Do you still remember the good old days before Covid-19 hit our shores? It’s been more than 2 years since the world was swept up in the pandemic; many people are still struggling to manage their finances while some have had their finances negatively impacted.

What is the best way to manage your finances during a pandemic? Who can you turn to if you need financial assistance? Where can you find the best money lenders in Singapore? We’ll answer some of your burning questions and give you tips on how to better manage your finances during this trying time.

Stick to a tight budget

If your income has been affected during this time, we would strongly advise you to devise a tighter spending budget and stick to it. Take stock of your savings, income sources, and expenses. While you’re at it, try to be stricter with your spending as much as possible.

If you are new to budgeting or are creating a new budget with your family, besides manually tracking your expenses in spreadsheets, you can make use of free mobile budgeting apps (e.g. Planner Bee, Wally, Spendee, Monny) to stay on top of things on the go. These apps usually churn out monthly reports for you so to help you track your spending across various categories such as bills, food, entertainment, and transport. Scrutinise the reports, then cut back on or reallocate your funds accordingly. Having access to such data can help you set a more realistic budget.

Once you get the hang of tracking your finances, you’re likely to be more disciplined to spend within your means and be more mindful of how much goes into your savings.

Clear your credit card bills

If you have accumulated hefty credit card bills and are struggling with your cash flow, clearing your bills may be easier said than done. If possible, you should at least pay the minimum sum , and whatever you can spare (instead of waiting until you have enough cash to clear them in one go).

In more dire situations where you have trouble clearing your debts, you can connect with a licensed money lender in Singapore. A financial institution or a money lender in Singapore will be able to offer you financial relief if you meet their application criteria. For example, you may consider a debt consolidation loan from a licensed money lender in Singapore to consolidate your loans and pay through a single, lower interest account every month.

Increase or jump-start your emergency fund

Remember that saving even a small amount goes a long way. Living in a pandemic is certainly a reminder that we should always have an emergency fund to fall back on.

However, all hope is not lost if you don’t have sufficient savings and require cash for an emergency. You can consider reaching out to a licensed money lender in Singapore or other financial institutions for a quick and safe, legal loan option.

The best money lenders in Singapore

LoanHere is a platform that connects our customers to the best money lenders in Singapore. If you are looking for 12-month loan lenders in Singapore or a shorter-term loan for personal needs or business purposes, we are here to support and provide you with the necessary information that you require.

You may also apply for a personal loan such as a bridging loan, emergency medical loan, education loan, or driver’s loan from any licensed money lender in Singapore depending on your needs.

We help you narrow down your search for the best money lenders in Singapore by making it easier for you to compare your options and make an informed decision. All you need to do is fill out this application form on our website and we will reach out to you with a curated list of licensed money lenders.

Moving to a new country can be daunting. The distance from family and friends, contending with unfamiliar ways of doing things and a general sense of isolation can be very stressful. Add financial problems to the mix and it is easy to feel overwhelmed. If you are an expatriate working in Singapore and in need of extra cash, a foreigner loan may be the best solution.

Can foreigners apply for personal loans in Singapore?

A personal loan for foreigners is not as easy to obtain as a regular loan. The income criteria are stricter, particularly for those in the low-income bracket. For those on dependent visas, the restriction on casual work limits the avenues of additional income as well so that’s when a loan might be helpful if you are in need of cash.

If you are struggling with this, one way for you to better qualify for a foreigner loan in Singapore would be to find a guarantor with a good credit history. (This, however, might be tough for those who don’t have a strong social and familial network here.)

Note that most banks will only accept an application for a cash loan for foreigners in Singapore if you are 21 years of age or older.

What are the eligibility criteria for personal loans for foreigners in Singapore?

Applicants have to satisfy several criteria before they are approved for a foreigner loan in Singapore.

Residency

To be eligible for a foreigner loan, you need to be residing in Singapore. This applies to loans from both banks and licensed money lenders.

Employment criteria

Licensed money lenders generally do not place restrictions on employment when it comes to personal loans for foreigners. Anyone who is legally employed and can produce the relevant employment and income documents is eligible to apply.

By contrast, banks in Singapore will only lend to foreigners who are professionals.

Employment requirements vary between loan providers. Generally, Work Pass holders need to be able to show at least 3 months of employment to qualify. Additionally, there should be at least 3 months (or 6 months for certain lenders) remaining on their contract or work permit from the day of the loan application. Because the exact criteria vary between institutions, speak to each to familiarise yourself with their conditions.

Loan limits

The limits for a cash loan for foreigners in Singapore set by the government are summarised in the table below.

