How to get a loan approved is the basic problem that most loan applicants face. The basic answer to this query is that for any type of loans, approval will rely heavily on how Loan Company officers will rate your risk factor if ever your loan is approved. The risk factor is very important to lending companies when they try to see if you are a good fit to be provided with a monetary assistance or UOB gold from Singapore pawn shop.
This is usually determined by the way you have filled and answered the basic question on your loan application and financial documents submitted. Basically, there are two important questions that require answers when you file your loan application.
The first question is whether you are a good or bad risk for the lending company and the second is whether the lending company will lose or earn money by providing you the loan. If both questions lead to positive replies, then you must have given the lender detailed and factual information relative to your capability in repaying the loan.
Therefore the first finance tips for the day is to make sure that the information you have specified in your application and supporting financial documents will give the lenders the confidence that you will make good on your loan.
Second, make sure that you have at least an average or preferably above average credit score from Singapore’s credit Bureau. Credit scores usually range from 400 to 850 so the higher your credit score is, the better are the chances that your loan will be approved. For security purposes, it is advised that your credit score should be in the vicinity of 700 or more to ensure better chance of approval. Third, make sure that your credit history will show that your past and present loan obligations are paid on time. However, loan official will not base their approval on your credit history because it cannot really determine whether or not you will repay the loan.
However, your credit history will show whether you have managed your previous and current loan obligations properly and knowing this is an indication on how you will again manage your debt obligations in the future. This is an important issue to the lender. Fifth, your employment history is another important factor in having your loan approved. Lenders would want to be sure that you have a job with tenure and that you are earning enough income to guarantee that you will be able to meet your monthly payment for the loan. Finally, you will have to show proof that your debt to income ratio is balanced. Lenders would want to make sure that after expenses, you would still have enough financial resources to meet your loan obligation with them.
Also in this regard, it is also wise to provide some kind of collateral for the loan, especially if the amount involved is quite large. Having collateral for the loan will ensure and give confidence to the lenders that they would have something to get from you in the event that you can’t make good on your loan.
It is common knowledge that owning a car in Singapore is more of a luxury and this is perhaps because of the Government Officials early realization that too many vehicles on their thoroughfares will soon result in uncontrollable traffic problems. Limiting the ownership of vehicles in Singapore have proven to be most advantageous for the country, but the fact remains that there are individuals and families here who would still want to have ownership of a brand new or a very good second hand car. Although there are strict regulations when purchasing a car in Singapore, it is still very much possible to own one, but the prohibitive cost of vehicles has pushed would be car owners to file for a bank loan, or more specifically for a car loan to finance the purchase of their dream car.
There are very strict rules to follow before one can purchase a car in Singapore so there is a need to understand the pre-requisites in applying for a car loan in Singapore. First off, purchasing a car in Singapore can be very costly for the buyer because applying for one is almost as difficult as when you are applying for a home mortgage loan.
Car buyers here should realize that in addition to the Open Market Value (OMV) of the car, a prospective car buyer must also pay a tiered Additional Registration Fee that fluctuates to as much as 180% of the OMV. There is also the Certificate of Entitlement or CoE, Goods and Services Tax, Excise Duty, Road Tax and the all important parking Fees that the soon to be car owner would have to pay. Secondly, a car buyer should be aware that the type of loans available for vehicles with an Open Market Value of about 20,000 dollars will be limited to only 60% of the cost while those with more than 20,000 dollars price tags will be capped by only 50% loan amount.
Third, the best way to avoid the high cost of purchasing a new car is to opt for a good pre-owned car. Selecting to buy this kind is the better alternative because the purchase will come out cheaper. Aside from the money saved, there will be less waiting time for you to get the necessary approval and documentation for the vehicle and there will there be no more need for CoE bidding. Also, the transfer fees that you would have to pay for the sale will be relatively small.
Fourth, once you’ve decided whether to buy a new or a pre-owned unit, you have to decide to which licensed moneylending company Singapore to file a loan application with. Compare their interest rates and repayment schemes and find out which would best suit your financial status. Fifth, the financing options that you have selected should also be beneficial to your particular credit status. Sixth, choose a financing company that offers the lowest interest rates and finally, make sure that you have done all of your homework relative to buying a new or pre-owned car because this is the only way that you will be able to save money in the end.
Statistics show that out of 10 individuals working in Singapore today, 6 are citizens of the country, 1 is a permanent resident (or immigrant) and the remaining 3 are usually expats or aliens from a foreign soil. It seems that Singapore is one of the few countries in Southeast, where foreigners are quite attracted to reside or to start a new life in. The main reason for this is the benefits and privileges that Singapore gives her foreign residents.
The Singapore Economic Development Board or SEDB have continued to draw foreigners into the country by giving them almost the same privilege a natural born citizen enjoys and this in turn have encouraged these aliens to contribute to the country’s economic growth. Today these foreign residents enjoy most of the rights and duties of Singaporean Citizens like eligibility for government-sponsored housing, adult national services, and more importantly, access to apply for foreigner loans to any financial institution of the country.
