While offering cheap loans for all, some moneylenders may seek to intentionally eat into your savings by hiding additional charges in the application forms. Others may tack on fees that would take an even longer time for you to realise fully.
In an attempt to ensure that you know them and avoid them, the first step is to understand these charges before deciding on whether or not you should take up the loan.
1. Setting-up fees
Most costs in this category cover the expenses of setting the loan before getting approved. The first fee is the application charge, commonly known as start-up or establishment fee. While some banks do not charge any establishment fees, many lenders can charge up to as much as $150, but they typically have a provision of wavering the charge.
The second charge in this category is the property valuation cost, which is used to assess the value of your property. Lenders usually seek assistance from third-party collaborators so that they can give you an amount that is worth the value of your home.
The document preparation fee and legal costs are other charges that also fall into this category. Depending on the provider, the charge used to make the document could be waived, and the legal fees used to pay an attorney or lawyer while sealing the agreement could be accommodated by the provider.
2. Recurring costs
Charges in this category are those billed during the lifetime of the loan. The monthly servicing fee caters to loan servicing and administration. They could be charged once or at intervals throughout the loan period. You will need to do an extensive research for licensed money lender singapore if when taking up loans such as instant loans.