borrowing money

Elements of a Loan Agreement

A Singapore personal loan that is coursed through a financial institution such as a licensed moneylender in Singapore require a loan agreement to be signed. This is not often what happens when a loan is between two individuals. A loan agreement is essential as it sets the expectation of both the lender and the borrower during the term of the payday loan. The lender and borrower will be working together during the duration of the loan that is why it is critical to ensure a good working relationship is in place. This good relationship is maintained and governed by the terms of a loan agreement. The elements of a loan agreement are as follows:

  1. The Payment (also referred to as “repayment”) Schedule

This is a schedule that shows the payment plan to be made by the borrower. The schedule also reflects the interest rate and other fees that are incorporated in the amortizations to be paid by the borrower.

  1. The Terms and Conditions of the Agreement

For every agreement, there exists the terms and conditions in which the lender and buyer agrees upon. These terms and conditions govern the rules of the loan agreement. Actions to be taken by both the lender and borrower must adhere to these terms to ensure that the relationship between both party can be maintained.

  1. The requirements that is needed from the borrower

As a borrower, there are certain documentation and certain actions that are required by the lender for the use of the money. The loan agreement contains these documentation and action to ensure that the obligation of the borrower is fulfilled for using the lenders money. These documentation and actions may be required to help the lender ensure collectability over the loan. There may also be actions that a lender may require a borrower to refrain from.

  1. Collateral that has been pledged and other guarantee.

There are cases where the type of loan is secured loan which requires the borrower to provide a collateral. It may be property or future income. And for the cases of business loan, it may be a lien over a portion of a business’ equity. Collateral is a form of security that is provided by the borrower to guarantee the lender collectability over the loan amount. Other guarantees may include payment to be made by a guarantor in case of default.


Credit Card Fraud and Ways to Prevent It

With advancement on technology and complexity of the digital age, people with bad intentions use these as an advantage to defraud others. It is very easy nowadays for someone to apply for a credit card but are unfamiliar of the impact it can have in our lives financially. Here are a few things we need to be aware of to avoid being taken advantage of from our money.

Credit card fraud or theft can happen to anyone by getting the personal information and start using the card holders account to purchase things online. It only needs a tech savvy person to steal your information and start taking advantage of your credit. It can also happen by a dishonest employee whom you entrusted your personal information together with your credit card information uses them for their personal benefit. Lastly, it may be in a form where you are made to believe that you are taking advantage of an offering by entering your personal information and the next thing you see are charges you have not made being reflected in your statements.

In avoiding these fraudulent acts, you must need the following:

  • Avoid sharing your account information online especially if the website you are in has not proven their credibility to you. Personal information must be made in person unless the website is a well established institution.
  • Bring your credit card only when you are going to use it. Avoid having your credit card with you if you are not going to use it. Leave your card at home in your locked drawer. This prevents you from losing your card for others to use.
  • Always have your card within your sight. Never let another person take your card away from your eyesight to ensure that your information is not captured which may be used for fraudulent acts.
  • Save your receipts and compare them with your statements. Any charges that are unfamiliar to you, call the card issuer to make sure that they can explain the charges and why it is reflected in your statement. If the charges are proven to from someone else, dispute the charges right away and make sure to get an update from the credit card issuer.