A moneylender is a person or an organization that lends money to others.
And in return borrower need to pay for it in addition to its interest. They usually provide short-termloansand loans are usually given on personal security basis.
A few things you should keep in mind before going to a money lender ang mo kio.
- Consider your need to arrive at the right loan amount: calculate the number of funds you require and then evaluate how much money you need to borrow.
- Compare the interest rate in the market: We should compare the interest rate provided by different financial institutions and lenders hence it allows us to get the loan at the lowest interest rate.
- Assess all the costs: before applying for a loan consider all the costs that your lender will charge you such as prepayment fees, processing fees.
- Evaluate the ability to repay the loan: before borrowing money, you should first calculate the amount that you need to repay and if you think that you can afford that then only you should apply for a loan hence to avoid any financial issue later. Then allocate your income in such a way that you are able to pay your instalment timely.
- Avoid falling for gimmicky offers and plans: Find a lender who is transparent be attentive while reading all the policies there are some lenders who charge interest on the basis of floating cost which initially looks that they charge a low-interest rate but, as time passes it can increase substantially.
- Maintain a good credit history: A good credit score is the representation of your creditworthiness based on your past credit repayment. A lower credit score sounds like bad debt management and it creates doubt on your creditworthiness and may result in the rejection of your loan application or the lender may charge a high-interest rate from you.
Always keep in mind all these factors like your credit score, interestrate, and other fees before going to a moneylender itensures that you decide that evaluate what works best for you and it also prevents you from making mistakes such as selecting the wrong lender or borrowing more money than your requirement. Borrowing is not bad the fact is that when debt is used in the correct manner can help us in any wayit helps us in expanding our business, improving the quality of our life.
However, if we misuse it we can trap into a debt cycle which has a very bad impact on our financial health.That’s why always be sure about your long-term and short-term planbefore applying for loans and if you are clear about all these there is no harm in borrowing.