Are you looking for a home renovation loan, a medical loan or perhaps a debt consolidation loan in Singapore? Borrowing money nowadays for immediate funding is not as difficult and hassle as it was decades before. Many are, in fact, more familiar with all the options available from money lending institutions and banking firms.

In times of emergency where we need to secure funding immediately, make a substantial purchase or consolidate our debt, we all have our own personal reasons for the loan. If you’re someone who wishes to opt for a loan, it’s worth thinking about several things before you make a decision. Failing to think about things prevents you from making a smarter move to keep up and deal with the repayments.

What To Consider Before Applying For A Loan?

Whether you’re planning for a marriage loan or a home renovation loan in Singapore, it’s critical that we consider first a few things ahead before we decide to borrow:

Determine the purpose of the loan

Regardless if it’s for personal or business use, before you approach a money lending institution or a bank, think carefully about the purpose of the loan you want. In fact, plenty of lending firms can determine the importance of loan factors in accordance with your reasoning. When filling out loan applications, you might come across a section that asks for your purpose.

Whether it’s for a business overdraft or for making an enormous purchase, know if it’s something you need and can afford to pay for within a given timeframe. Otherwise, you might be positioning yourself for unnecessary stress and the burden of paying loans you don’t actually need. So think about it before approaching a lender or credit company in Singapore.

Know the right type of loan you will need

If you aren’t in the know and it’s your first time, conducting homework research about various loaning options will help. For starters, different types of loans are available for different situations, from payday to mortgage and debt consolidation.

On the other hand, in the realm of business, one can opt for startup needs, invoice factoring, working capital, etc. Misuse can lead to excessive interest rates in the repayment, especially if you’re planning to opt for a business-type loan. Knowing the loan you need is critical, so the next time you approach a money lender, you already have in mind what you’re getting up to and what you exactly need.

Know if you can repay it per month

When deciding to borrow money from a licensed money lender in Singapore, another thing to ponder is if you can actually afford to pay it every month. In fact, it’s the most significant factor of all. Hence it is critical that you are not facing any financial instability and you will not end up crippling yourself after paying the debt.

Otherwise, you’ll end up in a stressful problem if you aren’t capable of paying off your debt. Some loans will put your asset at risk if you fail to maintain payments in the long run.

Avoiding Rejection When Applying For A Loan in Singapore – What You Need To Know

It does not feel good when you are rejected for something, especially if you need to make secure payments for a medical emergency or consolidate your debt. Applying for a loan can bring an amount of anxiety and uncertainty for someone who isn’t confident that they will get approval in time. Whether you’re planning for a payday or home renovation loan in Singapore, it sure feels nice when you receive that thumbs-up for your application.

So you might be wondering why some loan applications end up being rejected by a money lender. Find out why and what you can do to avoid it from happening to you!

Avoid having a bad credit history

One of the most significant deal breakers for money lenders is applicants with a problematic credit history or credit score. Bad credit history means the borrower always fails to maintain payment, defaults on debt payments, your credit card issuer refuses to lower your APR, and your issuer closes your credit card. Taking a loan entails a payment obligation. Paying on time to your licensed money lender can prevent you from earning poor credit scores.

Meet the income requirements

Plenty of financial institutions and banking businesses will require you to meet the minimum annual income when applying for a loan. So if you have a lower income that does not meet their minimum requirement, you could be in a position where your application is likely to get rejected. However, not every money lender in Singapore has a minimum annual income requirement for applicants, which can be a relief for many!

Consider any existing loans if you have one

If you are dealing with existing loans (which means you have not fully paid them yet), consider prioritising them first before applying for a new loan. On the other hand, if you are in an urgent position to apply for a new one, ensure that you factor those into your budget to ensure that you are comfortable and confident to afford the current and upcoming debt payments.

Always check the eligibility requirements

To avoid being rejected by a credit company or money lender, you need to see to it that you are eligible for the loan before making any steps in applying. In return, it gives you more confidence and higher approval ratings than just trying out for luck.

If you are looking for a home renovation loan or debt consolidation loan in Singapore, visit Monetium Credit for a licensed and reputable money lending institution!