As you are searching for a reputable and reliable lender in Singapore. It can sometimes be difficult to tell apart licensed moneylenders and loan sharks who operate under cover. You need to look for a lender who is able to provide you with professional financial help. The moneylender should be in a position to offer you with credible advice. The lender should also give you a convenient repayment schedule that will fit your financial situation.
Below is a look at some insightful indicators of licensed lenders in Singapore.
Fixed rates of Interest
When it comes to money lending, interest rates are unavoidable. To add onto the loan amount borrowed, licensed moneylenders will have interests depending on the rates currently in the market.
Even then be cautious when you get an offer of incredibly low interest that seem too tempting and unbelievable. The one thing you should be avoiding when faced with a financial crisis is dealing with a fraudulent lender.
Legal and Credible
It will not take you much time to do background checks on the moneylender you decide to work with. By doing this, you will save yourself from lots of complications in future. That is should the money lender only for them to be unlicensed. Also, make sure that your money lender of choice is registered under the Singaporean Law Ministry. The lender should also be listed with the Moneylender’s Registry.
It is only after you have verified the information about the moneylender and that they are authorized to run their business. Thereafter, you can proceed and take out a loan product with them. The moneylender should have a significant number of employees and a physical office. This is among other many positive indicators that the lender is licensed.
Have No Hidden Costs
Normally the licensed moneylenders ensure that they follow the step-by-step approach. This will ensure that a borrower is fully aware of what they are getting into. You need to make sure that you investigate things like conditions and terms in the loan contract. This is best done before you sign the loan contract.
Also make sure once you are satisfied with the terms and have signed the agreement, get a copy of the contract to keep. In cases where you are asked to sign any incomplete documents. Then it is actually advisable that you end the dealings completely.
Flexible Payment Plans
Depending on your capability to pay back the personal loan. A fitting repayment plan should be discussed properly with your moneylender. Make sure you do this before you can make the final decision to borrow a personal loan. Use this period to make inquiries regarding the choice of plans and the loan packages on offer.
Keep in mind that after the contract has been signed, you are bound by the stipulated terms of the loan contract. Thus you cannot back out of the loan deal taken.
Why Borrow From A Licensed Money Lender
The one guiding rule in money lending: do not choose to deal with money lenders who have no legal license. Even when you are in dire financial crisis. It should also not even be considered as the last resort.
Before deciding on your moneylender of choice, it is important that you do some research. Also, avoid making the error of getting into the traps set by the illegal money lenders (I.e loan sharks). When you buy into their convincing stories. You will only wind up dealing with the harsh repercussions much later.
Although loan shark acquires their money supply using illegal methods and even they do not get caught. Legal moneylenders run their businesses strictly following the Singaporean Moneylender’s Act.
When any of them does business illegally or do not adhere to the set standards. They risk the likelihood of going against the authorities. In so doing they can lose their license and even be prosecuted by law.
Here are some of the advantages you get when you choose a reliable and legal lender:
1) Fixed Rates and Agreements Honored
When dealing with the legal money lenders, the agreements made—interest rates, the loan amount, as well as contract terms—these get honored, no questions asked.
When you decide to borrow a personal through licensed money lenders in Singapore. The unimpressive credit records should not worry you. This is because legal lenders do not dwell on your credit history. The efficient borrowing process by the licensed money lenders is reliable.
This is because you will not have to worry about lengthy and tedious loan approval processes. As soon as you submit the necessary documents and the loan application is approved. You will have the funds in your account usually in less than 24hours. Hence you will be able to handle your financial obligations on time.
3) No Shady Business
In Singapore, the licensed money lenders run their operations in a physical office. This is the place for you to visit during the loan agreement signing phase of the application. Also, this is where they have a registered telephone line which is easy to contact.
Rather than depend entirely on text messaging and calls when communicating. Just like what the illegal money lenders often do. The licensed money lenders always will do all their business transactions such as contract-signing from their office.
4) No Harassment
When you choose to deal only with a licensed money lender. It then means that you will avoid facing unpleasant issues. Since legal money lenders operate their businesses based on the guideline and rules established by the Singaporean government. These rules and guidelines come with reasonable rates of interest that follow with the market rates.
The licensed moneylenders in Singapore are recorded on the Law Ministry’s website. The information is usually updated every month. Thus you will be able to tell whether a lender is licensed or not easily.
In summary, though it can at times be hard to differentiate licensed moneylenders and loan sharks. It is best that you seek a lender who can provide you with professional financial assistance. They should also have a convenient repayment schedule that suits your financial situation.