No matter where you are, money problems will often follow you. Any person would wonder how to find a reliable licensed moneylender in Singapore. It’s a normal response and an acceptable approach for needing extra funds.
For instance, you presumed the upcoming salary could pay the monthly bills. But due to some existing credit, you may need your wage to be more. Or your car broke down, and you spent the cash you’ve set aside for the rent.
Businesses with Reliable Licensed Moneylenders in Singapore
Usually, banks or credit unions are viable sources for borrowing money in the country. But what if these monetary businesses can’t provide the funds you desire? It’s time to find a reliable licensed moneylender in Singapore for dilemmas like these.
A registered moneylender can offer hassle-free and quick access to your desired money. But before you apply for a personal loan from these professionals, choosing a reliable lender is crucial.
This article will guide you on the complete and easy-to-follow steps of finding a trustworthy licensed moneylender in the country.
Why It’s Essential to Choose a Licensed Moneylender in Singapore
The overall economy of Singapore is good, yet the people living and working in the country are still facing the challenges of higher taxes and much higher inflation rates. Today, many people in Singapore search for these individuals or businesses to provide variable financial products to supply funds to those who genuinely need them.
Licensed moneylenders in Singapore have the legal authorisation to lend funds and furnish goods or services to their borrowers. These professionals passed different tests and qualifications to earn their titles, establish their businesses, and, ultimately, their licences.
Choosing a trustworthy licensed moneylender is essential because people who require money can take out a loan without worrying about an extensively strict set of qualifications or requirements. The licensed moneylender has standard operating procedures when managing their moneylending agency. They have policies, eligibility criteria, and conditions that borrowers must fulfil, like high credit scores and stable income.
A lending business primarily grants personal or unsecured loans to its borrowers. Thus, the transaction is more accessible without the requirement of any collateral.
Choosing a legal moneylender gives you various advantages over borrowing from an unlicensed lender.
Benefits from Borrowing from Licensed Moneylender in Singapore
As a borrower living in Singapore, you are under the legal obligation and protection of the government’s laws and regulations. As a result, as the country’s laws bind a legal moneylender, you will experience first-hand the advantages of obtaining their services. Here’s the list of reasons why it’s advantageous to choose a registered moneylender.
Monetary Authority of Singapore
The Monetary Authority of Singapore (MAS) is Singapore’s central bank responsible for setting rules and regulations for registered moneylenders and every individual and entity authorised and certified in the financing industry.
Among the regulations and laws set by MAS on moneylenders is the maximum interest rate of 4% per month they’re allowed to charge to borrowers. Additionally, they can only charge the principal loan’s 10% as an upfront fee and mustn’t exceed the limit.
These loan cappings aim to help borrowers and certified moneylenders solve the issues regarding overborrowing and debt cycles from extensively high-interest rates and fees.
Regarding debt collection, MAS prohibits licensed moneylenders from using unethical practices. They cannot collect the debt using abusive or threatening language. They must never harass borrowers in any possible when.
Any licensed moneylender guilty of such acts will have their license revoked and punished accordingly.
Loan contract, terms, and agreement disclosure
An accredited lender in the country is legally responsible for assisting borrowers, not only through financial assistance. In truth, these entities or individuals must provide you with full disclosure details regarding the loan contract, terms, and agreement.
Even if you are a foreigner or ex-pat in Singapore and eligible for a loan, they have to communicate with you in the language you’re most comfortable with because borrowers have to understand every piece of information within the loan contract, including the capping on rates, charges, and repayment schedules.
If an accredited moneylender needs to clarify or elaborate on loan terms and conditions, you can call and report them to the Registry of Moneylenders.
You are legally protected.
Your transaction with a licensed moneylender in Singapore immediately means you’ll acquire more comprehensive protection. Also, expect better security against abusive and manipulative ah longs, unlicensed moneylenders. Suppose you involve yourself with an illegal lender who operates outside the legislation of the Ministry of Law. In that case, it’ll be hard for you to seek assistance if these entities mistreat or engage in unlawful practices like intimidation or harassment.
