According to the Moneylender’s Act in Singapore, financial organizations that lend money in accordance with the law are legal moneylenders. As a matter of principle, you should always make sure that the company you are going to borrow money from is trustworthy. There are some easy ways to ensure that, and we have discussed those at length in this article.
Whether you’re a local or a foreigner, everyone can borrow money even from private moneylenders in Singapore. Though there are some conditions applicable to foreigners, the entire process is quite simple, straightforward and fast. Let’s now look at how you can take a loan from a licensed moneylender in Singapore.
Is it safe to borrow from a licensed moneylender in Singapore?
Before you make any important decision, it’s natural to have some reservations and to wonder whether you’re doing the right thing. Loaning is no different. Many people end up not taking a loan because of second thoughts about risk and safety even when it could prove to be a financial game-changer.
As long as you’ve approached a licensed moneylender for your loan procurement, it should be safe to receive that loan. But now you’re wondering how do you know if a moneylender is licensed or not? We’ll answer that question in a minute, let’s clear the basic doubt first.
Yes, it is safe to borrow money from a licensed moneylender in Singapore. This is because the acts of a licensed moneylender are supervised by the above mentioned statute-the Moneylender’s Act. As long as a person is a moneylender under this Act, there are certain rules and codes of conduct they are expected to follow. Contravention of those rules can hurt the moneylender more than their misconduct can hurt you. So you can rest assured that a licensed moneylender will have your best interests at heart.
How to choose a reliable licensed moneylender in Singapore?
There’s no lack of moneylenders in Singapore, but there’s only one that will be the best for you. The ideal moneylender Sg will understand why you need the money and will extend a helping hand when you most need it. Here’s a small checklist to find the moneylender on whom you’ll be able to rely.
A business’s client satisfaction can tell you a lot about how the said business will treat you. It is always wise to go through the client testimonials and reviews available online on the moneylender’s website. A quick scan should be enough to tell you how previous clients have fared and how satisfied they were with the service. If you’re interested in a lender that is relatively new with few testimonials, you could always check their license credentials through the method discussed below.
If you’re unable to find testimonials online because not every moneylender will have an online presence, it is just as effective to do some ground research. You can start by asking family members or friends who took loans from moneylenders whether they were happy with the outcome. Referrals are an effective way of finding reliable businesses and who knows, it might even make the lender look at your application positively.
Ease of Loaning
We live in a fast world and everything is quick these days. Some have even fast-tracked the long and drawn-out process of lending money. Today, many reliable lenders also offer the option of applying online in advance to lend money to their clients. This is simply for the latter’s convenience as the clients only have to head to the office for the completion of further formalities. If you’re looking for a moneylender you can count on, this is definitely a positive feature to consider.
How to identify a licensed moneylender in Singapore?
When you know what to look for, it’s quite easy to figure out which moneylender has a license. This will also help you decide if it’s safe to borrow from them.
Beware of Loan Sharks
Just like licensed moneylenders, Singapore is also peppered with unlicensed moneylenders, commonly known as loan sharks. They can reel in unsuspecting people into taking a loan and then charging very high interest rates and sometimes even resort to threats. A loan shark will usually have a rough attitude and may even try to intimidate you into borrowing the money. They also insist on completing the procedure quickly without completing the due formalities you would expect of a loan agreement.
Confirm on the Ministry of Law, Singapore Website
After finding a moneylender of interest, you should first confirm whether they have a license by referring to the list available on the website of the Singapore Ministry of Law. The list is updated regularly and has information like the license number, business name and address. If the license number is not on the list, they’re an unlicensed moneylender and have likely forged the license.
How much interest do moneylenders charge?
The maximum interest a moneylender can charge you is capped at 4% per month. If your moneylender charges you more than this, you can report it to the authorities. The statute is there to administer the actions of moneylenders and protect the borrowers. Additionally, late repayment interest also maxes at 4% and the late fees cannot be more than S$60. In no scenario can the additional charges, if any, exceed the principal loan amount. In conclusion, your interests will always be protected if you’re borrowing from a licensed business.
We at moneylender Singapore take immense pride in our proactive approach to delivering financial assistance. We offer a variety of loans depending on the specific needs of every client. Think a loan could be of help to you? Call us and book an appointment with the best Lucky Plaza moneylender.