In reality licensed moneylenders can come in handy when you need money fast. Unfortunately, an unlawful business of ‘loan sharks’ posing as money lenders has risen significantly in recent years, preying on innocent individuals who have nowhere else to turn. These loan sharks are notorious for their shady business tactics, which include charging super high interest rates—sometimes as much as 40% per month or more—and threatening, coercing, and harassing borrowers.
Thus, many people find it challenging to find the. In Singapore, there are dozens of legal money lenders. It’s like looking for a needle in a haystack to figure out which of these companies to trust. Here are five crucial characteristics of a suitable money lender in Singapore.
- Verify If The Moneylender Is Appropriately Licensed.
The ability to obtain a license is probably the most significant attribute of a suitable money lender. A licensed moneylender must follow the laws and regulations of the country’s Ministry of Law. Borrowers are therefore protected under the law. You may rest comfortably that if you borrow money from a certified money lender, they will not take full advantage of you.
In the past, unlicensed or illegal money lenders in Singapore have caused a great deal of harm. In the past, police have detained dozens of people suspected of being shark loans for illegal operations. Unlicensed moneylenders in Singapore, often known as “Ah Long,” would frequently charge excessive interest rates as well as hidden and additional fees. Furthermore, if a borrower cannot pay, these illicit money lenders will use threats and violence to scare them.
The best way to tell the difference between licensed and unauthorised moneylenders in Singapore is to look at the Ministry of Law’s Registry of Moneylenders. There are currently 156 licensed moneylenders. Make sure you’re only dealing with one of them.
Keep in mind that the Registry of licensed Moneylenders Singapore is updated regularly, so you’ll need to keep an eye on Ministry of Law postings to make sure you’re looking at the most recent version.
- There Are No Hidden Fees, And The Interest Rate Is Low.
There should be no hidden fees in your loan application. Remember that money lenders are required to pay three types of fees: (a) a fee of it not more than $60 per month of repayment, (b) a fee and no more than 10% of the loan principal that would only be paid once the loan is approved, and (c) the legal costs required by law for a successful claim by the moneylender for the recovering of the loan.
Meanwhile, a Singapore money lender can only charge an interest rate of up to 4% per month. All sorts of personal loans are subject to this maximum limit. You may be able to locate a credit organization that has reduced interest rates. Lower interest rates imply that you will pay less to the creditor.
- Loan Terms And Tenure Flexibility
While banks are strict in their credit conditions, the greatest credit firm would be willing to provide its consumers with flexible loan terms and tenure. You should negotiate the length of time you have to repay the loan as a consumer. A good credit firm is sensitive to a borrower’s unique demands and circumstances. Flexible lending terms and credit tenure are essential.
Customers with a poor credit history or who are experiencing financial difficulties should pay special attention.
- Customers’ Transparency
The best moneylender Singapore has to offer is someone straightforward and honest with their clients. Customers should be well-informed and well-versed in the transactions they are entering into. The credit company representative should describe the loan terms in simple language so that the consumer understands every component of the contract. Customers should also never be intimidated by the credit company’s customer service and should instead feel free to ask questions and seek clarifications.
- It Safeguards Your Personal Information.
Today, many best licensed money lenders in singapore are conducted online. Customers are thus digitally exchanging their private and personal information with registered money lenders. Given this, a credit company’s ability to provide a secure website to conduct these transactions is critical. Borrowers should only deal with credit businesses that have a secure website. You may check out a credit company’s website to see how secure it is. Make that the website’s URL page has a padlock icon next to it. You can also check the credit company’s records.