Furthermore, suppose a legal moneylender does show undesirable behaviour towards you or makes some approach that goes against the Moneylenders Act and Rules. In that case, you have the legal right to file a report with the relevant authorities, such as The Registry and Singapore Police Force.
These relevant authorities will assist you through the investigation, protect your identity, and ensure your safety from threats or harassment caused by manipulative lenders in the country. You can call the Police Force at ‘999’, or the X-Ah Long hotline at 1800-924-5664. Or directly contact the Registry of Moneylenders at 1800-2255-529.
How to Find a Reliable Licensed Moneylender in Singapore?
You may feel uncertain about choosing which certified moneylender to contact for a personal loan. Given the swarm of illegal lenders acting like legal moneylenders, it’s understandable. It is essential to find a reliable certified moneylender in Singapore, and here are a few tips you can do to get hold of them:
Check the Registry of Moneylenders
The Registry of Moneylenders has a comprehensive list of every legitimate moneylender in the country. To access the list, visit the Ministry of Law’s official website and search for the Registry of Moneylenders.
The page leading to the list provides a quick yet important note that borrowers are encouraged to read to be better aware of longs or illegal moneylenders. A highlighted link leads to the list of all licensed moneylenders in Singapore.
The list includes the name of the certified moneylender. In addition, you’ll acquire the moneylending business name, address, contact number, and license number.
Research the Moneylenders in the List
Even when you’re in an urgent financial situation, taking some time to do proper research about the moneylenders within the list is a wise action. By pouring a few hours on each legal moneylender nearest your location, you’ll get information regarding their customer services and whether they are reliable and trustworthy.
Researching also allows you to compare your options of which authorised moneylender can provide you with the needed assistance.
Review the Indicated Interest Rates and Fees
All licensed moneylenders in Singapore adhere to the Moneylenders Act and Rules. Thus, if you review the interest rates and fees they’ll charge their borrowers, it must be per the Act.
It means the interest rate is capped at 4% monthly and mustn’t exceed. There’s a fee associated with the upfront fee, which is 10% of the principal loan’s amount and should not exceed the designated value.
If the certified moneylender you have chosen grants the indicated loan capping, you will acquire a fair deal and better assistance.
Review the Loan Terms and Check the Contract Details
A loan term includes the repayment schedule for the personal loan you applied for. In addition, the penalties for late payments or repayments are also within the loan terms. Be 100% sure that you understand the loan terms.
You can also review and check if you can repay the loan per the agreed terms.
In addition, before going ahead and signing the loan contract, review it as carefully as possible. Make sure you understand every term and condition. If you still need some clauses or are unsure, ask the moneylender to explain them better.
Stay Away from Unlicensed Moneylenders
Another way to find a trustworthy licensed moneylender in Singapore is by consciously staying away from unlicensed lenders.
Illegal moneylenders in the country have tactics to lure in their victims by promising lower interest rates and fees. But these are all misinformation to trick you and cause you trouble.
Thus, when a lender initiates and solicits a loan from you, promises a much lower interest rate and charges, or contacts you via your number, it’s best to ignore their advances and reach the authorities for assistance.
Advantages of Reliable Licensed Moneylender in Singapore
Finding a reliable, legitimate moneylender in the country proffers you many advantages. For instance, you are protected from scams as these entities or individuals must abide by the government’s laws and regulations, particularly the Moneylenders Act.
The rates and charges suit you as the relevant authorities, such as MAS and the Ministry of Law, regulate and monitor these. You’re encouraged to pay back what you can afford, per the repayment terms and conditions, and retain legal protection. Most importantly, these licensed moneylenders in Singapore can proffer different types of loans and aren’t too stern with requirements. Thus, it’s easier to take out a loan from them legally.
When you choose a registered moneylender, you are confident you’ll receive fair treatment and financial assistance according to your needs. Thus, ultimately giving you peace of mind and feeling worry-free.