Before taking out a personal loan issued by licensed moneylenders, it is important that you always confirm the legality of their business licenses. The Singapore Law Ministry always does monthly updates on their website on all the validity of licenses that have currently been issued to money lenders in Singapore. You should know who you are dealing with before taking up a personal loan.

There have been many cases of unlicensed moneylenders pretend to be licensed moneylenders. Also, do remember to carry out thorough research and only to borrow from legal moneylenders in Singapore. In so doing you will be saving yourself lots of trouble. There are a number of ways that you can use in finding out the interest rates that moneylenders are offering their borrowers. And above all be careful you don’t fall victim to the unlicensed lenders.

Here are some ways that you may use to help you differentiate licensed and unlicensed money lenders.

Pretend To Entirely Work Online

Licensed moneylenders will not pretend to wholly work online. Since they conform to the set rule they have a physical office that fits the details they have indicated online. Unlicensed lenders, however, will act as if they operate online.

A genuine moneylender will maintain an office and some staff. After you have information from a lender it is recommended that you follow up with a call and also go to their office. Also as you are signing the loan agreement make sure that it’s done only at the money lender’s office

Ask For Your Personal Information

Legal moneylenders in Singapore will not remain with your NRIC and any other private documents like your passport, driving license, work permit, ATM card or even employment pass.

There have been instances where unlicensed lenders who were offering lower rates of interest and in return their borrowers were expected to borrow them their password and ATM card for an entire week. It is possible that these lenders might use the ATM card for unlawful money lending actions. Assisting illegal lenders is a very serious offence.

Charge Extremely High And Varying Interest

Licensed moneylenders abide by the interest rates depending on the market rates. This ensures that the borrowers have some serenity because the rates of interest won’t be different at any time.

Also, keep in mind that the Singaporean Registrar of money lenders clearly states what the interest rates charged ought to be for all the certified money lenders. Provided that the lender you pick is registered and that they use the set rate, they will not risk losing their license should they go against the rule. When you choose to work with an unlicensed lender be sure that their rates will change at any time.

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.

Signing On Blank Paper

Licensed Moneylenders in Singapore will not ask you to sign a blank Contract. Borrowers need to refer to the borrowing guide prior to taking up a personal loan from approved moneylenders. Normally lenders don’t request their borrowers to disclose their secret passwords. (ATM password, Singpass password, Bank account number etc)

Remember that a loan agreement is the only document binding you and the money lender. Don’t under any conditions agree to sign any blank or even an incomplete document. The agreement needs to be done by a lawyer and must include all the things you talked about with your money lender.

The personal loan period, interest rates, as well as all the other fees, need to be indicated clearly in the agreement. Ensure you understand all the things written in the agreement before you sign it. The agreement has to be signed by both of you. Make sure you retain with a copy of the agreement.

Operating Undercover

When you are working with a given money lender, confirm whether they are registered with the Singaporean law ministry’s website. All legal moneylenders in Singapore must be listed on the moneylender Registry.

In so doing it is easy for the moneylender 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.

Unlicensed lenders will use other registered lenders number and name to attract clients. And in reality, they do not have a physical office where they run their operations. Thus be cautious when dealing with a lender who doesn’t have an office even if the business number and name appear to be registered under the Singaporean Law Ministry.

Solicit For Loans

Certified moneylenders in Singapore do not send SMS or even call their borrowers repeatedly. They also do not persuade borrowers to take up loans with them. The legal money lenders will never pressure you into taking up a personal loan from them. In addition, these lenders do not move the loan money over to a borrower’s bank account without even seeing the necessary paper for loan processing.

Engage In Telemarketing Or Send SMS

When you come across a money lender who constantly sends you spam SMS as well as does telemarketing, then you need to simply drop that deal with them. Such lenders are not registered and in addition, they obviously are not sticking to the set money lending guidelines issued by the money lender Registrar.

The stated regulations strictly forbid licensed money lenders from promoting any of their financial services via SMS or email. This is because of the actuality that many prospective customers have been deceived through fake SMS from unlicensed moneylenders.

Conclusion

It is important that you always confirm the legality of their business licenses before you take out a personal loan offered by money lenders. There have been some cases of unlicensed moneylenders pretending to be licensed moneylenders. Also, remember to carry out a thorough research and only to borrow from legal moneylenders.