If you are thinking of borrowing money, then there are certain precautions that you need to take to ensure that you are. Read on as we discuss some of the significant precautions to consider before applying for fast approval loans in Singapore.
Are You Eligible to Borrow?
You should start by asking yourself if you can afford to borrow money. Most people don’t understand the importance of this question. An answer to the question “Can I afford the amount I am borrowing?” is pretty simple. First of all, make a detailed budget and include all your household expenses in it.
For example, utility bills, monthly expenses for food, educational expenses and transport expenses etc. Also, you can have a look at your previous months’ expenses by getting your bank statements. This will help you to calculate an amount of money that you can save each month. Therefore, you will be able to know very well about the amount of money you can borrow from a fast cash loan in Singapore.
Be Aware of Hidden Charges
Next up is ensuring that your instant cash loan contract does not have any hidden charges. People often borrow money without knowing about any hidden costs that are associated with it. This risky action leads them to regret their decision, and in fact, some are even forced to go into further debt.
To save yourself from getting into such dire financial crisis, do get your money lender to educate you about all the charges that you have to pay, something which legal money lenders have to disclose. Firstly, you should make sure that you return the borrowed amount of money before the due date. This is because if you don’t, you will have to pay a considerable amount of late fees.
Secondly, a fast cash loan from legal money lenders in Singapore can charge a maximum of 10% of the total percentage of the loan as upfront fees. You should know that upfront fees should not exceed 10% of the original loan, if someone is charging more, then don’t bother dealing with that money lender as he or she is probably unlicensed. Lastly, no fast cash legal money lender in Singapore can charge more than 4% interest on the whole amount of loan monthly. If you think you can afford to pay all these charges each month, go ahead and borrow the money.
Consider Borrowing from Relatives
Think thoroughly and decide if you can borrow money from one of your relatives. This can be a difficult choice, but it can save you from high-interest charges, late fees charges and other money lending charges. And if it is okay with your relatives, you can repay them after a long time without denting your relationship with them. In other words, you can borrow money from your relatives on your terms.
Apart from this, there is just one thing to consider before doing so, and that is making sure if your lender is in a financially sound position. Don’t ask family members who themselves are running on a tight budget to lend you money as if you don’t repay them on time; things can get ugly. This can really frustrate your relatives, and it can easily hurt your relationship with them.