part of our citizens, SG is, unfortunately, a rather expensive place. The quality of life is at a high level, as is the medical system, education, and infrastructure, but this comes at a cost. The real estate market in SG is ultra-competitive, taxes for residents are considerable, and the discrepancy between locals and foreigners can be substantial. For Singaporeans, occasional cash infusions are a common occurrence, made convenient by the existence of online loan application platforms.

How Are Borrowers Protected?

SG money lenders, compared to other Asian countries, are well-regulated and limited in the actions they can take against bad debtors. Thanks to the Money Lender Act ratified in July 2008 and entered into force in March 2009, private creditors in our nation have to comply with clear and well-defined regulations, which significantly limit their influence on borrowers. The Money Lender Act is the primary governmental framework by which borrowers are protected from financial fraud and is rooted in increasing transparency and limiting the amounts that creditors can charge for late payments.

Under the act, the maximum interest rate that money lenders can charge for payday loans is capped at 4% per month. Moreover, since 2009, money lenders have been required by law to present their offerings clearly and concisely, be transparent with the repayment period of the loan, and provide all the information that borrowers need in easy-to-access platforms. In other words, the Money Lender Act aimed to eliminate a grey area where borrowers could be cheated and pay exorbitant sums only because they were not adequately informed about the conditions of the signed legal agreement.

The act also brought formal legal protections for borrowers. A new feature was the introduction of three days in which borrowers could unilaterally break the contract signed with money lenders and the requirement that creditors provide a copy of the signed contract in a language recognized by the borrower. The 2008 act has undergone changes and additions throughout the years, notably new PMFT rules in 2009 and provisions related to unsecured short-term loans. However, the basics remained the same, and the act now acts as the backbone of the Singaporean money lenders' legal framework.

What Are the Advantages of Applying for an Online Loan?

First of all, online platforms are easy to use, can quickly provide you with all the information you need in a streamlined interface, and simplify the process of applying for preferred loans. Online money lender platforms allow Singaporeans to apply for short or long-term loans directly from the comfort of their homes, and the approval time of the application is usually lower than in offline locations. Why? Efficiency. Are you missing a document? Is one of the submitted photos not visible? In that case, the platform will use natural language processing tools to automatically detect problems and save you time.

Online money lender platforms offer more loan products than traditional banking institutions. Moreover, in accordance with the Money Lender Act of 2008, they must be extra careful about the information presented to clients, so transparency is a given, and their interest rates are usually lower. Why is that? In short, it's because online platforms have lower overhead costs, automate most parts of the application process, and can thus pass a significant part of their savings into reducing the costs for the customers. In many ways, online money lender platforms are ideal for our citizens, as they facilitate fast and direct loans without risks and potential for misunderstandings.

What Are the Eligibility Criteria?

Applying for a fast and easy online loan in Singapore is straightforward. However, the likelihood that your application will be successful depends on various factors. For starters, to be eligible for a loan in SG, you must be over 21 years old and possess a stable source of income, ideally earning more than $20,000 per year. Under the amendments introduced to the Money Lenders Act of 2008, if your annual income is less than $20,000, then the maximum unsecured loan you have access to is $3000, with an interest rate capped at a maximum of 18% annually.

Do you earn between $20,000 and $30,000 per year? Then, you can borrow two times your monthly income. Do you earn more than $30.000? In that case, you can borrow up to four times your monthly salary. And yes, it is also possible to get a loan if you are a foreigner. However, in this case, the money lender will require extensive proof of your income and a copy of your work permit. Plus, you will be required to earn more than $40.000 per year and enjoy a positive debt-to-credit ratio.

What does this mean? In short, it means that your chances of getting a new loan decrease significantly if you already have debt. Plus, it will be essential that you are employed full-time or part-time with a minimum of six months at your current job. You can also get a loan if you are self-employed or if your income is sporadic. However, the application process is more complex, and ultimately, the approval rate is much lower.

A Great Choice

Singapore is one of the most developed cities in the world, acting as a hub for the services industry and serving as a bridge between the Western world and Asia. However, unfortunately, it is also a place where daily expenses become too much for some people. Do you need a small loan that you can repay by the end of the month? Do you want to invest in your family's well-being and require a cash infusion? If so, an excellent idea would be to use a money lender that presents its offerings on an online platform.

The application process for an online short to long-term loan is simple, fast, safe, and designed to provide borrowers with all the information they need. Being primarily an automated process, the documents necessary for the application can be uploaded using your computer. The fact that you don't have to leave your home is a considerable advantage, especially so if you work long hours and don't have the free time to visit a money lender in a physical office. Ultimately, it's a matter of convenience, and in the grand scheme of things, using the services of a lender with a quality online platform will turn out to be one of your better ideas.

Publication: 2 February 20:35