However, licensed money lenders in Singapore are private businesses and are free to set more stringent criteria. Many of them might only approve a foreigner loan if the applicant earns over $20,000 per year.

Why is the criteria for foreigner loans stricter?

The tighter restrictions for a foreigner loan in Singapore protect the lenders from bad debts.

This is because a foreigner has less reason to stay in Singapore compared to locals. If they incur very large debts, they may be tempted to leave and abandon their repayment obligations. This is especially the case with low-income foreign workers; lenders are generally more lenient towards high-income borrowers who may have higher income capabilities to repay their loans.

Another reason is that foreigners have a limited (or no) credit history in Singapore. The lack of supporting credit information automatically disqualifies them from some loans and lenders.

Where to apply for personal loans in Singapore for foreigners?

Foreigners in Singapore have two main choices for personal loans, namely banks and licensed money lenders.

All major local banks will extend a cash loan for foreigners in Singapore if they satisfy certain criteria. The five biggest banks are:

1. Citibank
2. DBS/POSB
3. HSBC
4. OCBC
5. Standard Chartered

You can also apply for a personal loan with licensed money lenders. Here’s a list of all the legal money lenders in Singapore.

Foreigner loans with banks vs licensed money lenders: What are the terms?

Loan terms with banks and licensed money lenders can be summarised generally as follows:

Debt consolidation loan in Singapore for foreigners (with licensed money lenders)

If you are struggling under the weight of several loans and debts, a debt consolidation loan may be the answer. This is a special loan that combines all your loans from all your existing creditors into one single loan with a single lender. This lender will pay off your various existing loans so you only need to pay off a single set of loan, usually at a lower interest rate.

Comparing the best rates and offers from different licensed lenders? Use LoanHere to help you compare different quotes so you can find the best deal for a foreigner loan in Singapore.

What are the documents you need?

You will need several documents to apply for a personal loan for foreigners in Singapore.

• Proof of identity – FIN card, passport and work pass (valid for a minimum of 6 months from application)
• Proof of address – Latest bank statement, utility bill or telephone bill
• Proof of income (salaried) – Bank statements and CPF statements with at least the previous 3 months of contributions, income tax assessment and/or payslips for at least the previous 3 months
• Proof of earning (self-employed) – Bank statements, CPF statements, income tax assessment and/or payslips for at least the previous 12 months

Note that lenders do not inform employers when an employee takes a loan. You may apply for a loan without worrying if it might affect your job.

How can you apply for the best foreigner loan in Singapore?

The loan procedure for foreigners is similar to that for locals. You can either apply in person at the bank or licensed lender’s office, or make an online application on the respective websites. Once you have submitted your online application, the financial institution will contact you.

They will then need to verify all your relevant documents before approving your loan. It may take up to 2 weeks with a bank loan and as fast as one day with a licensed money lender. If you need an urgent loan, a licensed lender is clearly the better option.

Once your loan is approved, the lender will draw up the loan contract. Always read through the terms of the contract and pay particular attention to the interest rates, instalment due dates, repayment period and fees. If you do not understand, always clarify before signing.

When the loan contract is signed, the money will be disbursed immediately. Banks will do this via a bank transfer or cheque while money lenders may do it via bank transfer or in cash.

Loan repayments for banks may be made using cheques or bank transfers. Money lenders accept cash, cheques or bank transfers.

Do you need a foreigner loan from a licensed money lender in Singapore?

LoanHere helps you find and compare the best rates with the top money lenders. Get your quotes from different lenders now!

Some people assume that investing requires a big sum of cash and is usually practiced by wealthy people. However, this is very untrue as investing can be done by anyone, no matter your wealth size. Investing is very important especially when you work hard for the money you earn. The money you save can be used to grow your wealth exponentially over the years, which offers some financial security. Your investments can become another stream of income for you or be used for your retirement so you can live comfortably. Not only can you invest your own savings, but you can also create a steady payout by finding the best personal loan in Singapore to help in your investment plans. While anyone can begin investing, a beginner might find it a little daunting as there are many types of investments and certain things to note before diving into it.  Here are the basics of what you need to know before creating your first investment portfolio.

How much time and money do you have?

