While some of us may ask family and friends for assistance, others may turn to banks. Some people, however, are not as fortunate to avoid rejection. Licensed money lenders may be able to help in this situation.
It is safe to borrow money in Singapore from a licensed moneylender, but you should confirm that the lender is legitimate before you sign any documents. Contrary to popular belief, obtaining a loan from a registered moneylender is in no way comparable to using a loan shark as a source of credit. Despite claiming to be “licensed” lenders, loan sharks are not actually recognized as such by the law.
Let’s examine what to watch out for while taking out a loan from best money lender in Singapore:
What are licensed lenders of money?
The Ministry of Law is in charge of regulating licensed money lenders. To function, businesses that want to offer loans must seek a license from the government and have it updated on a regular basis. Licensed money lenders are subject to a number of regulations, including adhering to a cap on interest rates and administrative costs. Additionally, no print or online advertisements for these lenders’ services are permitted in the mainstream media. Above all, licensed money lenders are not allowed to use any form of harassment.
Who exactly are unlicensed moneylenders?
Unlicensed lenders are referred to as loan sharks or illegal money lenders. They occasionally represent themselves as licensed money lenders, but in reality, they are not authorized to offer loans by the Ministry of Law. These unlicensed lenders frequently turn to SMS or WhatsApp marketing to find new customers and use intimidation to force their victims to make payments.
What to do before approaching a lender for a loan
Make sure the lender has a physical location. All Singaporean licensed money lenders are required to operate exclusively out of a registered office. Pay attention to lenders who insist on meeting you in a public place to discuss a loan offer; these are likely to be illegal lenders. Pay attention to how staff acts. Always see your loan officer in person so that you can learn more about the organization you are borrowing from and determine whether it makes you feel secure and at ease. They must to go over the full agreement with you and clearly explain each and every clause.