One of the most common loan applications filed by alien residents of Singapore is a home mortgage loan. However, there are some limitations on the loan that is prescribed for foreign residents, but the process and approval waiting time is the same as that of a natural born citizen. One limitation is that foreigners are only allowed to have 70 to 80% leverage from major banks in Singapore but they can acquire a loan of more than 80% of the total cost of the property but this will depend entirely between the agreement reached by the moneylending company Singapore and the borrower. Foreign residents here in Singapore today are given flexible policies when it comes to purchasing properties. For instance, there are properties that carry some restrictions when being sold, but foreigners are given access to these types of properties as long as they can get approval from the national government’s land authority department.
Any type of loans for alien residents in Singapore is quite easy to apply for and if one qualifies, he or she only needs to submit few key documents such as work permits, national identification card, Salaries and other work related documents. The loan is treated by the lender as just like any other type of financial assistance where an interest is placed on the loan and a repayment term is stipulated for the borrower to follow. One drawback however is that most foreigner loans will have a slightly higher than normal interest rate and this is because of the assumption that most alien residents will not be able to easily offer any form of collateral.
The repayment period for this type of a bank loan is also shorter that standard loans provided to Singaporean citizens. This is usually the case with expats and other types of foreign workers whose stay in the country is a short one. In general, however, the amount of repayment time given to a foreigner for his loan will depend entirely on the amount of money that he or she has borrowed, the less money provided for the loan, the shorter time is required to pay it back.
Having a bad credit rating can be quite a problem today, especially for people that highly depend on the type of loans to get them through various day to day expenses. The worst part of it all is that most of the time, being placed in the category of loans for people with bad credit rating is really not the fault of individuals but is actually caused by the circumstances that have befallen them. Incidents such as losing their job and other economic reasons are usually why these people are unable to pay their bank loan obligations thus affecting their credit rating or score. However, it is not the end of the world if you get into a situation where your credit standing has gone bad because there are ways and means to reverse the situation. It may take some time for you to re-establish your bad credit rating, but if you try hard enough, it is quite doable. First, you have to understand that there are three important things that a Loan Company will highly consider before granting you any type of loans and these are your credit rating or score, your income and employment history and your total debt servicing ratio or TDSR.
Taking into consideration these three important things, the following are some finance tips to help you recover from a bad debt rating situation. First, you will need to find a way to pay off all your existing payday loan sg and credit card bills. This may sound impossible but if you believe in the saying that all problems have definite solutions then you will be able to find or at least plan a way to pay off your current debt. It may take a while, but this is a very manageable problem. Second, make sure that you land a steady job. Again, this may be hard, especially with the current economic situation at hand. However, it is not a job per se that is required of you, but proof of having a steady monthly income. Remember that with a little ingenuity and perseverance, you will be able to find a way to earn a steady income. Third, you can start a small business by applying for best personal loans Singapore.
There are money lending companies in Singapore that will allow you to borrow a certain amount of money as long as you can prepare and submit to them a business plan that would should at least a 70% success rate. If approved and your business gets off the ground, then this will allow you to earn enough to pay off some of your previous debt obligations. Fourth, if your credit card is still active, make small purchases on it. Being able to do this and paying it back promptly will give a positive effect on your credit rating. However, make sure that the purchases you make on the card are reasonable and small such as for just paying for groceries and meals. Also make sure that you don’t apply for a new credit card and refuse a pre-approved one. Also, don’t cancel your active credit card because doing any of these three will affect your credit score tremendously.
New businesses or existing ones will sooner or later need some type of business loans for the purpose of augmenting a company’s start-up capital or to help existing ones cover increasing expenses of their trade. For most newcomers in the business community type of loans or financial assistance are normally realized from bank loan, business line of credit, business grants or financial aid from the private sector.
This different financial assistance usually provide various options, advantages and disadvantages so it is necessary for the businesses to carefully weights the pros and cons of availing any of these financial aids. Business loans availed from banks often facilitated by the financial institutions if the loan applicant is able to produce and present a profitable business plan to the bank.
A personal loan Singapore availed from either pawnshop or a Loan Company such as banks or other conventional financial institution also has a better chance of being approved if the applicant is a well-known client of the finance company. A line of credit loan on the other hand works like a credit card.
Here the lending company provides a specific amount of money that is placed in a standby mode. This allowed the case to be easily accessed by the client at the time when it’s needed. Interest for this type of assistance is based only on the amount of cash used and when the loan amount is already paid off, the credit line is refreshed by the bank and is once again available for use by the client. Business grants are another type of loans that is used to fund start-up capital for new businesses. This is perhaps the most ideal kind of financial assistance considering that business grants do not need to be repaid by the business owner.
However the drawback here is that the amount provided is usually not nearly enough to assist the start-up expenses of the business, thus allowing the borrower to seek for other means of getting additional loan. Business grants are cost effective methods in helping businesses get off the ground. Another type of business loans comes from private investors. These investors are usually personal or professional acquaintances, family member or just individuals interested in the kind of trade the business is in.
Instead of asking for a full payment for the loan most private investors would prefer a percentage of the sales of the business for a specific period of time. To summarize, most new businesses require a particular loan to help in the success of getting the business off the ground.
For businesses that are already in existence, there are several reasons why they may need some form of financial help such as flexible loans. The funds are normally used for business expansion, to cover unexpected operational expenses or to simply make additional inventory purchases due to the increasing numbers of clienteles. A Business loan is a good way in keeping businesses afloat especially with today’s continuing rise in market competitions.
It is also the best way to upgrade or modernize your business to make it more competitive with other companies whose business portfolio is very similar to each other.