While Crazy Rich Asians and Bling Empire may have led the world to believe that Singaporeans are swimming in cash, the reality is that the median monthly income here is only around $4,680 – and this figure drops to $2,535 for non-professionals.
When living in a country that’s ranked the second most expensive city in the world (according to a Worldwide Cost of Living 2021 survey), this may be enough to get by – but possibly not enough for emergencies or unexpected expenses. In fact, even Singaporeans with higher spending power may occasionally need additional funds for necessary purchases or timely investments.
This is where loans, and money lenders, are an option. A licensed moneylender in Singapore can provide the much-needed capital when they are needed the most, and these loans can come in a wide variety of forms for a wide array of applications. Everything from educational loans to loans for setting up a new business or a start-up, can be obtained from a licensed moneylender in Singapore. Yes, there are several unlicensed and illegal moneylenders present as well, but obtaining a loan from them is really risky and a bad idea overall. These illegal moneylenders may be engaged in fraudulent activities, and may even play around with the numbers involved, and for such reasons, it is best to avoid them all costs.
When in sudden need of money, loans are the best option to look out for. But with the lengthy and time-consuming procedures, bank loans are a tough nut to crack. Quick Loan is a trusted and licensed money lender, that can fulfil cash requirements without the risk of unlicensed moneylenders and the back-breaking procedures of the banks. Being a legal entity, they do not pose the chance of manipulating the account statement and exorbitantly increasing interest rates without prior notice. Moreover, borrowing from a licensed money lender would not affect the credit score. You can opt for easier repayment options through monthly instalments. Quick Loan is a trusted entity and has been one of the most-opt money-lending options across Singapore.
In this guide article, we’ll discuss how you can secure a loan from a legal moneylender who will offer you a fair deal – while ensuring that you (and your loan transaction) are protected by the law.
Tip 1: Make sure you choose a licensed money lender
One of the biggest concerns people have when taking a loan from a private money lender is, “Is it safe to borrow from a licensed money lender in Singapore?”
The answer to that question is a resounding yes, it is safe and secure to borrow money from a licensed money lender in Singapore. These moneylenders can lend you several types of loans like personal loans, education loans, startup loans, etc., and that too at a predetermined and rational rate of interest, with all the necessary documentation and procedures that are mandated by law.
A licensed money lender follows the standard operating procedures that are mandated and permitted under law for recoveries, and would never harass or intimidate clients, which is something that illegal and unlicensed moneylenders frequently resort to.
After all, many of us have grown up with the image of a typical “ah long” lending money to borrowers in shady transactions, charging exorbitant interest rates, then taking the law into their own hands when victims can’t pay up. These are stuff that characterizes illegal lenders.
All these factors emphasize the importance of approaching a licensed lender, who is registered and permitted by law to operate a moneylending operation, and not some shady organization squeezing unsuspecting victims of exorbitant sums of money.
Licensed vs unlicensed (illegal) money lenders
This is where it’s important to distinguish between licensed money lenders and illegal ones – you know, the folks who send spam your phone with unsolicited messages and don’t have a visible presence anywhere outside of a phone number. (i.e., No website, physical office address, license number, etc.)
A licensed money lender, on the other hand, is a company that has attained a license from Singapore’s Ministry of Law. This means the company and its owners are strictly bound to our nation’s moneylending laws – with any infractions possibly costing the company their license.
Tip 2: Find out the interest rate and your monthly repayment
Singapore’s Moneylenders Act decides the maximum interest rate that can be charged to borrowers, the maximum amount a borrower can loan, and more. All these regulations ensure your safety when you take a loan from a licensed money lender.
Similar to a bank loan, the interest rate offered to you will be determined by various factors – such as your annual income, loan amount, and so on. The good news is that legal money lenders have interest rates capped at a maximum of 4% per month, as regulated by the Moneylenders Act.
Here’s an interesting fact: Some borrowers choose to spend with their credit card, using their credit as a “loan” from the issuing bank. What they don’t realise is that interest rates can go up to a staggering 26.9%, making these far more expensive (and potentially financially crippling) than loans from any legal money lender!
After finding out the interest rate of your loan and your monthly repayment, decide if you can afford it – and commit to completing your repayments without issue. This will make it easier for you to access loans from the licensed money lender in future, should you require the cash.
Tip 3: Identifying a licensed money lender
Now that you know the importance of taking a loan from a legal money lender (instead of an unlicensed one, or “borrowing” from your credit card), you need to find a licensed money lender and be certain that they’re operating legally.
This is really simple to do, and should take you just a few minutes. These are some simple ways.
See the Ministry of Law’s list of licensed money lenders in Singapore
You can download the latest list from the Ministry of Law’s website and see if your shortlisted private money lender is recognised by the ministry.
Did you hear about this money lender from a text message or phone call?
If so, save the number as “illegal” or “unlicensed” and ignore this money lender. Know that a legal money lender can only promote their services through legal channels, like their website or their storefronts. They cannot solicit for customers vis SMS and calls.
Check their license number and status
All legal money lenders have a license number that is usually prominently displayed on their website and paperwork, which you can use to verify their legal status. And as highlighted earlier, you can also check their status on the Ministry of Law’s official list of Singapore money lenders.
Getting a loan in Singapore doesn’t have to be a potentially difficult activity, especially if you are aware of the formalities and legalities that are involved. In fact, it is extremely easy to secure a loan in Singapore when compared to other countries. Quickloan is a great option if you are looking for a good, licensed moneylender in Singapore to tackle all your liquidity and monetary needs, be they short-term or long-term. We execute fast and simple approval and disbursal processes, and the interest rates provided are so convenient, that they do not put a strain on your financial health.
Getting started
Need a loan to tide over an emergency, make a purchase or capitalise on a timely opportunity? QuickLoan Pte Ltd is a trusted licensed money lender in Singapore that takes the hassle and complications out of the loan process – and can disburse loans to you in just 30 minutes (or 60 minutes for business loans).
Our low monthly interest rates and flexible payment plans offer you peace of mind – and our status as a legal, licensed money lender in Singapore, means that your best interests are protected by our nation’s money lending laws.
For enquiries, you can send us a message via Whatsapp or walk into our office in International Plaza right next to Tanjong Pagar MRT, which is open from Mondays to Saturdays.
