Consolidation loan in Singapore has seen an uptick in popularity as more people realise the myriad advantages it can afford them. Besides demystifying your financial status, a consolidated loan can also simplify your budget because all payments are funneled to a single creditor.
However, it can be a challenge to obtain a consolidated loan in Singapore if you do not have a good credit score. Traditional lenders such as banks give preference to well-established businesses and individuals with good credit. This approach has created a demand for debt consolidation for licensed moneylenders from new businesses and people with poor credit scores.
If you are one of those that can qualify for a consolidated loan from both a traditional bank and a licensed moneylender, read on to find the better option for your unique circumstances. There are four criteria that you should consider.
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Speed of approval
The odds are that if you are looking to resolve and restructure your debt, you would like to accomplish that goal as soon as possible. If time is of the essence, the markedly better choice is a licensed money lender.
Upon receiving an application for a debt consolidation loan, Singapore banks begin an assessment process that takes at least a week and often up to two weeks. By contrast, licensed money lenders may give provisional approval within as little as 10 minutes.
Note, final approval of debt consolidation for licensed moneylenders can only be done in person. This is because it is a legal requirement that every loan is finalised only after your identity and relevant documents have been verified.
Ease of approval
Every licensed money lender that provides a consolidated loan in Singapore is aware that the majority of its clientele does not have an excellent credit score. In catering to this niche within the population, they have less stringent approval requirements.
Most major lenders would turn down an applicant with an average credit rating or an inconsistent employment record. Such people can still obtain debt consolidation for licensed moneylenders. While these lenders are still obliged to perform a formal assessment by law, they approve people with far lower credit ratings.
If you believe your credit score and/or employment record will be a barrier in getting a debt consolidation loan in Singapore, make the effort to apply at a licensed money lender before you give up.
Ease of application
Part of the reason that banks take so much time to process a loan request is their insistence on an in-person application. Not only do you have to book an appointment at a time when their executives are free but you also have to travel all the way to the specific branch for the interview.
On the other hand, online applications for debt consolidation for licensed moneylenders are an exercise in personal convenience. You can apply whenever you choose, day or night. This is especially helpful for shift workers who would prefer not to take a day off work when they are already in need of additional income.
If you value convenience, a bank loan application is the distinctly inferior option compared to a licensed money lender’s debt consolidation loan in Singapore.
Dignity of process
An oft-overlooked facet of online applications is the dignity factor. Particularly if you have a less-than-stellar record, it can be acutely embarrassing to have your entire financial history assessed by a stranger at a bank. Having your hopes of approval raised and then ultimately hearing a ‘No’ can be especially hurtful.
An online application for a debt consolidated loan in Singapore eliminates the possibility of that discomfiture. Your application is assessed remotely before a face-to-face meeting is necessary. Consequently, even if the application is rejected, you will not have to suffer the unpleasantness of having a stranger turn you down.
All you will have to contend with is an SMS message or email informing you of the decision. It is infinitely easier to deal with the outcome in this scenario.
Making the decision
A consolidated loan in Singapore is the ideal way to rein in runaway spending and take charge of your finances. If you have been rejected by a bank or other lending institution, apply at a licensed money lender today.