Bukit Batok is one of most densely populated areas of Singapore in the west region and is also famous for the Bukit Batok Nature Park. Often businesses as well as individuals in the area facing financial problems would like to take a loan. Since the borrowers may require the money quickly and are not well established businesses, they may find that banks will not be able to provide the loan. Hence they would like to approach a money lender in Bukit Batok to get the loan they require. Since the money lender will usually charge a higher interest rate, some tips which will help the borrower reduce the interest charges to the extent possible are discussed below.
One of the most important calculations which every borrower should do before applying for a loan, is the approximate amount which he will require. While it may be possible to get a loan sanctioned for a larger amount, the borrower will be wasting his money paying interest on the amount which is not required. On the other hand, if the loan amount is less than what is required, the borrower may have to apply for a loan again, which is a tedious and time consuming process. So before applying for the loan, the borrower should calculate the expenses or investment for which he requires the loan as accurately as possible.
The other information which the borrower should specify while applying for a loan is the repayment period. Typically the loan principal and interest are paid in equal monthly installments, and the monthly installment amount is calculated using a complex formula. If the repayment period is longer, though the monthly amount will be less, the interest paid will be more. While it is always better to repay the loan at the earliest, many individuals as well as businesses may not be able to pay larger amounts monthly since their income is less. So the repayment period should be selected based on the monthly installment, after considering the income and expenses.
In some cases, the money lender may offer loans with collateral, for example many money loans offer gold loans, or accept collectibles like luxury watches as collateral. In these cases, the interest rate for the loans is less than the rate for unsecured personal loans since the risk of the money lender is less. Hence while applying for the loan, the borrower should also consider whether he can offer some collateral, which will greatly improve his chances of getting loan approval, and reduce the interest which he has to pay
Comparing loan offers
Individuals, families and businesses located in Bukit Batok can conveniently get loan offers from multiple money lenders in the area, by specifying the loan amount, repayment period and their income online, using the various loan comparison websites. However, before selecting a particular lender, it is important to check their terms and conditions carefully. Though most borrowers will prefer a lender charging the lowest interest rate, they should also consider other factors like penalties for delayed repayment.