Licensed moneylenders are not some white fairies who give away money. If you need a short-term loan, it is completely reasonable to check what moneylenders will offer you. There are several things you should know before signing a contract with one of them. The first and really important thing is checking in details the money lender.
How to check if the moneylender is licensed?
You should visit the website of Ministry of Law and find the page for moneylenders. There you will find a complete list with the names, addresses and license numbers of all registered moneylenders in Singapore. If you don’t find the name of your moneylender in there, you definitely don’t have to borrow a loan from him. This information is public because it should help people to find out “good” moneylenders.
Don’t make a mistake to consider that if one moneylender is licensed he will just give you money.
Although the government has plenty regulations for this business, there are a lot of hidden underwater rocks. You can pay to a lawyer for a recommendation but have in mind that if you need a loan, paying a lawyer is not the cheapest thing.
To be a moneylender is just a business, Ministry of Law has regulated only licensed ones. In LoanSingapore.sg you will find a list with trustworthy licensed moneylenders. This website is a directory for credible information and reviews for different moneylenders and banks. Don’t you think that all moneylenders offer the same interesting rates and terms? Imagine that you are looking for a long-term loan from banks; you will check at least 2 or 3 banks because they have different conditions. Choosing the best money lender in Singapore should be the same process.
Pay attention to the administrative fee because, after regulations from 2015, moneylenders are not allowed to charge their customers more than 10% of the loan principal. In addition, interest rate and late interest rate cannot be more than 4% per month. If the amount client pays to the moneylender is more than doubled principal then this is not legal. If you consider getting a loan from a legal money lender, have in mind that he is obliged to answer all your questions. In other words, if you don’t understand something about the interesting rate or you need more explanations about the contract, the law forces him to explain to you until you understand it. This is really helpful because most financial services have contracts that are kilometer long and people don’t read them at all. It sounds really irresponsible but people usually don’t have enough time to read a contract which contains 30 pages. They just trust to their money lender in Singapore that he will tell them all they should know. However, according to the last regulations, money lenders don’t have the right to harass or threaten their clients if they don’t pay them.
Find not only the best interesting rate but the best terms and conditions.
Licensed money lender will offer you a bigger interest rate compared to the banks.
This is matter-of-course because legal money lenders give smaller amounts for shorter periods. In addition, time for approval is really short and almost everyone can get a loan in Singapore. The price of getting a fast loan is the bigger rate. Have in mind that if a money lender wants to give you money for really low-interest rate, probably there is something wrong with that offer. That’s why you should be really careful with interest rates.
Imagine that you are looking for new boots. You will check not only the price but if they have a warranty and the quality of the material. Getting a loan is almost the same. Don’t make a mistake to trust the adverts. Advertising aims to target your attention and usually information is misleading. Booking an appointment for a consultation with the moneylender is what you can do for credible information. Another great choice is to check some online directories for reviews and to compare different money lenders. We know that trusting internet is not the wisest decision but the combination of good online reviews and credible information is what you need.
Have in mind, that if you sign a contract, you should have one copy for you only. In addition, every time you repay you should receive a document with your names and the amount. Paying attention to little things will secure your financial choices. Having a loan in Singapore from a money lender should be a responsible decision.