Cars or automobiles today have evolved into something more of a necessity than a luxury like it was decades ago. Today, owning a car in no longer a status symbol (except perhaps if you own expensive sports and luxury cars) but more of a need to get you from one place to another. This is perhaps the reason why in almost all parts of the world applying for car loans are getting to be a very common activity among individuals. Applying for a car financing from any Loan Company is the first step in owning a brand new car.
This is a tool or more specifically type of loans that is used to purchase a car or any other types of vehicles and this financial aid can be procured from the in-house financing of the Vehicle Company (or simply an assistance from them), banks and other large lending institutions. There are actually four basic things you need to know when applying for a car loan and these are the qualification requirements, from whom to apply the loan with, the legal obligations of taking out a car loan and more importantly insurance obligations because once approved, the car in question will be placed into a lien and the lender will have complete rights over the vehicle until the loan has been paid or the car’s loan mortgaged is released.
The qualification for a car loan (also a type of a bank loan if the assistance is provided by a banking institution) is strictly based on the credit rating or score of the loan applicant. Along with this, a review of your credit rating, income generating resources, income to debt ratio will be done by the lending institutions to ensure that the borrower will be able to pay for the loan.
In Singapore, there are six steps to follow in applying for a car loan and these are first, to choose the car you intend to buy. Second, preparation of the various loan requirements such a copy of your legal identification, preferably your passport, two consecutive months of your original payroll receipts, proof of employment, credit rating, credit history and your contact number. Third, these documentations along with your application will then be forwarded to the bank. Fourth, if there no required missing documents you will be called in for an interview and if all the necessary requisites have been fulfilled and the bank satisfied, chances are your loan will be approved. Fifth, before the loan is released, you and the bank need to sign documents covering repayment terms and conditions and after all of this have been accomplished, the vehicle will finally be released to you. Singapore today have a number of banks and financial companies providing car loans to various individuals so it would be to your advantage to look for the right lending company that will suit your needs. Remember to compare their various offers so you can determine which one can give you the least interest on your loan.
Flexible loans are type of loans designed to have flexibility, allowing borrowers to change the term of the loan to suit specific situations. The loan is also designed with the specific restriction to protect the borrower from getting into more financial problem. In most cases flexible loans are also quite similar to bank loans only it gives the borrower more leeway in using the funds. Flexible loans are very much like the credit card or a type of an overdraft protection because its mixture of several types of loans. One feature of flexible loans is it allows you to underpay or overpay your loan and no surcharge or penalty is charged to you. Flexible loans can be designed or restricted in various ways. Flexi loans can disburse a single payment but it also allows a borrower to get more money on the loan as long as a sizable amount of it has been paid. A Loan Company can also structure the financial aid to provide the borrower some kind of credit limit so he can just withdraw money from it little by little until the funds run out. The nice part about this type of loan is that even before the fund is exhausted, the borrower can re-apply to have the loan refreshed with additional cash. One very useful function of flexible loans is when an individual is in a situation where he does not know the exact amount of money he would need for a specific expense. For instance, the cost of renovating a house is always never exact. The expense for this kind of activity can either surpass the initial cost estimate or it can be lower. A flexible loan in this case can be very handy because the borrower can always overestimate the amount he needs in order to be secured that that the money he has for the renovation will be enough to cover the expenses.
We are all aware that most lending companies including banks have limits when it comes to providing financial assistance. They usually have very strict and conservative repayment policies that you need to follow and many of them requires some form of collateral from you for the loan. Also it is a way for them to be reassured that you won’t renege on your loan. Flexible loans are most of the time unsecured. If you have a good credit rating or score from the Singapore Credit Bureau, chances are you will not have a problem applying for a flexible loan and at the same time be given a reasonable interest rate on your loan. A little word of caution though, flexible loans can also be problem if the borrower is undisciplined and would tend to overspend or use the reserve funds for personal expenses and not for the purpose they were intended for. These undisciplined borrowers may find themselves withdrawing money for expenses that are not crucial and this will just put them in more financial trouble. These are the people who should really avoid flexible loans because it can become a continual loan resource for them putting them at a very high financial risk and at considerable cost.
Business loans are type of loans provided to specific individuals that is currently operating a business or planning to start one. The financial assistance has a specific amount and its interest is either fixed or variable. Admittedly, this definition is broad and this is because business loans vary and owners need to decide which type of loan would be beneficial to their business. For most business owners who are just starting out applying for a business loan from banks and other lending institution may be a little difficult because there will not be any kind business credit rating to show for. In cases like this, the business owner’s only recourse is to apply for a personal loan the proceeds of which can be used for their start-up capital. As soon as the business gets off the ground, the business owner can start paying off the personal loan and this will finally give him the chance to apply for a much bigger business loan from any Loan Company.
Before a business newbie can apply for any commercial loan, he needs to first establish his business credibility and this can be done by opening up a business credit card account and always paying for the entire loan amount whenever it is due. This will help build the credit rating and history of the business. Second, start buying business equipment and supplies from companies that will give the business a good standing report with Singapore’s Business Credit Bureau and third making sure that the trade has a good business plan with good potential options to earn a reasonable amount of profit, have various letters of intent and types of customer contract already laid out for implementation. Once you’ve establish the business credibility, the business owner can now start contemplating on what type of loan would be beneficial for his business.
