Growing old comes with challenges. Adult Singaporeans may perhaps get it a hurdle securing individual loan but let’s see how this can be resolved.
It’s the moment we recognize the hidden truth. While you grow old, the opportunities of getting your loan verified also reduce. I know many could be asking themselves why this would be so. It is crystal clear that as you grow old the income also decreases at some age bracket for most people who solely depended on either income from employment or investment. The banks and other money lending agencies become unenthusiastic to give credit to such old individuals whose future credit worthiness can’t be ascertained. While all these are discouraging the old should not give up since there are still more methods of killing the rat.
- Present Collateral For Your Loan
The simplest way to acquire a loan is to supply the lenders with a loan security. Offer something as a warrantee for your loan. So you have to acknowledge the fact that this collateral provided belongs to the bank in case you fail to pay back the loan. This can be more advantageous to those old individuals who have greatly invested in real property investment.
A loan security must not necessarily be property. It can be anything the lender accepts as being of greater value than the loan applied. The trick behind this entire phenomenon is to protect the loan, so anything required to secure this can be your house, gold, and even a portfolio of stock. So you understand the trick behind keeping a portfolio of stock. These can be used later to secure loan especially that time when you don’t have a constant source of income following your retirement or reduction in investment.
Another person may decide to go cash- out refinancing way. This is a reverse credit, especially for those who own completely paid-up homes. This is a form of a second-mortgage. In regards to Monetary Authority of Singapore (MAS), banks and any other lender is legitimized to loan up to 50% of the value your personal property that is your collateral even if you have not met other financial requirements like the income rations i.e The Debt Servicing Ratio (TDSR).
The most important aspect of using the loan security is that the banks charge low interest rate following the fact that the loan is safe. For instance in consideration to the second-mortgage the interest rate stands at 1.6 per cent per year which is even less compared to the rates by your CPF accrues (2.5 %)
- Consider Qualified Guarantor For Your Loan
A guarantor is an individual who is of the same mind to pay your loan in case you decline to pay it. For legitimacy purposes this should be someone with 21 years and above and must be a Singapore resident with income amount considered satisfactory by the bank or any other financial agency lender. Take note that the larger the loan the bigger the amount required with the guarantor.
It has been made a custom over the years that guarantors are basically close friends or relatives which is imperatively true, however you can make personal arrangements in order to get a guarantor. For instance, some individual have sketched their contracts accepting to provide their stock portfolio, their skill compilation to a guarantor in the case of loan repayment failure. Note that this may not be allowed by the lender as security.
- Decrease The Loan Term
At times it speaks a lot when you decrease your loan limit. This will enable fast loan processing and approval. For instance, in the case of house loans, you can limit yourself only to borrow 60 % of the total chattel value that is if your age and loan tenure surpasses 65. But take a case where your reduced loan tenure and your age is less than 65, the you will have to have a loan of up to 80% of property value. Take note of the fact that when you reduce the loan tenure then this will probably lead to a higher monthly loan repayment
- Join Hands With A younger Co-Borrower
The other solution pertaining this, is to source for another younger working age grown person to be your co-borrower for the loan. Banks and Credit Excel Capital Pte. Ltd. will ensure the averaging of the age that is flanked by co-borrowers, so this may make you be counted as being actually younger as you really think.
- As A Final Resort, Consider Non-Banking Financial Organizations
There are several financial organizations that are not banks. These include but not limited to credit organizations otherwise known as co-operatives. These institutions are very bendy and may be utilized by many individuals who seek for loan. They provide loans at the point where banks are not able to do so due to either inflation or any other economic disorder. As long as you have a good credit score, then you have no worry to approach
Serious care should be considered when approaching these legitimate credit institutions. Note that there are some other fraudulent financial organizations whose main business is to send scams to the unknowing borrowers just in the interest of coning them. All these financial institutions are licensed to offer money lending services to the prospective customers. All credentials should be checked to ensure that you get into dealing with a
legitimate and reputable lending firm.
In Singapore there are several licensed money lenders. The Registry of Moneylenders (ROM) always release lists of licensed moneylenders every year. This helps to prevent many citizens who would otherwise be cheated and robed. By the year 2016 the number of moneylenders had risen to close to 169.
It has been the responsibility of Moneylender’s Directory of Singapore over the years to ensure that the customer’s assessment of licensed money organizers is adhered to. The state regulatory authority on money lending ensures serious evaluation of individual loan offering. They ensure that all the listed money lending institutions and state departments in the moneylenders act act in accordance with the regulations fully set and organized by the ministry of Moneylenders. In order to get the very best services, the state ministries of money lending put together all the reviews and compliments of all money lenders in one place i.e website that enables the prospective customers to access and make the very best option on which money lending institution to approach. This has greatly helped many citizens who have been striving to identify the best money lenders for them.
Therefore the old have a variety of opportunities to choose from. In a case where one fails they can get the other.