Licensed money lender offers a wide range of loans you can choose depending on your needs. Examples are housing loans, educational loans, and business loans. But what we will focus here is a loan you need when there is a family emergency, home renovations, or to pay other debts, the personal loan. Here are the things you should consider before applying for a personal loan:
How to apply for a personal loan from a licensed money lender
Expect that you will be asked to provide vital credit information such as name, birthdate, NRIC, address, past and current employers, years of employment, profession, income resources, monthly salary, and additional data about your current credit accounts.
Your credit card report will also be looked at including your payment history, the kind of accounts you acquire, overdue bills, late payments, current debt, and others. Licensed moneylender like banks would consider this information before they approve your personal loan.
The more specific the loan, the lower its interest
Particular loans have lower interest rates. For example, instead of applying for a personal loan to pay a debt in school, go for an educational loan instead. Personal loans often charge up to 8% interest while more specific loans like renovation and education only have 2%.
File your personal loan at the right time, at the right licensed moneylender
Do not rush to the bank and file for the loan abruptly. Review your options first and the timing which is somehow related to the law of supply and demand. The fewer borrowers apply to the bank, the lower the interest they offer. They can also be more gracious with the repayment terms. So watch out for the economy trend too.
Think of the late payment, penalties, and other fees
Read each sentence of your repayment terms and conditions because if not, you might get surprised by the hidden charges, processing fees and other charges you may not know of.
So we hope these facts about a personal loan from license money lender help you in your application. If you want to share any more tips, please comment below.