How To Maintain Your Personal Loan Account With A Singapore Moneylender?
If you’ve recently taken a personal loan from a Singapore moneylender, use these suggestions to maintain your loan account.
You needed urgent funds and turned to a licensed money lender in Singapore for a fast cash loan. You meet all the eligible criteria including steady job and age factor, and provide relevant documents.
After a round of negotiations, you get a loan at reasonable interest rates and flexible repayment schedule. The processing fee is moderate too.
Now you can relax and utilise the cash loan as needed.
Are you missing something?
Does your role end with repayment on expected dates?
To ensure smooth working relationship with your authorised moneylender, you should adopt some safe practises. Understand the best ways to maintain your money loan account to avoid problems in the future.
Check Loan Disbursal Amount
After your legal loan has been approved by the credit company, it’s your job to ensure that principal amount is clearly mentioned in the contract and you receive the same amount. The lender is only allowed to deduct processing fee up to 10% of principal from the amount loaned to you.
Tip: If you receive cash, count the bills to ensure this equals principal or basic loan value minus processing fees.
Ask For Dated Receipts
You’ve started paying the monthly repayment (interest and principal) sum. Your moneylender should issue a dated and signed receipt for each such transaction. If the lender fails to provide one, ask for a receipt for each instalment or cash fees.
Tip: Make sure your name, date and amount repaid is entered correctly in the receipt.
Follow Repayment Schedule
Memorise the repayment schedule of your unsecured loan agreement. If you miss a single deadline, you could end up paying late payment fees. Delayed payments can result in an additional late fee interest. If you’ve missed a deadline, pay the instalment as soon as possible.
Tip: Place sticky notes with instalment due dates in a place you’re more likely to check. You can also set up mobile or email alerts for due dates to make sure you pay on time.
Receiving Statement Of Loan Account
If you’ve taken a personal loan for a longer period of time, make sure your finance company prepares and sends an accurate statement of account. You should ideally receive a statement every six months.
When you receive the statement, go through the contents to verify that all the details are correctly mentioned. This includes your name, date, principal amount, paid instalments with dates, late payment fees and interest charges, and outstanding balance.
Tip: It’s better to confirm this with lender during the contract stage. Ask them whether they are willing to send a statement of accounts at regular intervals.
Preserve Loan Documentation
Keep all the documents, including payment receipts, related to your loans in a separate folder. If there is any issue regarding repayments or fees between you and the private money lender, these files act as proofs for your loan transactions.
Tip: Keep the documents even after you’ve repaid the loan in full, as you never know when you’ll need them. These documents can also act as reference points for future loans.
Have you followed any of these suggestions for your personal loan account with a Singapore moneylender?