It’s almost not possible to live without borrowing from time to time. The best solution to getting a peaceful debt is in using a certified moneylender. For instance in Singapore, loan sharks are everywhere. Luckily, the difference between unlicensed and licensed lenders is rather clear.
Licensed moneylenders are ruled by law and they always stick to the contract stipulations. Loan sharks, in contrast, operate illegally and will treat you as they wish. Therefore it’s important that you find a licensed moneylender always and make sure you sign a loan contract. Here are some important that will help you locate the best-licensed moneylender.
Verify That The Moneylender Is Registered With The Singapore Ministry Of Law
When you decide on a given money lender, do confirm whether they are registered with the Singapore law ministry’s website. All legal moneylenders in Singapore must be listed on the moneylender Registry. In so doing it’s easy for the lender activities to be monitored by the ministry thus ensuring they follow the set regulations and rules. Any moneylender that goes against these laws definitely loses their license. Meaning that only honest, serious, and law-abiding money lenders will retain their registration standing over the years.
Do Background Search For The Lender
It is essential for you to do background checks to confirm the lender’s information. Luckily with the current technological advancements, this won’t be hard to do. Many certified moneylenders have websites which can be used to help you get more information about them prior to making an appointment. Then again, there are individual websites as well that conduct a direct review of money lenders in Singapore.
The Moneylender Must Have A Physical Office
Licensed moneylenders must have a physical office that will conform to what they have indicated online. Loan sharks, however, will act as if they operate fully online. A genuine moneylender has to maintain an office and a sizeable number of staff.
Once you get the entire information online, then follow up with a call and at last attempt to go to their office. Even when you are signing the agreement ensure that it’s done only at the moneylender’s office.
Examine The Sort Of Fees Charged
Singaporean licensed moneylenders are permitted by law to only charge 3 types of fees excluding the interest. It’s important for borrowers to be aware of what to expect. Soon after you pay these 3 levies don’t anticipate hidden charges to arise. These fees include:
- Primary service charge. The lender charges this fee to assist processing your personal loan. It must not be over 10% of total loan cost
- Late repayment fees that are paid when the loan defaults. A lender needs to be ready for you to sign an agreement
- Legal cost charged only when there’s a court case
The Interest Charged Shouldn’t Be Extremely High And Varying
Licensed moneylenders, in contrast, abide by the interest rates depending on the rates in the market. This offers the borrowers some serenity since the rates of interest will not be different at any time. Also, do remember that the Singaporean registrar of money lenders clearly states what the interest rates charged should be for all the licensed lenders. Provided that the money lender you choose is registered and they use that rate or else their license will be revoked. When you choose to work with a loan shark make certain that the rates will change whenever.
Remember that the loan agreement is the only document that binds you and the lender. Don’t under any conditions agree to sign any blank or an incomplete document. The agreement must be done by a lawyer and should include all the things you talked about with your lender.
The personal loan period, interest rates, as well as all the other fees, need to be indicated clearly in the agreement. Make sure you understand all things written in the agreement before you add your signature. The agreement has to be signed by both of you. Make sure you remain with a copy of the agreement.
Loan sharks, in contrast, will not be firm on a contract because it’s a drawback for them. Also, don’t let the lender keep some of your personal papers like your identity card.
Licensed Lenders Should Not Engage In Telemarketing Or Send SMS
When you meet a moneylender who sends you spam SMS as well as does telemarketing, then simply drops that deal. Such lenders are not registered in addition to them obviously not sticking to the guidelines issued by the money lender Registrar. The regulations strictly forbid approved money lenders from promoting their services via SMS. This is because of the reality that many prospective customers have been deceived by swindlers as well as loan sharks through fake SMS.
Be Cautious When Getting A Loan
Most licensed moneylenders in Singapore are aware that personal loans area legal obligation and for that reason always carry out an upfront due diligence. Things that concern with your monthly wages, loan repayment plan, as well as outstanding financial obligations, need to be looked into. On the other hand, loan sharks won’t mind if you can repay the loan comfortably and yet be able to lead a serene life. For instance, when you have a job a loan shark may not mind even though you end up using all your income to settle the loan.
Every time you have an urgent need for funds, always think twice prior to approaching a money lender. Also, check whether that lender is approved or just a regular loan shark. In following the above-mentioned distinctiveness of legal money lenders, being able to identify one will be rather easy for you.
First impressions also last, thus a licensed lender always exercises excellent customer service skills and are familiar with the respectful and polite language. Licensed moneylenders are stable and so cannot deceive you or even consider unscrupulously slashing off some of your loans. Additionally, your rights are fully protected since the licensed money lenders are stringently working under the set law.