How to Choose a Licensed Money Lender in Singapore
If you’re in need of quick cash, there are many options available. However, it’s important to work with a licensed money lender who follows the strict rules and regulations established by the Singapore government. This is to protect borrowers from loan sharks and other illegal businesses. Licensed money lenders are also required to display their licence prominently at their place of business.
The Ministry of Law has set strict guidelines for licensed money lenders in Singapore. These guidelines ensure that borrowers are protected from unscrupulous lending practices and are given fair interest rates. For example, a licensed moneylender may not charge more than 4% per month. This is a maximum rate that can be charged, and it must be calculated based on the outstanding balance of the loan. Licensed moneylenders must also be transparent about their fees and charges. For example, they must not charge an application fee or an administrative fee that is more than 10% of the principal loan amount.
When choosing a licensed moneylender, make sure to check their customer reviews online. If you see lots of negative reviews, it’s best to avoid that company. It’s likely that they don’t treat their clients well or have high interest rates. You should also read the terms and conditions carefully before signing any documentation with a licensed moneylender.
Licensed moneylenders are not allowed to solicit loans through phone calls, text messages, or social media platforms. This is to protect borrowers from harassing calls and unwanted texts from unlicensed money lenders. Moreover, if you receive any suspicious messages, report them to the police immediately.
Before a moneylender can approve your loan application, they must verify your identity and conduct financial assessments. This includes checking your payslips, tax notices, and other documents to ensure you’re a legitimate borrower. They must also conduct face-to-face meetings with you to discuss the terms and conditions of your loan. Lastly, they should not withhold any personal documents or information, such as your passport, NRIC, or driver’s license, from you.
Another important thing to consider is the length of time you’re going to be paying for your loan. Ideally, you want to repay your loan as soon as possible. This will help you save on interest costs and reduce your risk of defaulting on your loan. However, it’s also important to consider how long you need your loan for and how much you’ll be paying in total.
If you’re in need of fast cash, it’s a good idea to consider unsecured loans from licensed moneylenders in Singapore. These loans are ideal for wedding expenses, household emergencies, or even medical bills. You can also use them to inject cash into your small business, which can be helpful for growth and sustaining your operations. Moreover, they’re typically easier to get approved for than bank loans and have flexible repayment terms. However, you should be aware that if you fail to pay back your loan, it could lead to debt collection and other legal consequences. money lender singapore