License moneylenders in Singapore are the saviours of those with bad credit or lack of collateral, things that prevent them from getting loans from the banks. Licensed moneylenders are also handy when you need urgent cash for an emergency, which they can give to in an hour or less.
Despite all the goodness of licensed moneylenders, there is still the problem of loan sharks and unlicensed moneylenders. Though the government has done its best to crack down on illegal moneylenders/moneylending activity, they are still open for business. Also, people still go to them for loans and end up in serious financial trouble. The government has done its part and put out information regarding licensed and unlicensed moneylenders. It is now up to you to protect your interests.
There are several ways to find licensed moneylenders. One of those ways is checking the Government Directory for licensed moneylenders. Every licensed moneylender in Singapore is on that list, and you can make your pick from there.
Another way to figure out if a moneylender is licensed is by checking their accreditation with the Moneylenders Association of Singapore. Every legal moneylender in Singapore is registered with them.
A third way to find legal moneylenders is to read moneylender reviews.
Importance Of Moneylender Reviews In Singapore
To get moneylender reviews in Singapore, you can visit websites for moneylender reviews. These platforms are a good place to meet other borrowers and learn from their experiences with moneylenders.
Moneylender reviews are important because they guide you in your decision of choosing a moneylender. Poor reviews mean that you may have bad luck with that moneylender. Good reviews mean that you could be safe with a certain moneylender.
Moneylender reviews are also important because you have a wide pool to choose from. Licensed moneylenders differ in their operations. Some will not give you a loan if you have bad credit. Some will insist on a background check before assessing your application. And there are others who will give you a loan, regardless of your credit score. They will even create a repayment plan that will suit your income and ability to pay back that loan. You can get all this knowledge from moneylender reviews.
By going through moneylender reviews, you can learn which moneylenders are licensed or not. With the knowledge gained from these platforms, you can confidently go and get your own loan. Then you can come back to share your experience with others by writing a review.
The Importance Of A Moneylender’s License
Though it is important to assess moneylenders based on their reviews, it equally important to make sure that they are legal. You can do this by checking their license.
First of all, you need to check the license number of the moneylender you are considering. The Registry of Moneylenders in Singapore contains the list of licensed moneylenders in the nation, as well as their license numbers. If the license number does not match or is not on the list, then it is not valid. The Registry updates the list of moneylenders every month: if a license number is absent on that list, do not approach that moneylender.
Legal moneylenders in Singapore go through a rigorous process to obtain a license. Disobeying the rules and regulations set down by the Ministry of Law attracts heavy sanctions for moneylenders. This means that no moneylending company can operate without a license. The license is what gives that business credibility.
If you are still uncertain after meeting a moneylender, ask to see their moneylender’s license. The number on that license should match the one on the registration certificate. The name on the license should also be the same as that on the registration certificate.
Read The Terms And Conditions
After reading moneylender reviews and checking their license, you should look and study the terms and conditions.
While there are some universal terms that the Ministry of Law has set out for all moneylenders to follow, there are others that the moneylender has for giving you a loan. For instance, the Ministry of Law insists that:
- The interest on unsecured loans should be capped at 4% per month
- Moneylenders can only charge S$60 to every late repayment
- The only a moneylender should charge you is 10% of the principal loan amount. You pay this fee once you get the loan
The moneylender will have their own terms and conditions, all of which will be explained to you till you understand what they entail. You will also get your copy of the terms and conditions.
Compare Moneylender Reviews; Evaluate And Make A Decision
The availability of and ease of access to moneylender reviews gives you many options to choose from. As you try to make a decision, make sure that you check the information you get from the actual moneylender’s website.
As you compare moneylenders, do some research on their terms and conditions. Find out what their interest rates are. Ask about late repayment penalties. Contact the loan officers of the moneylender companies through their phone numbers or their websites.
Check the terms the loan officers offer you against what they have put on their website. Go through several moneylender reviews in Singapore to get more insight into what they do and the services they offer.
As stated earlier, the Singapore government has capped the interest that moneylenders can charge you at 4% per month. Confirm with the loan officers you have contacted that this is the interest rate they are charging. The Moneylenders Credit Bureau is the governing body of all licensed moneylenders in Singapore. Notify them if you have noticed any moneylenders charging an interest rate higher than 4%.
Moneylender reviews are important in guiding you to licensed moneylenders in Singapore. Using the information from these platforms, you can check to make sure that the moneylenders are actually legitimate businesses. Look them up in the Registry of licensed moneylenders in Singapore, and talk to their loan officers about their terms and interest rates. After you have successfully chosen a moneylender and acquired your loan, leave a review on a moneylender in Singapore review site. This will aid others in choosing licensed moneylenders to get loans.