When starting your investment portfolio, you have to consider the amount of time you want to put into investing. There are active and passive investments and they reap different rewards but choosing which type to get into depends on the amount of time you have. Active investing will require a lot of research on your own to find out the different opportunities that work for you. It will also involve analysing the stock market which requires some knowledge in investing. As these active stocks are constantly changing, it will require you to closely monitor them, which can take up a huge chunk of time in your day. Active investing is a riskier option but it can incur a huge amount of returns when done right. On the other hand, you have passive investing, which can be done through a trusted financial advisor by depositing a lump sum of cash into your investment of choice. You will not have to touch your money as it steadily grows on its own over the years. The longer you leave your money in the investment, the more return you will receive. Passive investing is a hands-off approach that can get you moderate profits.

Next, you have to think about the amount of money you have to put into investments. Once you receive your monthly income, you should pay off your expenses and loan repayments before using the remaining money to invest. Even a small amount of $100 can be used to invest but what is more important is that you set aside a long-term budget as investing will require consistent funding. While some investments can also profit from getting the best personal loan, it is still important to set aside your own investment fund.

Assess Your Risk Tolerance

Investing inevitably comes with some risks but deciding your risk tolerance can make it easier when choosing the right investment plan for you. Not all investments have a huge return and most of the time riskier investments will get you the big bucks while low-risk plans have a much smaller profit. To find out your risk tolerance, you can ask yourself some simple questions. Firstly, are you able to take risks? This largely depends on your current income, loan payments, and other expenses. If you have a high income but just a few liabilities, you are most likely able to take risks. Secondly, do you need to take risks? This correlates to your financial goals of how much you would like to earn from your investments. If you need higher returns in a short span of time, you will probably need to take a risk. Lastly, are you willing to take risks? This is a personal decision that depends on your comfort level.

What should you invest in?

The big decision is deciding what type of investment to dive into and this should depend on the above factors. If you’re looking into an equity portfolio with high returns but high risks as well, stocks would be your best bet. If you’re looking to maximise your income and gain a medium to high profit, dividend-paying stocks are a possible investment option. If you prefer a low-risk plan for capital security, bonds can help with that.

However, investments don’t just stop there. There are also mutual funds, exchange-traded funds (ETF), and even real estate investments. Investing in property and renting it out can provide a steady income. As purchasing a property can be hefty, finding the best personal loan in Singapore is a viable option. Local banks provide such loans and once you’ve bought a home with these funds, you can then rent it out. However, even if you’ve managed to get the best personal loan deal, you need to charge a rent high enough that it covers your monthly mortgage loan while also collecting a profit. These are just some of the ways you can diversify your investment portfolio to ensure financial security and independence.

A bridging loan is a popular form of loan in Singapore that homeowners and investors look for. If you are looking to purchase a new home or investment property, here are some things you should know about bridging loans and how they can come in handy.

When should you get a bridging loan?

As the name suggests, a bridging loan is a form of loan that gives you the money you need to bridge the gap in your finances to make a payment. For example, you may require an urgent loan to cinch the deal on a property while waiting for sales proceeds from your current home or other investments. Most people who take out a bridging loan are usually homeowners upgrading their property from a HDB flat to a condominium or private housing, or investors looking to purchase a property while the price is right. These require considerably large down payments and a bridging loan can be an ideal option to help pay for their dream property even if they do not have enough cash on hand. Bridging loans are not just exclusive to private property buyers. They are also available to homeowners buying a HDB flat too. They are a great loan option for your property needs.

Factors to consider when applying for a bridging loan

1. Interest rate

Taking out a loan from a licensed money lender is often a wiser solution as they offer lower interest rates compared to banks or other financial institutions. There are many free-to-use platforms offering a wide network of licensed money lenders to their customers, to help them compare loans and find the best one for their needs. Besides being free and convenient to use, they also help to verify the legality of the money lenders in their network and ensure that their customers only engage with money lenders with positive reviews. 

While every money lender offers different interest rates, make sure you shop around and look for competitive prices and packages to suit your needs. If you are looking for a reliable bridging loan with a lower interest rate, why not consider looking for one from a licensed money lender? 

2. Flexible repayments

An important factor to consider is the monthly repayments. We cannot emphasize enough the importance of taking out a loan within your means. A bridging loan has its benefits but you will need to crunch the numbers and see if you are able to repay it on time. As a bridging loan is meant to help bridge the gap in your finances, do make sure that you are able to afford the repayments on top of the mortgage of your new home.

3. Loan amount

A bridging loan should finance only up to 25% of your property purchase and not the entire amount. Ideally, it should help you pay for the deposit or down payment while you wait for the sales proceeds from your current home. While urgent loans, especially personal loans, offer a lower interest rate with a longer loan tenure, you should only borrow the amount you need to bridge the financial gap and not take out more than what you need.

Ready to take the next step with a bridging loan for your dream property? Visit LoanHere to find out more.

