Before taking up a loan

Taking up a loan is a big responsibility for everyone. Before you approach a moneylender, try considering other choices, including getting financial assistance schemes offered by government agencies. Do contact them to find out more about the schemes they offer.

Note that once you signed the contract with a licensed moneylender, you are legally obliged to fulfil the terms and conditions as stated in the contract. Bearing in mind your income and financial obligations, consider if you are able to abide to the contractual terms before signing the contract. You should only borrow what you need and what you are able to repay. If you are unable to meet the contractual terms, the late payment fees and interest payment will be a financial strain to you and your family.

The Singapore laws requires moneylenders to explain the terms and conditions of a loan to you in a language you understand and to provide you with a copy of the loan contract. So make sure you understand the terms of the contract, in particular, the repayment schedule, the interest rate charged and the fees applicable. Also, consider carefully before agreeing to any contractual term which allows a moneylender to lodge a caveat on the sale proceeds of your real estate property upon default of the loan repayment. When a caveat is lodged against your property, you will not be able to sell it without first repaying the moneylender in full. If the repayment is taken from the net proceeds from the sale of the property, it can wipe out a substantial portion of the proceeds.

Lastly, you should shop around different moneylenders for the most favourable terms. You should not rush into and commit yourself to a loan until you are satisfied with the terms and conditions.

Loan amount

Make sure you borrow within your means and able to service the monthly repayment installments. Before you commit to a loan, consider any other monthly payment obligations you have, such as housing or car repayment. Make up a list of all your expenses and then decide if you will be able to meet the cost of repaying a loan. This is extremely important as it will provide you an indication of your financial ability to meet your obligations.

Before signing the contract

Please read carefully and understand all the Terms & Conditions stated on your Loan documents before you sign them. Do not hesitate to ask any questions to clear your queries before committing to the loan. Also, read the Fee Schedule & Charges on your loan contract carefully. The fee schedule & charges show you all the applicable fee and charges for your loan.

Things to do after being granted a loan

Firstly, ensure the moneylender delivers to you the full principal amount of the loan as stipulated in the Note of Contract. There should be no installments or fees deducted up‐front.

Do pay your loan installments on time to avoid late penalty and interest charges. We provide fast cash loans to you whenever you need it but you are also required to pay your monthly installments promptly to avoid late penalty and interest charges. You should always keep track of the repayment dates. A GIRO plan is recommended so that payment is made on time. Also avoid taking multiple loans as this will increase your financial commitments and you will be overload with loans that you cannot manage.

Make sure the moneylender issues to you a dated and signed receipt every time you repay your loan or pay any fees in cash, and check it for correctness (e.g. name, amount, date). Also, ensure that you receive a statement of account for all your loan(s) at least once every 6 months, and check it for information correctness. Also, you should retain all statement of accounts and receipts of payments, as documentation and evidence of payments.