Borrowing large amounts of money from licensed money lenders can be confusing and daunting. This is especially true if you are new to taking up loans or aren’t fully aware of the steps that you should take. A personal loan broker in Singapore can help to ease your burden and aid you in making a more informed decision.
What is a loan broker?
In Singapore, it’s common to hire a business loan broker to help acquire funds for a company or business through a bank or licensed money lender. Similarly, a personal loan broker in Singapore acts as a middleman who helps you to acquire a personal loan. These finance experts will factor in your loan requirements and eligibility as well.
Four reasons why you may need a personal loan broker
1. They help you save time
Hiring a personal loan broker is especially useful if you don’t have the time or energy to look for the right kind of loan for your needs or the best loan options that are available. After all, there are over 150 licensed money lenders in Singapore. A personal loan broker in Singapore is well-equipped with the knowledge and experience of sourcing the right loan type for their clients and they’ll take on the burden of searching for the perfect option for you.
2. You get to preserve your energy
It’s especially difficult to put aside the time and energy to research personal loans or even narrow your options down if you’re currently short of cash. And if you’re working long hours every day, researching loans would probably be the last thing on your mind. A personal loan broker takes that worry off your mind, letting you prioritise and focus your energy on work.
3. They stay updated with the rules and regulations
Personal loan brokers are up-to-date with the latest regulations for loans in Singapore. This is part and parcel of their occupation, after all. Therefore, all competent personal loan brokers will be able to easily share with you the various loans that you are eligible for based on the latest regulations.
4. They help you meet the loan eligibility criteria
As personal loan brokers would have a better understanding of each individual loan’s criteria, they will help you to source for 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 on that as well.
You can count on your personal loan broker to explore alternative funding options. These individuals are resourceful and would have multiple strategies in case things go south.
Advantages of getting a personal loan broker in Singapore
A personal loan broker is usually:
- Knowledgeable in the latest loan regulations and eligibility criteria
- Experienced in discovering loan opportunities that you might have missed
- Able to find you the best loan for your financial situation
- Able to analyse all your available options and help you make a more well-informed decision. One example would be whether you need a payday loan or a 12-month cash loan.
- Well-connected, allowing them to find a range of loan options from their network for you
- Able to pinpoint reasons why your loan application was rejected and come up with solutions or alternative options
Considerations of getting a personal loan broker in Singapore
If and when you do decide to hire a personal loan broker to help with your financial needs, you should draw up a requirement checklist beforehand.
You should ensure that:
- The personal loan broker is legitimate and operating legally in Singapore
- You clearly know the charges for the broker’s services and whether their commission is payable after a successful loan approval or even when your application is rejected by the bank or licensed money lender
- You are fully aware of all the terms and conditions of working with your personal loan broker before hiring them
After your personal loan broker shares your loan options with you, you will need to assess if:
- You can afford to consistently repay at least one of the option’s monthly instalments
- The interest and any additional charges are within your budget
- You meet the loans’ eligibility criteria. Fortunately, your broker will usually advise you on this, but it is still good to confirm this to avoid applying for loans you’re likely to get rejected for.
How do you choose a good personal loan broker?
If you’re keen to hire the services of a personal loan broker in Singapore, you have to bear in mind the importance of trust. The loan application process takes a lot of effort and it might not be something that you’ll go through only once. Therefore, find a personal loan broker you’re comfortable working with.
Word-of-mouth can go a long way when it comes to choosing the right personal loan broker. Speak to friends and relatives who have had a positive experience with a personal loan broker. Their own experiences will help you to make a more informed decision when selecting a personal loan broker. Do not underestimate the importance of personal recommendations.
You should also be aware of some red flags from the broker themselves. If a broker overpromises or guarantees a successful loan approval without any proof or even before assessing your disposable income, it’s highly likely that they might be over-promising. Remember, the final loan approval lies with the lender after all.
Can you still secure a personal loan without a broker?
Absolutely. If you do not wish to engage the services of a personal loan broker and prefer liaising directly with the lender, Dio Credit is one trusted licensed money lender in Singapore that can give you the best rates and recommendations.
If you need a personal loan, payday loan, or any other loan type, our experienced and friendly consultants will be able to recommend options that work best for your financial needs and situation. Apply for a loan with us now!
