In Singapore, having a good credit rating is very important, especially if you want to make your lifestyle more comfortable and easy. If you have just joined the rat race that is called life, then there is a need for you to understand the importance of knowing the ins and outs of applying for any type of loans in Singapore.
For most Singaporeans, loans are very important and at times a type of necessity. Loans enable people to accomplish things that may in one way or another require large sums of cash. This includes property purchases, educational payments, home renovation, car purchases and other things that heavily influence an individual’s day to day activities. However, applying and getting a loan is no easy task, so if you have just joined the rat race of life and a newbie in the world of borrowing money, here are some lending tips for beginners like yourself.
First of all you need to understand that creditors, banking institutions and other types of Loan Company requires you to comply with specific conditions before they would even think of looking at your loan application and these conditions are first, that you should have enough assets which can be used as collaterals in the event that you cannot make good on your loan. More often than not, banks and other conventional financial institutions are the ones that are quite strict relative to this condition.
Second, they need to be reassured that you have a steady flow of income, either from your employment or businesses that you have put up. More importantly, the ratio between your income and expenses should at least be a 60 to 40 ratio. This should assure the lending company that you will have enough surpluses to pay off the loan or at least have enough to pay for the monthly amortization if the loan is to be paid on installment basis.
Finally, if you are a businessman, you should be able to prove that your trade is making money and your track record of profit making is unquestionable. In case you find it difficult to get business loans or any other kind of loans due to being a newcomer in the business realm you can resolve the problem by asking a friend or relative to stand as a co-maker for the loan. You must understand that as a first timer in the applying for a loan, you must expect that you will have a hard time getting one.