Licensed money lenders are regulated by the Ministry of Law and offer a legal alternative to loan sharks. They are known to have excellent customer service and provide transparency on interest rates and fees.
They are required to verify borrowers’ identity through face-to-face meetings. They also must not use abusive language or intimidate borrowers.
Licensed money lenders
Licensed money lenders are private companies that lend funds to individuals. They are a useful option for those who are looking to borrow funds quickly and easily. However, it is important to understand the terms and conditions of a moneylender’s loan contracts before applying. You should also evaluate your financial situation to ensure you can afford to repay the loan. Failure to do so may result in additional fees such as late payment charges.
Generally, a licensed money lender will approve loans based on an individual’s annual income rather than their credit history. This is why they typically ask for payslips to assess a person’s ability to pay back the loan. In addition, there are certain rules that all licensed money lenders must follow to protect borrowers from being charged excessive fees. These include the following:
Avoiding a Bad Moneylender
If you are in need of urgent funds, it is natural to turn to a licensed moneylender singapore for help. However, it is essential to choose a reputable one with good customer reviews. In order to find the best lender, it is a good idea to read through online reviews of several different moneylenders. This will give you a comprehensive picture of their reputation and business practices.
A reputable licensed moneylender will always clearly explain their terms and conditions in writing. They will also return your documents once they have evaluated them and provide you with a signed loan contract. They will never keep your NRIC card or any other personal ID document, and they will not acquire information that contains passwords to your user accounts (e.g. Singpass account, ATM/debit card, internet banking or email). They will also not require you to make a deposit prior to disbursement of the loan, nor charge you a fee upfront that is labelled as an “admin fee”, “processing fee” or similar. They will also not ask for any payments to be made via third party applications like WhatsApp or SMS.
It is also a good idea to explore multiple review platforms when researching licensed moneylenders in Singapore. Doing so will provide you with a wider perspective, which can help you find the best moneylender for your needs.
How Much Can I Borrow from a Licensed Money Lender?
Licensed moneylenders in Singapore are required to adhere to strict regulations set out by the Ministry of Law. As such, there are limits to the amount of money that you can borrow from a moneylender for an unsecured personal loan. Any licensed moneylender that offers you a loan that exceeds these limits is likely operating illegally.
It is also crucial to check whether a moneylender has an official website. If they do, it should include their contact details and a link to their license. If you cannot find a licensed moneylender’s website, it is best to steer clear of them. Also, be cautious of any licensed moneylender that advertises on social media or through third party apps. They should not request your personal information such as passwords or PINs to bank accounts, nor should they be using unprofessional language when communicating with you.