Maximum loan amount
There are some limitations to the money the borrower can applied for as a loan, depends on the salary or the monthly income of the borrower also on the type of loan he is applying for. For example if the borrower is applying for secured loan, he can get loan of any amount if he can afford it but if a person is applying for unsecured loan, he can get the loan of $3,000 for two months, if his annual income is less than $20,000. If his income is more than $30,000, but less than $120,000 he can apply for the loan for four months.
Interest rate in something which every moneylender or bank charge from the borrower. The percentage of interest rate can be different from one another but it is a must thing. Whoever apply for a loan of any kind, should know that he would have to pay the interest rate as well. It is the duty of the moneylender to calculate the exact amount of interest rate, which a person will paying and tell the borrower. In case, the borrower is returning the money in installments, lender will have to tell the amount of interest rate, he will be charging on each installment. In 2012, lenders in Singapore were charging 13 percent interest rate on secured loan and 20 percent on insecure loan, which is being taken for two months. Some moneylender decreases their interest rates if borrower bargains with them. Whatever rate has been decided between the lender and the borrower, it is important to put them in contract paper. In 2014, the government changed the percentage of interest rate and it became 4 percent per month. The lender can only charge the late interest on the installment that has been delayed not on all amount of loan https://easycredit.com.sg.
There are six types of fees lender can charge the borrower on different occasions. Such as If, the borrower fails to pay the installment on time, if the borrower is asking for the diverse in the contract terms. The lender can charge find if a check is bounced, also if the borrower wants to end the loan early than contract time. The borrower will also be charged with the legal cost of the loan.