Opting for a personal loan in Singapore does not require too much hectic as one can have this loan without collateral or security. But many find it tough to manage loans they have taken and find a policy to consolidate them all. Here comes the idea for private money lenders debt consolidation Singapore.
Brief on debt consolidation plan in Singapore
A debt consolidation plan seems great for those with many outstanding loans who want to consolidate them. A debt consolidation plan is the best way to join all your outstanding and convert them into a single loan.
A debt consolidation plan is a convenient way through which you don’t need to make several repayments. Several licensed money lenders or financial institutions offer exclusive debt consolidation policies. As per the norms, borrowers need to make a single repayment every month. This is a good option as no one will miss any loan repayment.
How does this debt consolidation plan work?
As per this plan, borrowed money can be repaid in equal instalments. The interest rate for the personal loan debt consolidation plan varied between 3.12 to 12% per annum. Borrowers can make the repayment in 1 to 10 years.
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Which loans cannot be consolidated?
No doubt, debt consolidation plans seem one of the most effective solutions to repay all loans jointly per month. But, borrowers need to understand that not all loans fall under the debt consolidation plan. This consolidation plan is only available to those loans which don’t require collateral or security.
Borrowers can opt for a debt consolidation scheme if they have unsecured loans, credit cards, personal instalment loans, etc. Apart from those, educational loans, proprietary loans, etc do not come under debt consolidation plans. Business loans can also not be combined with unsecured loans to enjoy the facility of a debt consolidation scheme.
Who are eligible for it?
All borrowers are not aware of the eligibility for debt consolidation schemes. DCP is available only for those Singaporeans and citizens who are permanent residents in Singapore. Moreover, persons having an annual income between S$20000 to S$ 120000 can get of this plan. As per the norm, the total asset cannot exceed S$2 million.
Documentations require for DCP
Individuals who want to get the benefit of DCP need to arrange the following documentation.
- NRIC and report of the credit bureau
- Updated income statement
- Statement of updated credit card, personal loan and unsecured credit.
Many also have queries about whether they should opt for licensed money lenders or Banks. Well, banks follow various stringent rules which can reject your application. So, opting for licensed money lenders is always the best option. You can also look for an online money lender Singapore to avail the best scheme.
How to differentiate between licensed and unlicensed money lenders?
No doubt, a debt consolidation plan comes with huge benefits, and hence borrowers are always in a hurry to select the best money lending company. Many times they don’t check whether these companies are genuine or fake. Especially if you are opting for an online money lending company, there is a huge chance of getting duped. Here all need to check the following points before selecting the money lending company.
- Terms and conditions
A licensed money lending company will always let you know about the terms and conditions before signing the contract. However, an unlicensed company will never let the borrowers know about the terms and conditions & they will never provide a loan contract.
- Fixed interest rate
Licensed money lenders need to follow the norm of the Government in case of charging a rate of interest. No money lender can charge more than 4% interest per month. But unlicensed money lenders will never follow this norm.
- Advertisement
Licensed money lenders can advertise only via consumer directories. These companies can advertise within the premises of their business place. But, if borrowers notice any advertisement of money lending companies via other commercial channels, these companies are not licensed.
- Loan amount
Licensed money lending companies can offer loans as per the Government rules. But, unlicensed companies do not follow these rules and offer any amount of loans to borrowers.
Apart from those above, licensed money lending companies will never threat or blackmail the borrowers. At the same time, an unlicensed company can take any action to get its money back. Well, those above are the price factors to consider while you are going to select a money lending company for debt consolidation.
Personal loan facilities for low-income group
No one knows when emergencies will occur, and you will need liquid cash to meet the emergencies. Loads of facilities are available that will help you to get personal loans even if your earnings are low. You can opt for a credit card loan, a loan from a licensed money lending company, etc, to meet the emergency need.
Final Takeaway
The above guidelines will help citizens in Singapore to available personal loans and opt for debt consolidation plans without any hassle. Individuals need to check the above details and check relevant factors before selecting a money lending company for DCP. If you are in the low-income group, you also can check here for How can I get personal loan with low salary and avail the best loan scheme.
