Paya Lebar is located in the Eastern region of Singapore. Although a small town, it is known for its charm because of the old heritage buildings, markets and food centers. If you like to Asian cuisines, Paya Lebar will never run out of options.

Summary of Top Legal Money Lenders of 2021

Sometimes, satisfying our cravings means spending extra money. Good thing, there are reliable moneylenders around the area. While it is a beautiful place to explore, people still need to take necessary precautions, especially when taking a loan; as loan sharks are still everywhere.

Fortunately, doing the due diligence can save you from falling victim to scammers. There are some ways to identify whether or not you are dealing with a licensed money lender.

How to Identify a Licensed Money Lender?

  • Clear terms of the loan
    A licensed money lender does not have any grey area. They will explain the terms and conditions of your loan in the language you understand. It is a requirement for all licensed moneylenders in Singapore to clearly explain loan terms to ensure borrowers understand the payment method options, interest rates and repayment period.
  • Detailed contract
    Another indicator that you are dealing with a licensed money lender is when you have a contract where information such as interest rate, late payment fees, repayment period and other essential details are outlined. If a moneylender asked you to sign a blank document, refuse the offer because the company can be a loan shark in disguise.
  • Reasonable interest rate
    Singapore sets guidelines on interest rates that all licensed moneylenders need to follow. The maximum interest rate should be 4% per month and any lender that charges higher than the acceptable amount is already considered a red flag. Many loan sharks charge as much as 40% per month making it difficult for borrowers to repay their debt.
  • No hidden fees
    Beware of moneylender that charges more than three types of fees. Based on Singapore law, a lender is only allowed to charge three types of fees excluding the interest rate. These fees are late payment fees, up-front service fees, and legal fees.
    If you come across a lender that charges fees above the maximum, then you are most likely dealing with a loan shark.
  • Listed on the Ministry of Law Website
    If you are not sure whether or not you are in contact with a licensed moneylender, visiting the Ministry of Law’s website will give you the information you need. The site can be a helpful tool in steering clear of loan sharks. If they are not listed on the website, then it means they are unlicensed and have questionable motives.

Factors to Consider When Taking a Loan

  • Interest Rates
  • Type of Loan
  • Repayment Term
  • Credit Score
  • Financial Situation
  • Debt-to-Income Ratio
  • Value of Collateral
  • Liquid Assets

How Can Moneylender Review Help You?

Doing your homework can spare you from the stress associated with loan sharks’ illegal schemes. If it’s your first time to be in this spot, and you have no idea where to find a reliable moneylender in Paya Lebar, Moneylender Review is here to help you. They will give you a list of credible moneylenders so you won’t fall victim to loan sharks.

Conclusion

Thorough research is very important in taking a loan. Be sure to know the pros and cons and let Moneylender Review help you find the best option that suits your needs.

To obtain up to three quotes from the best licensed money lender in Singapore, all you have to do is to fill out the online form to get started today!

List of Money Lenders in Paya Lebar