Notorious Types of Scammers to Watch out for when Seeking Fast Cash loans

Have you ever bumped into a personal loan provider whose deal sounded straight out of an angel’s mouth? Maybe fell into a financial snare that ripped you off of your hard-earned money, just because you needed an urgent cash loan? You’re not alone. Year in year out, thousands of Singaporeans get nipped by the sharp claws of loan scammers. Cases of loan hoaxes are so prevalent in the Singapore cash loan market that it’s become harder and harder to separate the wheat from the chaff. To make it worse, loan scammers have a clear mastery for slipping in between identities and wearing different faces and personalities. So if you’re new to Singapore’s personal-loan space, this article peels off the masks of six common types of loan scammers you need to be wary about.

1. The mystery caller

Just like an agent on a mission, this one operates like a faceless man. They insist on strict phone communication and turn down any request to finalize the deal in person. Most, if not all of their loan offers are promoted via Facebook, email, SMS, or calls. Of course, they’re hiding something, and it’s not good. Keep in mind that Singapore’s laws prohibit lenders from marketing their products online or personally. So if you receive a mystery phone call from a personal number that’s promising you fast cash loans at crazy rates, don’t fall for it.

2. The Eager Beaver

We’ve all encountered this one. He is overly enthusiastic and acts with an impending sense of urgency. His frequent victims are desperate individuals who are in dire need of fast cash loans to fix emergencies. How they move from “Just take your time” to “this offer expires tomorrow, so you need to act fast” is um…suspicious. If you’re keen enough, you’ll notice that every minute you spend negotiating or asking questions drives them insane with impatience. This manic enthusiasm should raise an eye-brow because genuine, licensed lenders will never coerce you into taking their personal loans.  

3. The One your Guts doesn’t like

Looking for an urgent cash loan in Singapore? Your gut is your most loyal ally. Somewhere along the way, you’ll meet a money lender that’s difficult to trust. The trust just isn’t there, and it will never be there. Maybe you spot some gaps in the loan contract, or their misdemeanor is telling. As soon as you smell that something’s off, just abort the mission.

4. The Proverbial Dumb and dumber

Of course, you’re bound to come across that one stone that isn’t blessed to become a diamond. The foolish scammer is the type who’s just beginning to learn his scamming chops. Their plot leaves behind obvious loopholes that you can use to bust them. But do you know what’s even more appalling about this scammer? It’s the fact that in their head, they’re smarter than everyone else. For instance, when you ask for the loan contract, they’ll give you a lengthy, incomplete document, hoping that you won’t read the whole thing. Or, they could even give you a fake physical address thinking you can’t use an address validation system to rat them out. In a nutshell, their scamming schemes are the equivalent of walking in mud and hoping you leave no footprints. The only victims they manage to dupe are those who are as intellectually challenged as they are. Or worse.  

5. The Physically Enchanting One

Armed with suave looks and an endearing personality, their charm will lead you to the gallows. Startling in their outward appearance and inward charm, this type will use their pleasant qualities to bait anyone looking for an easy cash loan. These will go the extra mile of showing up at your doorstep to lure you into their fast cash loans. Resist.

6. The Computer Wizard

This scammer is more cunning than the rest because he actually knows what he’s doing. Their mastery of tech is out of the ordinary borrowers’ grasp, hence many people fall into their trap. Among all the arrows in their quiver, their two favorites are phishing emails and scam DMs. For instance, you might receive a loan advert via SMS, featuring a website link. On clicking the link, you’ll be led to a site that’s a replica of a licensed lender’s site. The ensuing events will involve being convinced to make an upfront payment before approval or refund $800 once $500 is relayed to your account. But here’s the catch- the $500 will never be relayed to your account. However, even “smart” scammers can be smoked out. Look out for links to fake websites, spelling errors in website addresses, and any impersonation attempts of licensed moneylenders.

To avoid getting scammed in the process of acquiring an easy cash loan, stick to licensed money lenders.

Personal loans – does it have a negative connotation when it comes to mind? Well, it is no surprise that people often associate the word ‘loan’ with poor financial management, but we are here to change that mindset. When used correctly and responsibly, personal loans can be a useful solution to help you take charge of your finances especially during emergencies.

With rising costs of living, we might inevitably stumble upon unexpected situations in life that may require immediate financial assistance. Crises such as medical emergencies would require a sum of cash pronto. In times like this, a personal loan can be a viable option for you.

What are personal loans?

