When it comes to borrowing, it is vital to confirm the actual interest rates offered by the lenders. Thus, you need to read through the terms and conditions in the loan agreement to check any hidden fees or clauses. Pick licensed lenders that offer transparent interest rates and repayment schedules spelt out in writing. If the contract contains anything unclear, clarify these details with your lender before signing the loan application form. Most importantly, be sure that you completely understand the facts presented in the agreement before signing anything with licensed lenders. You should write the draft submitted to you by the lender in a language that you can read. In any disputes, you may also want to consult a lawyer who can advise you on your legal obligations.
Blindly signing any contract will only put you in a tight spot eventually. Therefore, if there are items specified in the agreement that you are unsure of, we recommend that you take the time to understand the clauses. While We aim to give convenience to the loan process, it is ultimately your own choice to take out a loan from a particular lender or find another one that meets your concerns.
Things you should know on borrowing:
- Maximum Time for Repayment: Up to 12 Months
- Minimum Annual Percentage Rate: From 1.7% per annum
- Maximum Annual Percentage Rate: Up to 48% per annum on reducing the interest rate
Sample representation of loan:
Total Amount Borrowed: SGD 1000
Time Period * 12 Months
Interest Rate ** 1% Per Month
Total Cost Payable Per Annual *** SGD 120
* Time period is from the minimum period of 2 months to a maximum period of 12 months.
** Interest Rate may differ up to a maximum of 4% per month, depending on loan amount and period of repayment.
*** Total Cost Payable excludes administrative fee and loan principle. The cost stated is an estimation and may vary due to loan amount, period of the loan, and they may charge other fees such as late fee and late interest rate in violation of terms & conditions.