While borrowing from a moneylender, you are responsible to cooperate to ensure the entire process is smooth and hassle-free.
Although on the surface, it seems it is the role of a moneylender to make the loan application process for the borrowers they are dealing with, as a borrower, you have a role to play, too.
Therefore, in this post, we’ll discuss everything you need to do to ensure a stress-free process.
6 Ways to Ensure Effortless Loan Application Process
1. Borrow Within Your Financial Means
Money lenders with licenses will always ensure your ability to repay the loan before they can approve your application. Each time you borrow within your means, the chances of your application getting approved are higher, for you show the lender that your borrowing is within your ability.
The application for an amount that suits your income and payback capacity minimizes the need for deep scrutiny of your loan application and reduces concerns about your timely loan return. This is probably one of the exercises you can do to better your chances before approaching a lender for a loan.
2. The Choice of the Right Loan Product
Due to the many licensed money lenders in Singapore, there is a need for loan products, ranging from personal and payday loans to business or foreign loans. The right product choice increases the chances of loan approval and accelerates the process of getting approval. Awareness of one’s needs and choosing an appropriate product would save time and effort, as business loans may require more documents.
Notably, applying for a payday loan to cater for emergencies that require a small amount of money gets approved faster. This is because the amount is smaller, and the payback period is shorter.
3. Prepare Necessary Documents in Advance
Every licensed money lender will have some requirements for specific documents, such as proof of identity, income, and other information. Therefore, preparing such documents is a prerequisite to ensuring your loan is approved smoothly.
The general documents required include but are not limited to NRIC or passport, proof of residence, payslips or income statements, generally for the last three months, bank statements, and an employment letter if you are a foreigner. Having these documents ready well in advance and updated will avoid unnecessary challenges.
4. Be Transparent on Your Financial Situation
Transparency is paramount from the point of application for a loan facility. Lending institutions welcome clients who present genuine and accessible information regarding their financial status. This is because this ascertains trust and presents the lender with a better way to assess risks. If you happen to have other debts, state this right away.
Transparency will show the lender you are responsible, organized, and concerned about handling your credit responsibilities. It may even lead to quicker approval or more favorable terms for the loan.
5. Enquire about Repayment Terms and Interest Rates from the Moneylender
The approval process will be smooth if the repayment terms and interest rates are evident from the beginning. According to the law, a licensed moneylender in Singapore is bound to show the interest rate and other repayment terms to its debtors.
Therefore, on the borrower’s part, it is pretty relevant to go through the terms and conditions carefully before applying. Any ambiguous information must be discussed with the lender before applying to avoid any misunderstanding later.
6. Be Responsive During the Application Process
After submission, you must be responsive if further communication with the lender is required. For instance, they may need some information or clarification of specific points. Therefore, respond to calls, emails, or messages on time to keep everything going smoothly without any obstruction. Keep your phone and email accessible, and ensure you deal with the lender’s request as a priority.
Generally, applicants who stay proactive and promptly provide additional information will likely obtain approval sooner.
Conclusion
Loan approval from a licensed moneylender in Singapore can be smooth if the borrowers are proactive and collaborative. The borrowers’ willingness to corporate reduces the effort required to get the loan approved, as they know what is expected of them, choose a licensed money lender, get their documents ready, choose the right loan product, and keep all lines of communication open.
Mainly, the whole process becomes less cumbersome if one remains organized and responsive during the whole process.