Regulations for In-Person Loan Application
It’s a regulation that licensed moneylenders must meet borrowers in person at their approved place of business to verify their identity before granting any loan. Loan transactions conducted entirely online or outside the approved business location are not allowed.
Therefore, before you visit a licensed moneylender’s website, it is highly recommended that you verify both their physical and website addresses using the list of Registry of Moneylenders-approved licensed moneylenders.
There have been cases where consumers are not aware of such regulations. Because they mistakenly think that the loan application process can be done entirely online, their loan applications have been rejected by moneylenders.
Required Documents for Personal Loan Application
What do you need to prepare before visiting a licensed moneylender’s approved place of business? The documents you will need to bring along depend on your residency status.
For Singaporeans or PRs:
- NRIC
- Singpass
- If renting, provide both:
– Tenancy agreement
– Proof of address (e.g., phone bill or utility bill) - Payslips for the last 3 months (if available)
- Bank token
For Foreigners
- S Pass/Employment Pass with a minimum 6-month validity
- Passport
- Residence information in the form of both:
– Phone bill or utility bill
– Tenancy agreement - Payslips for the last three months, if available
- Bank Token
- Employment contract
- Staff card
Remember, these are just the basic documents normally required for the application process. Some lenders may have more required documents. Thus, it’s best to check in advance for the exact documents required before you visit the moneylender’s place of business.
Benefits of In-Person Loan Applications
Loan applications processed entirely online may appeal to many consumers, particularly those who are digital-savvy. But it’s not necessarily the best option for everyone. In-person loan applications offer benefits for borrowers including:
Personalised, face-to-face loan experience
There’s no chatbot to talk to here. By visiting the store of a licensed moneylender’s approved place of business, you can interact directly with a loan officer or staff.
Best for borrowers who are not rushed for time
If you’re not rushed for time or in a hurry to get funds immediately, in-person loan applications may work better for you. Considering that borrowing money is a major financial decision, you will need the time to ask questions and fully understand the financial calculations for the loan.
By talking to a loan officer, you will also have more time to carefully consider the loan terms and conditions before you sign off the loan application.
Maintains relationship with lender
Borrowers who have already established a relationship with a bank or licensed moneylender may prefer an in-person application instead of an online application. A loan officer may be more familiar with the finances of those borrowers and give better advice on their financial needs.
Complies with regulatory requirements
As mentioned above, it’s a regulation by the Registry of Moneylenders that requires borrowers to meet licensed money lenders in person at their place of business to verify their identity before any loan is granted. Complying with this regulation also means that both the borrowers and lenders are protected by the law.
Tips for a Successful In-person Loan Application
Applying for a personal loan may be a daunting task for some people. But that shouldn’t be the case if you’re well-prepared. Here are some tips for a successful in-person loan application.
Gathering necessary documentation
It’s important to check upfront with the lenders on the required documents for the loan application process. Different lenders may have slight variations to the requirements, but normally the status of your residency will determine the exact documents that you need to bring along for the application process.
Preparing questions for the lender
This may appear obvious, but having some questions prepared will make the loan application process smoother. You may have questions about the interest rates charged or the duration of the loan term. These can be addressed swiftly on-site by the loan officer.
It’s way better to ask questions to the loan officer before signing off on the application instead of having some doubts later after you’ve signed off the application.
Conclusion
Taking out a personal loan is a big decision for many of us. Thus, borrowers need to take the time to fully understand the application process and regulations.
While in-person applications may appear to be slower compared to online applications, they can offer greater peace of mind for borrowers. Borrowers also need to understand that identity verification is a crucial part of the loan application process with a licensed moneylender. This requires them to visit the licensed moneylender’s approved place of business to complete the loan application.
