Introduction

Personal loans can be a good financial instrument that is good for receiving funds needed for emergencies, medical expenses, education, weddings or even debt consolidation. If you are interested in obtaining a loan for personal use, but traditional banks are either too stifling or slower, a licensed money lender might have a quicker and easier way for you to borrow. For more information click on good at money lender toa payoh.  This article provides a general overview of important steps to apply for a personal loan from a licensed money lender.

How to apply for a Personal Loan from a Licensed money lender

Find a licensed and reputable money lender: The first step is to locate a licensed and reputable money lender. Avoid dealing with unlicensed or unknown lenders because dealing with them will create a legal mess, financial scams, or unethical lending practices.

Check your eligibility: Although licensed money lenders might be more lenient than banks, they still need to get some basic information about you to enable them to know how much you are worth. Your age, employment status, monthly income, residency status, and current debt obligations are some of the factors that most lenders will look at.

Compare their loan terms: This step involves comparing the interest rates, processing fees, charges for late payments, loan tenures and arrangements for repayment of loans. Take your time and understand the total cost of getting a loan to make an informed decision.

Gather the requisite documentation:  Most licensed lenders will require valid proof of identity (eg. Government-issued ID or passport), proof of income, and Bank statements of the last 3-6 months. With these documents in your hands beforehand; the process of application will come much easier and faster with an added assurance of quick approval.

Submit your loan application: If you have sorted out your documents, you can move on to apply for your loan, you can do this online or physically at the lender’s office. A good number of licensed lenders have online portals which make it easier for you to apply from the comfort of your home. The application will most likely require information like how much loan has been requested, the intended use of the loan, monthly income etc.

Verification of application: After submission of the loan application, the licensed money lenders will verify the application as per their criteria.

Conclusion

Applying for a personal loan from the licensed money lender by following these steps avoids any delay on the part of the borrower and ensures the timely approval of the loan from the licensed money lender.