Licensed money lenders are private loan organizations that can help borrowers with their financial emergencies. They are typically lenient with loan approval and offer a wide variety of loan plans. However, it is important to find one that fits your credit profile and needs. To do so, read customer reviews and check whether the lender is on the list of licensed money lenders.
It is also important to understand the guidelines that MinLaw has set for licensed money lenders. These guidelines are intended to protect borrowers from being victims of harassment and coercion. If a licensed money lender violates these rules, it could result in hefty fines.
A legitimate licensed money lender will never resort to any form of harassment when collecting loans. They will only charge a maximum late interest rate of 4% per month, which is applicable to both secured and unsecured loans. Moreover, they will only levy late interest charges for the first three months of your repayment.
You should always assess your finances and only borrow an amount that you can comfortably repay with your current income. Otherwise, you risk getting into a cycle of debt that will only make your financial situation worse. In addition, you should avoid revolving credit, as this will add to your existing debts and can be very expensive.
Many borrowers in Singapore rely on licensed money lenders to overcome financial difficulties such as paying off existing debts, consolidating their loans, and funding home renovations. These lenders are also known as ah longs in the local community. Unlike banks, these companies are able to provide residents and foreigners with quick cash loans. In addition, they usually offer competitive rates and have an easy application process. money lender singapore