Borrowing large amounts of funds from banks or licensed money lenders can be confusing and daunting, especially if you are new to it or aren’t fully aware of the right steps you should take. A personal loan broker in Singapore can help take your mind off some of the potential challenges.
What is a loan broker?
In Singapore, it’s pretty common to have a business loan broker to help out with acquiring funds for the company or business. Similarly, a personal loan broker in Singapore acts as the middleman who helps you acquire a personal loan, depending on your requirements and eligibility.
Why you may need a personal loan broker
Helps you save time
Getting a personal loan broker might be especially useful if you don’t have the time or resources to look for the right kind of loan or the best loan options in the current market. A personal loan broker in Singapore is well equipped with the experience of sourcing out the right loan for your needs and will take the burden of researching options off for you.
Preserves your energy
It’s especially difficult to spare extra time and energy researching your personal loan options or narrowing down your options based on eligibility criteria if you are already short of cash and/or are already working very long hours. A personal loan broker can help take that burden off from you so you can prioritise and focus your energy on your work.
Keeps up with new regulations
Loan brokers will usually keep up-to-date with the latest regulations for loan services in Singapore, as it is part and parcel of their work. Hence, they would be able to share with you the loans you are eligible for based on the new regulations.
Helps you meet the loan eligibility criteria
As brokers might have a better understanding of individual loan criteria, they will help you find loans that you will likely not be rejected for. If you’re worried about your credit score, or whether you need alternative loan options, they will be able to advise you as well.
You can count on your personal loan broker to explore alternative funding options as they are usually resourceful and would have multiple strategies in place just in case things go south.
Advantages of getting a personal loan broker in Singapore
A personal loan broker is usually:
- Knowledgeable in loan regulations and eligibility criteria
- Experienced in finding loan opportunities you may have missed
- Able to find you a low-cost loan
- Able to analyse all your options for you to help you to make a better informed decision (such as whether you need a payday loan or a 12-month cash loan, etc)
- Well connected so they can find for you plenty of loan options from their network
- Able to pinpoint reasons why your loan has been rejected and come up with solutions or alternative options
Considerations of getting a personal loan broker in Singapore
If and when you’re considering getting a personal loan broker to help with your financial needs, it’s important that you have a requirement checklist beforehand.
You should ensure that:
- The broker is legitimate to operate legally in Singapore
- You know the charges for the broker’s services and whether that commission is payable after successful loan approval or even when your application is rejected.
- You are fully aware of all other terms and conditions of working with your broker before committing to working with him/her
After your loan broker shares your loan options with you, you need to assess if:
- You can afford to pay off your loan in the agreed installments
- The interest fees or additional charges payable for the loan are within your budget
- You meet the loan eligibility criteria (your broker will usually advise you on this, but it is good to confirm this beforehand to avoid applying for loans you might likely get rejected for)
How to choose a good personal loan broker
If you’re keen to work with a personal loan broker, you have to bear in mind the importance of trust between you and your potential broker. The loan application process takes a lot of effort and might not be a one-off situation. It’s important that you find someone whom you’re comfortable working with.
Word-of-mouth can go a long way in choosing the right broker for you. Speak to friends or family who have had a personal loan broker who had successfully acquired loans for them. Their experiences would guide you to make more informed decisions. Do not underestimate the importance of personal recommendations.
You should also be aware of some red flags. If a broker overpromises or guarantees successful loan approval without proof or even before assessing your disposable income, it’s highly likely that they might be overpromising as the final loan approval lies with the lender or credit approver.
Need to secure a personal loan?
Dio Credit is one of the trusted licensed money lenders in Singapore that can give you the best rates and recommendations. If you need a personal loan, our loan consultants will be able to recommend options that work best for you. Apply for a loan with us now!
