There are many financial hubs across the globe. One of which is Singapore. For instance, in the mentioned country, it is not hard to obtain a loan because of the expenses expected. This is true because the money is somehow a requirement for a ton of purposes. It can be for emergency, education, among others.
When borrowing money, there are lending regulations, and procedures that you have to be aware of. There are times when modifications in the law transpire depending on where you are. This is how borrowers are often managed. The role of governments is to ensure that they protect both the borrowers, and lenders under their state.
If it is your first time to borrow money, or not, there are rules that you need to know.
Rules in Lending Money
There are basic rules before you borrow money from any traditional institutions out there. Please take note of the following:
- The first thing that you have to note is the relevance of following the law legally to fulfill any sort of loan agreement. You only have to do this with licensed lenders in your country. In the pursuit, you have to be aware of the printed terms, and conditions. You also have to ask the offer to explain the document, or the so called loan agreement. Everything must be disclosed to you.
- If you come with an existing loan, and a debt, such as a recurrent fee, you have to be open about them. Please be smart in managing your contract agreement. It is also vital that you calculate your interest payment, together with the late fees.
- Money lenders have to educate you with every term, and condition stipulated in your document. This is a legal responsibility that has to be made. You must be oriented in a language that makes sense to you. If you still have questions after everything that is a bad indication. It is also your right to be provided with a loan agreement copy.
The aforementioned are the basic rules that you can expect in the process. There are still some more that you may encounter. Basically, it varies from one country to another. You just have to know more about it before you go on with an agreement.
When it comes to the amount that you can take, there are exemptions that are allowed based on the unsecured law too. There is a basis normally being made to this. For example, you may be allowed to borrow at least 3000 dollars if you have an annual income of 20000 dollars. However, if it is less than the latter, you will be given the chance to avail the two months of income loan.
Based on the law, most of the licensed lenders out there are required to compute the EIR. It must be revealed too. You are not just granted the law without this. This is also a way so that you are guided with the interest rate given to you.