Not unlike other neighboring Asian countries, debts aren’t exactly seen as a good thing for Singaporeans. Instead of borrowing, people are reminded to save for the rainy days instead of spending and borrowing.
The reality, however, is very different. Due to a wide variety of economic reasons, taking out loans has become more common than before. In fact, a moneylender Singapore these days offers a wide variety of loan products: payday loans, personal loans, business loans, and even educational loans.
Here are the borrowing practices brought about by the economy:
Borrowing Money to Invest
Money has become more important than ever, which is why many want to build wealth. Among them are those who take out loans so they can invest. For them, applying for a short-term loan from a trusted money lender can be an easy way to finance an investment.
What they invest in depends on their knowledge and risk tolerance, and whether it’s financially wise to take out a loan to invest depends on one’s perspective. Nevertheless, it’s a fact that the investment will pay for the loan if it has returns, but the loan will be a financial burden if the investment doesn’t work out.
Borrowing Money for Financial Education
Similar to investing in stocks, people will want to invest in their children or themselves by taking out educational loans. After all, a good college education is the key to a financially stable and even successful future, as it opens up well-paying jobs.
And for professionals, further education can open up higher career opportunities or allow them to have horizontal growth. They can also take out loans to enroll in smaller programs that will teach them bankable skills and be certified in them.
Borrowing Money as Part of Financial Strategy
Because borrowers have become more financially educated than ever, they’ve become accustomed to taking out loans to afford certain comforts without getting trapped in debt. They’ve also used loans to afford big-ticket purchases that have improved their quality of life, like property or a private vehicle. And like previously mentioned, many of them have even used loans to build wealth.
Last but not least, they have also learned to control their impulses and not take out loans just for shopping and other frivolous reasons. By developing self-discipline, they’ve managed to use loans as efficient financial tools.
Opting for Online Moneylenders
Many parts of the economy have moved online, including moneylending, as people will naturally prefer more convenient options. With moneylenders available online and on mobile applications, potential borrowers can now inform them of their plans to borrow in advance. At the same time, lenders can inform potential borrowers about their different loan products and requirements early on. This saves both parties’ time and effort.
Conclusion
Much like how the rapid pace of technological advancement is changing our culture and way of life, the changes in both the global and local economies have changed borrowing practices in Singapore. Thankfully, most of them are for the better, and now many see loans as financial tools that are used to improve their lives.
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