Flexi loans in Singapore were created to help people deal with their financial mishaps. Aside from that, loans are meant to stimulate a nation’s economy and they are also some of the contributors of progress. Those are the positive things about loans. However, there’s also a negative side that has troubled many financial experts for years: predatory lending. This is a crooked strategy where lenders victimize people into getting attractive loans. Afterwards, those people will be charged with outrageous monthly rates, along with some hidden fees. The lenders make profit in this method, while the borrowers continue to sink in debt.
Do you want to know the tell-tale signs of predatory lending and avoid it like a plague? Take note of these simple but important tips.
Get a List of Reputable Lenders
Within your area, there’s a big chance that you’ll find a bank or financial institution that offers various kinds of loans. Don’t rush into the first bank that you see—it’s better to create a list of options so you’ll know which ones offer the best loan programs. In most cases, it’s better to trust a bank than a small-time lender. The loan application process may be long, but you’re definitely on the safe side.
Watch Out for Low Monthly Rates
Finding a lender that offers low interest can be a blessing. On the other hand, it’s also one of the possible signs that the lender is up to no good. Before applying for a loan, it’s good to have foreknowledge on the ‘acceptable’ interest rates in the lending industry. A very low monthly premium means that you’ll compensate for something else – like unbelievable hidden fees. Also, remember to read the document of the transaction so you can avoid getting ripped off.
Seek the Advice of Qualified Loan Experts
Since loans are the most common aspects of finance, there are lots of experts that are willing to help you. You can find an expert in a loan forum or association. While not all experts can be trusted, you can keep a small logbook that contains their pieces of advice. Be objective in following the ideas of the experts so you can still make your own decisions. Occasionally, these experts will share their recommendations of the best lenders out there. Take all recommendations with a grain of salt.
As long as people need loans, predatory lenders will always remain. The best way to arm oneself against such practice is diversified information. Stay ahead of the game by expanding your financial knowledge.