Choosing a personal loan lender is never an easy undertaking as it might sound at first. Either way, this is not to say you should steer clear from following this route since choosing one is a big deal. After all, your lender may be in your life for months or years to come as you repay your loan.
Furthermore, they’re tasked with the responsibility of processing your payments and handling customer service issues. For this reason, you ought to be sure that you’re counting on the right lender if things are to turn out how you expect. In this article, we’ve complied some of the signs depicting that you may have chosen the wrong personal loan lender.
Not Explaining the Terms of Your Loan
When working with a personal loan lender, you ought to be fully aware of the repayment terms and rates. This action is aimed at making sure you assess the total cost of your loan. A reputable lender should make this clear in the application process so that you may compare it with other loan products out there.
One of the most essential terms to keep a close eye on is whether the interest rate on your loan is a variable rate loan or fixed rate loan. With a variable rate loan, the interest rate may rise during the repayment period. Be sure to factor in the pros and cons of both these two before deciding on anything.
Your Lender is taking Longer to Process Your Loan Application
One of the main reasons why you decided to turn to a personal money lender is to sort your pressing financial need. For this reason, you don’t want to wait for a couple of weeks or months for your lender to have a look at your paperwork and approve the application. If your lender is taking forever to process your loan application, then you ought to take is a big red flag and look elsewhere.
The Bottom Line
When looking for a licensed money lender Singapore, it is highly recommended that you watch out for these and other red flags before signing on the dotted line. You don’t want to end up working with a lender who is only taking advantage of you. Such personal money lenders may subject you to high interest rates or even long waiting periods before accessing the finances.