Many people wonder if they can get a loan if they do not work for a longer time or if they can contract a licensed money lender in Singapore to borrow some money if they do not have an income. The topic is not complicated, as some things are pretty obvious. Banks and lenders ask for proof of income as they need a guarantee that they will receive their money back once they borrow it from someone. You can apply for a loan without any income, but that means you need to guarantee it with other valuables, your car or even your house.
Many people would never turn to someone or an entity to borrow money, but nowadays, it is pretty hard to achieve ding different things without turning to a loan. If you buy a house, even if you have some money to give in advance, you will still need to borrow from the bank or non-banking entities to cover the rest. These days everything is expensive, salaries are not so big, therefore big things such as buying a car or a house will need you to borrow money.
Loans Are a Necessity These Days
People often turn to a licensed money lender in Singapore because they know their conditions are not so harsh when borrowing money. Even if you do not have a particular source of income, you can borrow money, but you will be asked for different guarantees. As earlier said, one of these is a valuable asset you may have, such as a car, house or other things with high value. Another option is to have a guarantor who has a stable income. That is an option, but you need to be realistic here, who would do such a thing these days for someone else?
Something you can try before contacting different institutions in Singapore is to ask your friends or family for a loan. The problem is that if you need a huge amount of money, the probability that someone can give you so much is minor. After all, everybody has their needs, and it is not a decision someone can take easily, specifically to block a huge amount of money. Many people usually do not want people around them to know they struggle with money or need big amounts to borrow. Therefore financial entities come as a natural option.
You can apply for a loan if you are an adult. Therefore, this is one criterion that is a must. As you can see, you may need a stable income, or you have the possibility to borrow money without it, but you need to offer certain guarantees. In both cases, you need to be sure that you get all the information regarding all the conditions and the obligations you have. Analyze all the terms to know what you get yourself into and ensure you can return all the amount.
Get All the Info from the Licensed Money Lender
The licensed money lender will evaluate your financial situation, as this is a crucial step when you want to borrow money. That is something you should also do before you contact a lender. See what your finances look like, put on paper all your family incomes, get the monthly expenses out and see what is left so that when you borrow money, you know what money you have available to pay in installments. It is essential to know your possibilities so you do not spend more than you can afford.
Each expense matters. Do not let anything out, even gasoline or bus tickets are an expense that you need to consider. Everything you pay monthly must be considered so that when you borrow money from a bank or non-financial lender, it is not a surprise to all their calculations. Making a list of everything you spend money on will also help you see if you have some unneeded expenses you could avoid in the future or if there are situations where you could save some money. Believe it or not, every penny matters.
Try Different Strategies to Pay Your Loans
Did you know that many people in Singapore have different repayment strategies that help them easily get rid of their loans? For example, one of these strategies is first to pay the most significant loan and keep only the smallest one. You can also choose to pay the loan with the highest interest rate, and after you manage that, get to the next one based on the same criteria. Something you should avoid is getting another loan thinking you would take it to pay the first one. Usually, that does not happen when you have the money in your hands.
Initially, the idea is to get rid of an old loan and maybe you remain with something left for other expenses. That does not always happen. Once you get the money, you remember there are other necessities, and without even realizing it, you can get yourself two loans that need to be repaid. The best thing you can do is to pay the money you borrowed, and after that, if you still need a certain amount for a particular thing, you can go to a bank or to lenders to see your best option.
An Emergency Fund Can Be a Real Help
Even in many situations, it may be hard to put some money aside, but you should consider creating an emergency fund, even if you put in a small amount every month. Usually, a fund should have practically the money that covers your basic needs, but let’s be honest, that means pretty much, and maybe you do not have that amount of money. That does not mean that you should give up the idea. No matter the amount you put aside, as little as it is, in time, it will grow, and when you most need some money, you will have something aside from where to take.
To ensure this emergency fund increases its value, you should prioritize it. That means that when your salary enters, you should put something in the fund and take care of any other expenses later. Quickly, all this money will turn into a considerable fund that will be the best thing possible when you need a certain amount and do not want to contact a licensed lender. Many people want to avoid borrowing from a third party, but sometimes, this may be the only option left.