I'm sort of in a financial emergency right now and intend to take up a personal unsecured loan.
I don't qualify for bank loans, GE or Ezycash as my income falls below their requirements.
Have seeked help from my friends (I don't have many) but they were not able to help me.
I'm the breadwinner of the family so asking them is out of the question. I'm now seriously considering approaching some registered moneylenders based on MinLaw's list to ask for a personal unsecured loan. Can anyone share their experiences if you've ever borrowed from them? What's the interest rate like? Is there a minimum amount? All I know is that according to the Moneylenders Act, the maximum interest rate for unsecured loan is capped at 18%. That's pretty high. Anyone knows of other alternatives for getting a loan legally?
i think there are plans where they will grant you a loan if you sign up with a line with a phone company or courts.
it works like this : you go to the company, tell them how much u want (got limit one but im not sure how much) and then you go courts and buy stuff on credit and you give them in return for the loan. Interest rate is extremely high, 22% to 24% if im not mistaken. But in my experience, unsecured loans are usually this high (16% to 24% range).
some of these companies can be found in the advertisements section of TNP daily. However, whether or not they are legal is a grey area.
i hate to be the one highlighting this option to you but i just feel you should know that these options exist.
Alternatively if you have a property under your name you could apply for an overdraft facility with a bank, interest rate is lower at about 8% thereabouts. It's like taking a loan and you pledge your property.
Good luck with finding money.
oh btw, please don't go to loansharks. their interest rates are exorbitantly high.
dun take those loans....do anything else better....sell anythings...sell yr flat...sell backside... but dun take loans...u would nvr be able to get out of it!
Go to a pawnshop and pledge your assets. That should be the best option.
@maxtor I'm aware of such options but after much thought, not sure if they'll work for me. The high interest for hire purchase is a big worry. As for signing up for a new mobile line, can surrendering the new phone get me $2000? Cause that's how much I need.
My parents own our flat. I can't and don't intend to use it as a collateral for such a small loan. What little savings I had had been used to upgrade myself earlier this year which is why I need a loan.
@ Passive Income1 Going to the pawnshop is not an option as I don't have anything of value to pawn.
Thanks to everyone for your suggestions. I welcome more.
I totally agree with you Azufruits,
5 years back i did that before signing up new phone plan. I woudnt say it is not a good plan if you are really desperate. But that plan will be a long term burden for you. If u think you need that cash urgently for this moment and will be able to earn enough cash for the next few month to terminate that line. Please go ahead doing it.
Vice versa, If you think you can't i wouldn't suggest you to do so. It will just add more committment to your daily life , only will give you more trouble in the near future. (eg. not enough cash to pay off subscription , court case ..etc.)
no offence. but still when a person is desperate , you gotta walk thru the worse path even you wouldn't want it that way
My personal suggestion is to take up part time and endure your way thru, or discuss with your partner. lastly i think there's another way to use CPF to take cash from some "legal" way . i got no much idea about that
You can try ask friends apply for you if your income cannot meet. Hope this is helpful.