Applying for a loan is not an easy task. You have to provide all the information about your income, assets, and liabilities that you can think of. This includes bank statements, pay slips from the last three months, and any other evidence that proves you are financially stable enough to repay the loan. To make things easier for borrowers, moneylenders in Singapore will ask a number of questions during their application process, which we will discuss below.
When would you like to get your loan? What is the purpose of your loan? Do you have any collateral for this loan? These are just some of the questions that any money lender Singapore will ask borrowers when they apply for a loan. If these sound familiar, then it’s time to find out what other things money lenders want to know and how you can apply for a loan.
What is the purpose of your loan?
One of the most important questions moneylenders ask borrowers is the purpose of their loan. The moneylender will want to know what you plan on doing with this loan money, such as whether it’s for business or personal purposes. This helps them assess your ability and willingness to repay the loan.
Do you have any collateral?
If so, how much are we talking about here? Collateral refers to assets that can be used by a borrower in order to settle their obligations if they fail to pay them off during repayment periods (usually during bankruptcy). Moneylenders may also require something like property deeds, titles, stocks or bonds as security against possible defaulting.
How much money do you need?
Another important question moneylenders ask borrowers is how much money they need. The moneylender will want to know the amount of money you require and when you would like to receive it, for example, one week or three months from now.
How long do you plan on taking the loan?
This is usually between one month and five years, although some moneylenders may have different terms depending on the requirements of your repayment period. This question can help assess whether borrowers are likely to be in a position where they won’t be able to repay loans during this time frame, as well as if there’s enough money in their savings at the end of it all. The moneylender would then make an assessment based on these factors before approving or declining the application.
What are your repayment plans?
Your repayment plan is how you will repay your moneylender loan. Depending on the money lender, they may agree to a monthly repayment or an instalment-based method. The moneylender would make this decision based on what’s most convenient for them and borrowers, as well as assessing whether it fits with their risk appetite before approving or declining the application.
Why should we approve your application?
Moneylenders ask money borrowers this question to assess the borrower’s motivation and willingness. If they feel that you have a genuine desire to repay your loan, then there might be an increased chance of them approving your application.
What is the nature of your business?
If moneylenders are to approve your application, they will want to know what type of business you work in. This helps money lenders assess the borrower’s long-term stability and whether a loan would be at risk if there were any changes within the company, for example. But of course, moneylenders will ask this question if you mentioned that your loan is for your business. There may be more business-related follow-up questions that they may ask, so it’s best that you answer truthfully.
How much money do you make a month?
One question borrowers are asked is how much money they earn per month. This helps money lenders assess whether a loan will be at risk if the borrower stops working or cannot work for any other reason, such as injury or sickness.
How long have you been employed?
The moneylender will also ask money borrowers how long they have been employed. This helps money lenders assess whether a loan would be at risk if the borrower were to lose their job or stop working for any other reason, such as injury or sickness.
Do you have any other assets that can be liquidated?
If moneylenders are to approve your application, money lenders will also want money borrowers to have other assets that can be liquidated. This helps money lenders assess whether a loan would be at risk if the borrower were unable to repay their obligations for any reason, and we’d need another way of paying them back.
Have you ever filed for bankruptcy before?
The moneylender will also ask money borrowers if they have ever filed for bankruptcy before. This helps money lenders assess whether a loan would be at risk as it’s likely that money borrower has more debt and fewer savings than someone who hasn’t had this experience, which can make them more vulnerable to defaulting on their obligations.
Do you have any other loans with us already or with another lender?
Moneylenders will ask money borrowers this question to assess whether moneylenders will be lending money that the borrower already owes. This helps money lenders assess how at risk a loan is if there’s another one in place and they’re considering approving your application.