Many Singaporeans find themselves requiring some cash from time to time. It could be for funding your education, car or home. It could even be for managing medical emergencies. It is in such situations when personal loans are much needed. However, for some Singaporeans, they are not able to access this loan avenue. This is because they have a poor rating.
Oftentimes as some individuals get desperate to urgently raise some money. Yet they are not able to get loans from the legal financial companies. Due to their strict regulations. Even then, they usually end up borrowing from other sources. However, before you choose to take on a loan from these other sources.
You will need to be wary of certain kinds of loans. This will help you avoid getting into bigger debts.
Demanding for Upfront Fees
The scams involving upfront payments normally require that you pay upfront fees. This is before they give you the personal loan. This fee is justified to be a compulsory processing cost charged to all borrowers.
It may even be classified as collateral needed owing to your poor credit. You might even be asked that you give your account details to this moneylender. You may be asked to do a transfer online to them. This will be in exchange for the promised personal loan. Soon after you make the transfer, this type of moneylender might run off with your cash.
Do not get surprised when they start ignoring your calls. Or even when they end all type of interaction with you. Always remember that legal moneylenders never ask borrowers to pay for anything. This before they offer them the loan money.
Lots of Uninitiated Contact
These type of lenders can send numerous emails. They might even call you every now and then. Legal moneylenders never turn to using such attempts. They do this so that they can source for prospective customers.
This is because they have no intention of disturbing you unnecessarily. Therefore, It is advisable that you ignore such spams. Alternatively, you could report these messages to the proper authorities.
Aggressive Lending by Loan Sharks
This type of moneylenders is commonly known as “Ah Long” among Singaporeans. The loan sharks often use unfair, dishonest or deceitful practices to lure borrowers. Often time those borrowers who desperately need urgent cash. This group of lenders normally target individuals who do not qualify for loans from legal sources. This includes sources like banks, owing to their poor credit rating.
As they try to find means of getting in touch with potential borrowers. Loan sharks will aggressively advertise. They will place adverts on platforms available online. Or even having then on public transport.
Usually, they will try to act friendly during the initial meeting. However, once you take personal loans from them their actions will drastically change. They will begin to harass you for payments. Because loan sharks are not bound by law.
Often they charge borrowers very high rates that would leave you much larger debts. It is therefore advisable that you avoid dealing with them.
Harassment and threats could come even before you get the loan. It could even come soon after you have borrowed from these lenders. Licensed moneylenders will never push you into dealing with them. This is because they know that this is your personal decision. That only you can make.
After you have received the loan. Loan sharks might start their threats. They might claim that they will use legal action against you for outstanding loans. They could scare you by naming your relatives saying that they might bring them harm. But only when the repayment has not been made on time. These moneylenders are normally bold.
Loan sharks often exploit the fear that borrowers get through their scare tactics. Such fear makes borrowers vulnerable therefore easy to be taken advantage of.
Fake “Licensed” Lenders
The so-called “legal” moneylenders pretend to be legal parties. They do so by using legal registration numbers issued by Singapore’s Monetary Authority (MAS). They then post adverts by using names of licensed companies. These will often show up as some kind of random emails or social media postings.
Before you choose to take loans from these type of moneylenders. Make sure to confirm they are who they say they are. You can do so by validating the company details such as hotline and website information.
Many times the real lenders are not even aware of these impostors. As they go around scamming prospective borrowers.
Guarantees for Online Loans
These loan types are recognized as bad credit loans or payday loans. These are usually offered as short-term loans. They are very handy to borrow, thus it makes them suitable for most.
Getting guarantees that you will get a personal loan before looking at your credit score. They even do not consider income and other private details. Then it is possible they are a scam.
Several of the online lenders are just trying to access your private details for fraudulent purposes. To help you identify whether the lenders are legal. You probably need to consider some of the following primary indicators:
- Having a physical business address
- Having a registered customer service landline
- Owning a physical store. This is in addition to their online platform
So at to make certain that you are transacting with a legal lender. It is advisable that take the time to do some research. This will allow you to learn more as regards the moneylender. This you can find out from dependable sources.
Even then, when you take out a personal loan from a moneylender. You need to plan your repayments. The reason being that mismanagement can lead to more financial costs. Also, your rating will be affected negatively. This is because a low credit score will lower the chance of getting loan approvals.
Sometimes you might require some cash every now and then. But you are not able to access loans from legal sources. Even under desperate situations, it is advisable that you avoid dealing with illegal lenders. Be sure to learn about ways to spot them.