A good number of Singaporeans often find themselves having to borrow some money in some circumstances in their lives – funding for a car or a home, education loan or maybe money for medical emergencies. It is in such circumstances that a moneylender personal loan comes in handy. However, some people are not able to access loan facilities because of their poor credit score.
There are times when it happens people unable to get personal loans through the legal money lending institutions. These individuals are often in desperate needs raise money and because of this, they end up borrowing from other sources. However, before you make up your mind to get a personal loan from the alternative sources of funding, there are a few types of loans you need to be cautious of to avoid getting yourself in even bigger debts than before.
Loan Sharks – Predatory Loaning
Loan sharks are usually referred to “Ah Long” in Singapore. These money lenders generally use deceptive, unfair, or fraudulent procedures to attract borrowers who desperately need cash. Loan sharks more often than not target individuals who are not qualified to access loans from legal sources available in Singapore, for example, banks, because of their bad credit score.
In their efforts to find ways for them to get connected with unsuspecting borrowers, they often advertise aggressively using ads displayed on public transport, as well as via online platforms. Loan sharks normally are friendly with you during your first meeting. And as soon as you have accepted a personal loan issued by them, they change their behaviour rather drastically.
From there on they may possibly start harassing you for repayments. Because loan shark business dealings are not regulated by law, they many times tend to charge exorbitant interests that only contribute to getting you into much bigger debt in the end. It is recommended that you do not engage yourself in any way with loan sharks loan services.
Guarantees Given On Loans Offered Online
These loan types are also referred to as bad credit loans or payday loans. These are normally issued to borrowers as a short-term loan and are very easy to borrow. This is the reason why they are very appealing to most Singaporeans. You need to watch out for any guarantees that give you a personal loan long before assessing your credit score, income, and other personal data are most likely a scam. Several of these online institutions are only trying to get access to some of your personal data for devious purposes. To help you identify which money lending companies are legal, you probably need to look into some of the following basic indicators:
- A brick and mortar store in addition to their online platform
- They have a physical address for their business
- There being a customer service line that works
The most recommended way to make sure that you are working with a legal company is for you to do a thorough research. This will help you find out more about the lender from trustworthy sources.
High Volume Of Unsolicited Contact
You will from time to time receive multiple emails and also phone calls from these moneylenders. Legal moneylenders will by no means resort to these attempts for them to look for potential customers as they don’t want to bother you for no reason. Therefore It is best that you ignore these email Spams or better yet report them to Singapore’s relevant authorities.
Phony “Legitimate” Moneylenders
The alleged “accredited” moneylenders operate as a legal party by use of the legal registration number given by the Singapore Monetary Authority (MAS). And yet they post advertisements by using the names of legal moneylender companies within. They usually will appear to you through the use of social media posts and also random emails.
It is advisable for you to validate the moneylender company information before you choose to take a loan from these moneylenders. This will help you determine if they are who they claim they are. You can use Moneylender Registrar’s Hotline or website to verify this. Oftentimes, the real companies are not even aware of the imposters who go around scamming potential borrowers using their business name.
Lenders Asking For Upfront Payments
These types of illegitimate lenders often demand that you pay an upfront loan request fee before they can offer you the loan money. They even go ahead to justify the need for the fee by claiming that it’s a compulsory processing charge for all their borrowers. At other times they may even classify the payments as collateral needed because of your bad rating. They will then require you to transfer the money to them using the online platform or they seek that you give them details of your bank account. All this they do promising to issue you with a loan once you comply. Once you make the transfer, the lender will run off with your money.
To come to you as no surprise they cut off any contact with you and even refuse to answer your calls or emails. Always remember this – legal Singaporean moneylenders will on no account ask that you pay anything fees before giving you the loan.
Some of these lenders may even start harassing you as soon as you have borrowed from them, while others may start their threats before you can even make paying the loan. Legal and reliable moneylenders will never pressurize you into making a transaction because it is a personal decision that you ultimately have to make.
Still, after you’ve made the personal loan, these illegal moneylenders will even start threatening you that they’ll take legal action against you for unpaid loans. They might even intimidate you by mentioning the names of your family whom they may possibly bring harm to, should you not make the repayment on time. These illegal moneylenders are generally very bold and always take advantage of causing fear t their borrowers by using these scare tactics. Such fear is what makes their borrowers vulnerable and very easy for them to prey on.