A personal loan is typically a type of unsecured loan that can be customized to fund any of your needs such as your medical bills, home renovation, education, wedding expenses and so on. An unsecured loan means that you are not required to put up any form of collateral to secure funds, which is good news because it means less risk for you. Regardless of your situation, a personal loan can be a viable short-term solution to get access to a sum of cash.

Here are the 3 different types of personal loans in Singapore to help get you started on this journey should you ever require a personal loan.

1. Personal installment loan

A personal installment loan, or a term loan, is a sum of money that you can borrow from a bank or licensed moneylender in Singapore. The loan name varies across different banks and moneylenders, but the principle is the same. It is one of the most common and flexible types of personal loans you can find in the market.

A personal installment loan can be repaid in fixed installments, typically up to 60 months, depending on the financial institution, and may include a one-time processing fee ranging from 0% to 10% of the principal amount.

Personal instalment loans are useful in situations such as medical emergencies, in an unforeseen circumstance where a huge sum of money is required.

2. Personal line of credit

A personal line of credit is a type of personal loan that allows you to withdraw loans within a credit limit. This loan is often regarded as “standby cash” as there is no repayment penalty and the approval rate is fast.

The financial institution would first determine the limit in which you can borrow from your line of credit. You will only be required to pay interest on the amount and the duration that you have borrowed and are not obliged to pay anything else until you decide to borrow from your lender again.

Unlike a personal loan, the repayment term of a personal line of credit is open-ended and the interest rate can vary. It also comes with an annual processing fee that renews yearly.

3. Balance transfer

The third type of personal loan is called a balance transfer. It is used to help reduce interest rates of different loans and is a great option for the borrower to consolidate their outstanding debt into a single account with a fixed interest rate. It provides the borrower with a pre-determined interest-free period that they can use to pay off their existing loans.

Usually, there is a one-time processing fee ranging from 1.5% to 5.5% and up to 12 months for borrowers to pay off their debts without incurring any interests during this period. If there is still balance left after the interest-free period, additional interest fees may be incurred on the remaining payment.

It can be a great way to pay off outstanding debt within a short period if you are confident that your cash flow will improve and that you can repay your debt as soon as possible.

Amid the hustle and bustle of life, there might come a point in time where you may need some extra cash to tide through a month or two. Sometimes a personal loan can come in handy when emergencies occur. For first-timers applying for a personal loan, just the thought of applying or searching for the right loan may be daunting. Fret not, we have here some dos and don’ts to guide you through your first personal loan application.

Do’s

1) Get your facts right

Before applying for a loan, it is important to do thorough research on the type of loans that best suit your needs. There are many types of personal loans out there for various purposes such as consolidating debts, funding home renovations, paying for medical expenses and so on. Personal loans can either fall under “secured” or “unsecured” categories depending on your needs and repayment ability.

 While every moneylender has their packages and interest rates for secured and unsecured loans, you should familiarize yourself with the types of loans available in the market and your ability to meet specific credit criteria. This would help you make more informed decisions when applying for a personal loan to meet your needs.

2) Survey the market

The difference between a licensed and unlicensed moneylender makes a world of a difference, so does a low interest rate and a high interest rate. You should always do proper research and background checks to make sure that you are dealing with a licensed moneylender. Surveying the market for competitive interest rates would help you save on forking out extra in interest rates over time as well. It pays to do your homework.

3) Read, read, read

 Understanding the different types of loans and interest rates is just as important as reading the fine print on your loan application. Always go through the fine print in detail to check for hidden or additional administrative fees and so on. 

Don’ts

 1) Not checking your finances

 For many first-time loan applicants, it is easy to fall into the trap of taking out a loan amount beyond your means. We do not recommend taking out a huge loan just because you think you can afford it. A loan payment may seem manageable at first but you may run into unexpected circumstances such as losing a job or incurring emergency medical expenses. Overborrowing can be dangerous as it might lead you to an even greater debt.

 For first-timers especially, before applying for a loan, make sure to check your financial health and account for any existing debts and rainy days to avoid taking out a loan that is not within your budget. When in doubt, you can always consult potential moneylenders to put together a plan for your loans.

2) Making late payments

 This is by far one of the biggest mistakes a first-time loan applicant can make. When you take out a loan, you will have to pay both the principal and interest back to the lender. First-time loan applicants may overlook the fact that interest rates can accumulate over time, especially when payments are late. To avoid this mistake, schedule automatic withdrawals or reminders to pay your loans on time. Your pocket will thank you later.

 Taking out a personal loan for the first time doesn’t have to be scary. With these tips in mind, go forth and search for the best loan suited for your financial needs. When in doubt, our team of experts is always ready to help at Loan Here.