In Singapore, money lending has become very popular. Many moneylenders have arisen in the market to assist individuals in situations where they need urgent cash. However, not all moneylenders want to support others!! Some money lenders just wanted to do this job to steal money from people by promising them fast loan approval and low-interest rates.
This is why the government has chosen to regulate the money lending industry and has implemented a variety of rules and regulations. Those who conduct their money lending activity legally will be referred to as “licensed moneylenders”, and those who do not enroll with the government policies will be referred to as “unlicensed moneylenders”.
But in the hunt of getting money urgently, a number of people forget to ensure that they are working with licensed moneylenders or unlicensed ones? They don’t even try to research if their money lender has successfully registered under government money lending rules & regulations. As a result, they are more vulnerable to scams and financial crises than they were before.
In this write-up, we’ll put a deep light on the factors to ensure that you’re dealing with a licensed moneylender in Singapore. Believe us, you’ll be able to choose & identify a licensed moneylender for you if you read over all criteria and weigh them while making your decision.
Why lose your time? Let’s get started reading!!
The below are 5 effective ways to guarantee you’re dealing with a legal money lender:
The first and most important step in evaluating whether or not you are dealing with registered moneylenders is “advertisement”! People used to see advertisements for various moneylenders in Singapore and call them to inquire about the best loan deals. If they are unlicensed moneylenders, they will be more likely to support you while lending you money, but they will certainly charge you a high rate of interest.
The licensed moneylenders, on the other hand, would never approve a loan by telephonic consultation. Instead, they’ll either invite the individual to come to their registered office or send their experts, filling out the necessary documentation and then lend money.
There are many other ways to determine whether or not you are working with registered moneylenders. Have a look!
- Registered moneylenders may advertise their loan offers in consumer or business directories.
- All will be advertised on their respective official websites.
Unlicensed moneylenders would be the only ones advertising outside of these ways. Before you get into the deal, make sure you understand this!!
2. Registered Office
A number of moneylenders used to operate entirely online, with no physical office in Singapore. However, you must ensure that you do not put your interest in any of these moneylenders in order to obtain a loan. Since they are not licensed with Singapore’s Ministry of Moneylending, they are unable to hold their relevant office.
Don’t consult until you’ve found a moneylender with a physical address and evaluated their authorization. One stupid move can put you in the midst of a slew of other issues, making it impossible to figure things out. So, “look for your choices, pick the best one, then go with it”.
3. Up-Front Payments & High-Processing Fees
Be mindful of the high-processing costs and up-front charges. Don’t fall victim to an unlicensed moneylender that demands upfront costs and heavy processing fees if you’re looking for a fast loan approval process. We agree that in an emergency or financial crisis, you need a quick loan but above all, don’t ever forget to consider the consequences of your wrong decisions!!
Registered moneylenders, such as Jurong East Moneylenders, would never ask for upfront payments or charge unnecessarily high-interest rates while lending money. They approve the loan based on the applicant’s FICO score and then assist them in meeting their urgent needs.
4. Terms & Conditions
If the moneylender presents you with a series of loan offers but fails to thoroughly describe the terms and conditions, suspect that something is wrong with the policies. Don’t ever sign something without first reading the loan offer’s terms and conditions.
They might also try to attract you by listing all of the benefits of a loan deal such as “personal loan interest rate Singapore” so that you make a hasty decision. But on top of all, it would be safer to do some research beforehand.
Registered moneylenders often complete the necessary paperwork, allow the borrower time to review the loan terms and conditions, and then lend the funds. They also carefully review the applicant’s profile to ensure that it complies with the moneylender’s ministry regulations. If your preferred moneylender isn’t, politely decline the loan offer.
5. Contract Details
The licensed moneylenders would never hide details about past clients, contracts, or loan agreements from you. In reality, they will tell you about the success stories of their respected borrowers, such as how their various loan forms helped them meet their emergency needs.
Unlicensed moneylenders, on the other hand, would never engage in such practices. They would attempt to hide contract details as well as the number of qualified candidates they have assisted.
They would never let you get into the contract details of the loan offer, so you won’t be able to uncover any improper terms and conditions. Therefore, it is advisable to ensure you choose the moneylender wisely.
How to Find a Licensed Moneylender in Singapore?
We hope that after reading the 5 main ways mentioned above, you can better determine whether you’re dealing with a licensed or unlicensed moneylender. Is that correct?
However, one more query that users have is how to locate a licensed money lender near me! We’ve figured out the answer to this one as well.
We’ve assembled a rundown of some of the fantastic options to explore that will assist you in hiring a licensed moneylender. Take a deep dive!!
1. Evaluate the Rate of interest
The interest rate is the first and most important aspect to remember when looking for a licensed moneylender in Singapore. The ministry of money lending has determined that all licensed moneylenders in Singapore would charge the same rate of interest.
“Licensed moneylenders are authorized to charge a maximum interest rate of 4%”.
If you’re getting this much interest from all of the local moneylenders, check the official website and see if it’s licensed or not. You’ll be able to make an informed decision if you look at the ISO certification.
2. See Processing Fees Criteria
Only processing costs, penalty fees, and other fees are charged by licensed moneylenders, and they are explicitly stated in the loan original contract. If you’re not required to pay any extra fees apart from those listed here, you’re either working with a registered moneylender or on the way to consulting one.
If the moneylenders you’re about to interact with are asking you more than these payments, don’t take the loan. They may be fake or want to rob you of a large sum of money because they are unlicensed moneylenders.
3. Consider Privacy of Data
Make sure the moneylender is liable to keep your confidential data secure! Registered moneylenders would never ask you for your NRIC, passport, password, internet banking details, driver’s license, or any other form of personal identification.
If your chosen one requests the same, don’t divulge any information and decline to take out a loan from them. Find another moneylending organization that is known for keeping borrowers’ confidential details private and secure.
4. Verify Legal Status
The moneylender should be registered with Singapore’s Ministry of Law, which is responsible for monitoring all licensed moneylenders. You can confirm your moneylender’s status by going to the Singapore Ministry of Law’s official website, which has a list of all licensed moneylenders.
You can quickly learn about the legal status of your preferred moneylender, as well as the return policy, amount to be borrowed, and late payment penalties, from the list of moneylenders. If the moneylender legitimately justifies any of these aspects, you’re ready to go. You should go ahead and take a loan without fear.
Applying for a loan, whether for a personal or business one, can be a tough decision. It’s important to pick a licenced moneylender if you want to succeed.
Nevertheless, if you’re searching for a licensed moneylender in Singapore, the tips mentioned above will undoubtedly be of great assistance! In addition, we’ve included a list of excellent ways to validate a licensed moneylender. Read it carefully so that you don’t end up in a financial trap.
Hopefully, you’ve enjoyed reading and, if you have any concerns, you can comment to us!!