Being a freelancer, you must know the advantages of your work. You are free to choose what type of work you are going to do. You are free to choose your clients, location and your time. In short, you are your own boss. However, as you may know, freelancing also has disadvantages.
Due to the uncertainty in terms of income, freelancers may be at risk of having a financial emergency. Since they do not earn a salary like other employed workers, freelancers may need to borrow money. If they cannot borrow money from the people close to them, then banks and moneylenders are available.
If you are a freelancer who needs a personal loan, then keep in mind that you can apply for a personal loan. There are banks and moneylenders in Singapore who can offer you a personal loan. However, getting one can prove to be a difficult task.
THEY WILL TAKE A LOOK AT YOUR INCOME
Being a freelancer, you may have an income that varies from time to time. Thus, you have to show the moneylender that you can generate an income that can meet the expectations of the financial institution. However, you must have documents that can support your claim. Documents like your bank statements can support your claim that you have an income that is satisfactory and sustainable for a personal loan.
PREPARE THESE REQUIRED DOCUMENTS
- CPF STATEMENTS
Your bank or moneylender may look at your CPF statements. They may use your CPF statements to assess whether you contribute or not. It is important to note that the bank or moneylender may or may not require this from you. Nonetheless, it is important to prepare this document.
- INCOME TAX NOTICE OF ASSESSMENT
Instead of your CPF statements, the bank or the moneylender may require you to prepare your Income Tax Notice of Assessment. The purpose of this document is to prove that you have a stable and sustainable income, in spite of the variations. This document can also show how long you have been a freelancer. The bank or moneylender may ask you to prepare your Income Tax Notice of Assessment for the last two years.
- NATIONAL REGISTRATION IDENTITY CARD
For you to be able to get a loan, banks and moneylenders will require you to be a Singaporean citizen or a permanent resident. You have to make sure that you can present this identification card.
TAKE A LOOK AT YOUR CREDIT SCORE
One of the factors that determines your chances of obtaining a personal loan is your credit score or history. How long have you been using your credit card? Were you able to pay your bills on time? What is the credit limit of your credit card? Do you have a good credit history?
Even if you were able to pass all the required documents and identifications for your loan, having a bad credit score or history can negate your chances of obtaining a personal loan. If you have a bad history of paying a debt, then it is a must that you improve it. With that being said, here are some tips that you can use to improve your credit score:
- Monitor your debt and credit card balances
- Reduce your credit card debt
- Pay your bills on time by setting a reminder of their due date
- Update your payments by making sure that you are paying your bills on time
MONEYLENDERS IN SINGAPORE
If you feel like the requirements and the processes of a bank are stringent, then keep in mind that banks are not your only option. There are moneylenders in Singapore who can offer to grant your personal loan at a faster rate, and with fewer requirements. However, before you make a loan, there are factors that you have to consider in choosing your potential moneylender.
- Interest rate
- Fortunately, the Government of Singapore has regulated the interest rate of moneylenders. Keep in mind that the interest rate of moneylenders or bank may vary with each other.
- Licensed moneylenders
- If you want to make a loan with a moneylender, then you have to make sure that the moneylender is licensed. There is a list of certified moneylenders in Singapore on the website of the Ministry of Law.
- Good customer relation
- Most moneylenders in Singapore have a website. If you are unsure about the moneylender, then you can read customer reviews that are on their website. Also, there are independent websites that may refer you to the nearest certified moneylender.
- Required documents and application process
- The required documents and the application process may vary from one bank to another, or from one moneylender to another. Moneylenders have the advantage of requiring fewer documents and can grant your loan at a faster rate compared with banks.
BANKS ARE NOT YOUR ONLY OPTION
Most of the time, it is difficult to get a personal loan from a bank. Fortunately, there are moneylenders in Singapore who can grant your request. While it may seem convenient and easy to make a loan with any moneylender, you must choose a moneylender who is licensed and professional.
You have to choose a moneylender who can give you the best deal for your loan. If you are indeed looking for a moneylender, then choose Bugis Credit! They are a legitimate moneylender that can help with your financial need. They have good customer reviews that can attest to their professionalism and friendliness when dealing with customers. If you have any inquiries or you are interested in transacting with them, then visit their website by clicking the link above.