Maid loans in Singapore are a temporary solution for expenses that require extra cash. But even before you start the application process, it is crucial to be aware of the dos and don’ts.
Therefore, in the post, we’ll discuss what you should know about the best practices when applying for these loans.
8 Best Practices When Applying For Maid Loans in Singapore
1. Understand Your Financial Needs
Determine how much you need to borrow by first understanding your financial needs. Maid loans typically cover expenses such as the domestic helper’s daily expenses, medical bills, education, and other related expenses that require extra cash.
Therefore, firstly estimate your requirements and any other unexpected costs. While estimating too little will be insufficient, estimating too much will be overborrowing. Having a rough estimate of your cash requirements means you can choose the right loan size and not borrow more than you need.
2. Choose a Good Money Lender
Not all moneylenders are good. As a domestic helper, only deal with a good and licensed lender. Choose a licensed money lender with clear lending terms, good customer reviews, and an excellent reputation.
A great lender will clearly outline the interest rate, repayment terms, and fees beforehand. On the other hand, unlicensed moneylenders usually charge exaggerated or hidden fees, which can be a problem later. So, avoid them.
3. Check Your Eligibility for OFW Maid Loans in Singapore
Check beforehand whether you are eligible. Most lenders require that you be a Filipino working overseas, over 21 years of age, and gainfully employed.
Your credit history will also be taken into account. If something is unclear about their requirements, you can call the lender and ask if you are qualified. It’s better to be safe than to be disappointed later and waste time.
4. Plan with Documents Ready
Having all your documents ready in advance will make it easier to complete the application process.
Crucial documents you need include identification documents, income proof, and residence proof. If you are self-employed, you will need bank statements. Having them ready earlier will allow you to apply faster and with less hassle.
5. Compare Loan Quotes
Never be content with the very first loan quote that you have obtained. Compare different quotes from different lenders.
Comparisons can be about the interest rates, payment terms, and the flexibility. Some lenders can give you less but a fair rate, while others may provide good terms. Select the best that can fit your financial status and repaying capacity.
6. Read the Contract
Carefully read the loan contract before signing. Read about the interest fee, processing fee, late fee, and the rest.
Reading the contract before you sign will save you time later and ensure that you understand the contract you are entering into. Importantly, if you’re unsure, ask the lender to explain
7. Plan Your Repayments
Once you receive the loan, plan for repayment by setting aside a portion of your salary each month to repay the installments. Paying on time allows you to repay the loan earlier and enhances your credit record.
Importantly, whenever possible, aim to repay and clear the loan early with the minimum payment so that you do not have to pay huge interest in the long run.
8. Seek Help if Needed
Genuine lenders are usually ready to assist borrowers by rescheduling payments or providing temporary forbearance. Therefore, communicate if you face any difficulty in repayment. Running away from the lender is unnecessary since the lenders are so helpful through out the journey.
Final Thoughts
Applying for maid loans inn Singapore doesn’t have to be difficult. With the above best practices, it can be easy and hassle-free.
Therefore, if you’re ready to take the next step contact a trusted moneylender today and explore your options. Importantly, we will be ready to walk you through the process to ensure you get the best deal based on your needs and qualifications.