Introduction
A domestic helper loan is a loan that can help you cover the cost of hiring a domestic helper for your home.
It’s a great way to get the cash you need to hire someone, but what’s the best place to apply? You have two options: banks and moneylenders.
Both are regulated by the government and provide safe borrowing options, so which one is right for you? Let’s take a look at each option.
A bank or moneylender.
You can apply in either a bank or a moneylender. Both are regulated and thus safe to borrow from.
Banks and moneylenders, who are both regulated by the Monetary Authority of Singapore (MAS), require you to fill out an application form and submit it along with proof of employment, copies of your identity documents such as NRIC/passport/work permit, as well as other supporting documents such as income statement or payslip.
If approved for the loan amount, funds will usually be credited into your bank account within one working day. But currently you are not allow to borrow money from licensed moneylender in Singapore
Applying in Banks.
Banks are a good place to start if you need a domestic helper loan. The government regulates banks and is therefore considered safe to borrow from.
They also offer lower interest rates than moneylenders. Furthermore, banks may be willing to give you a loan without requiring a guarantor or collateral! Some banks may even be willing to lend money without requiring a credit check.
While it’s true that there is no guarantee that your bank will offer you the help that you need when applying for loans, this doesn’t mean that they won’t try their best to give it to you.
You should also make sure that you will be accepted for the loan. However – your bank may turn you down, and you have no backup option.
If you are rejected by one bank, don’t give up hope just yet! There are other places where you can apply for a loan with bad credit history.
Moneylenders are more likely to give loans to people who banks have turned down; it is riskier for them to lend money because they often require collateral and guarantors.
The higher interest rates charged by moneylenders reflect this risk factor.
Alternative moneylenders.
If you are rejected for a loan from your bank, it may be worth asking for recommendations from moneylenders in your area.
Moneylenders can provide loans to those banks that have turned down, often offering lower interest rates than banks.
Their loans tend to be small and short-term, so if you need more money for an unexpected expense or to help with a large purchase, ask the moneylender if they can accommodate your request.
While there are no restrictions on the maximum loan amount you can borrow from a moneylender, it is always worth shopping around to find the best deal.
Interest rates and terms vary between lenders, so shop around before applying for your loan.
Some moneylenders may even offer an additional allowance for unexpected expenses incurred by domestic workers during their employment with their clients.
Conclusion
Banks and moneylenders are both regulated. They have to follow the same laws and regulations, which means they’re not likely to rip you off or give you a bad deal.
This is good news if you’re looking for a loan because banks generally offer lower interest rates than moneylenders.
Borrowing money for your domestic helper is a great way to make life easier and more comfortable. But remember to shop for the best deal before signing contracts with lenders or banks.