The various types of business loans Singapore now available in the financial market of Singapore are the following:
- Terms Loans-this type of loan have a fixed repayment term, interest rate, requires collateral and usually have a fixed monthly payment. This can be used to purchase equipment and other fixed assets for the business.
- Lines of Credit loans-this is a type of loan that allows the lender can provide a loan against anything of value that business owns such as building, lots and other form of valued assets. Lines of credit are usually more fluid since the loan is not exact and you may not need to use the maximum amount that the business is allowed to borrow.
- Factoring or Accounts Receivable Factoring loan-this type of loans allows the factoring institution to buy the business accounts receivable amounts and proceeds to collect on them at a future date and under normal terms. The purchase cost for the accounts receivables can have as much as 97% value, allowing the factoring company (Loan Company) to earn 3%.
Small Business Administration Loans-this type of loan was designed to help in the progress and growth of small businesses. If you cannot qualify for loans that goes through traditional banking processes this type of loan can be of help via one of their three programs.
Faith it seems would always have a hand in giving individual financial problems because, every time you think you have enough financial resources to get you through the month, your car breaks down or a medical expense suddenly arises. These events and more tend to be the cause for you to apply for any type of loans including the short term payday loan just so you can cover the unexpected expense that have come your way. The sad part of it all is that emergency or urgent expenses usually come with the condition that it needs to be settled immediately and this will eliminate the option for you to apply a loan with a conventional loan Company like a bank whose loan processes would take at least a month before it is acted upon by the loan officer. So in immediate cases like this, the most possible resolution is to file for small loans with licensed moneylenders whose policies are more relaxed than those of the banks. Licensed moneylenders offer payday and/or personal loans Singapore and this is the reason why people make them their only options to cover immediate expenses.
The loan processes are very simple and most of them do not require a credit check. All you need to present are proof of income from your employment or business and Presto! You have your loan right away. Isn’t it frustrating that no matter how good you budget your finances, the income that you earn is always never enough. The sad part of it is the need for cash usually comes at the most inopportune moment when you hardly have enough liquid to resolve the financial crisis.
Generally payday loan has many names. They’re referred to as a paycheck loan because they are required to be paid immediately soon as you get your next paycheck; payday advance, cash advance or a more common name of short term loan. In earlier times, these types of loans are usually provided by the employers to their employees but because the policy has been abused by employees themselves, many company started doing away with the practice.
This has given rise for external forces to come up with the idea of payday loans. They even amended the loan procedures to make it more attractive to borrowers. Consider these facts. First that payday loan is provided to the borrower within 24 hours after applying; two, no credit check is necessary and there you get the loan with no questions asked.
Admittedly, payday loans are the most convenient and easiest way to get cash. But there are some things that you should keep in mind before entering a deal with payday loan lenders. First, Make sure that you can handle the repayment schedule. Going beyond the timeline of the due date will tremendously add to your debt. Late charges tend to accumulate into very large sums in just a matter of days. Second, never make the mistake of using a payday loan to pay off another loan. This is like picking up a stone and hitting your head with it twice and finally, makes sure you compare the offer of various payday loan agencies to make sure you are getting the best deal in town.
Singapore is perhaps one of the few countries in the world whose treatment to foreign workers and residents are most ideal. More specifically in terms of borrowing money, foreigner loans are one of the easiest to avail of in this country. Today there are many licensed and legal money lenders other than banks that offer foreigner any type of loans. Even those that have just recently established themselves in Singapore are never turned away when applying for any type of bank loan or personal loan as long as they can show proof of their legal stay and that they have a steady and reasonable income from their employment.
If you are a foreign resident or legal worker in Singapore, there will always be a problem in establishing yourself. For instance, medical expense in Singapore is quite expensive for foreigners because in many instances, employers of expats here only provide minimal subsidy on foreign worker’s medical expenditures. There are also expense issues on the foreigner’s visa requirement and other legal fees that need to be resolved in order for aliens to document and legalize their stay. This is not to mention the high cost of rents. Although in Singapore, a foreigner loan can also be used as a mortgage loan for property purchases.
For a foreigner to avail of financial assistance from licensed money lenders, he needs to present his passport, work permit, valid Employment Pass or E-Pass or a Skilled Worker Pass or S-Pass; he should show proof of employment from the company that recruited him; have an existing residential tenancy agreement; has a bank statement for the last six months; a full time worker certification as endorsed by the employer and should be able to show PUB bills and other utility bills. Most lenders in Singapore would allow foreigners to repay back their loan through monthly amortization and they usually offer flexible loans to make management of the financial assistance easier. The structured repayment terms are usually easy to understand and comply with and the loan process is usually short. Also, many of these lending institutions have linguists to interpret discussions between the lender and the foreign borrower.
A foreigner needs to be aged 21 to be able to apply for a foreigner loan and the most important thing for the foreigner to remember is to be sure of the type of loan he would need. However, there are a few things that the foreign borrower should be wary of. First, he or she should never fill up a loan application unless he or she is sure of the rates that would be charged for the personal loan for foreigners in Singapore.
Filling up a loan application without knowing the rates may put the borrower in very compromising position because as soon as they sign they are already agreeable to the terms and condition of the pay day loan. Second, make sure that checks issued to the lenders will not bounce because this will definitely incur high surcharges and penalties. Finally, as a foreigner always second think your action before filing for the loan because like it or not, any type of loan would put you in a position that you would have to pay a lot of money to pay back the financial assistance.