In 2022, with over 150 licensed money lenders in Singapore, the moneylending scene was redefined. If you’re borrowing money in Singapore, it isn’t the same as engaging in a risky venture; it’s more like venturing on a regulated expedition with a safety harness. Thus, the Singapore money lenders licence comes along and guarantees just this.
Find out how borrowers like you will score big with a licensed moneylender. It’s the expedition you should take not to be an unwary victim but an informed participant in a well-structured system.
Comprehending Singapore Money Lenders Licence
The primary cornerstone of this system is the Moneylender’s License, a stringent certification issued by Singapore’s Ministry of Law that is only for businesses with a Unique Entity Number (UEN). Not every Tom, Dick, or Harry can obtain it just because they want to do business as moneylenders. Not how it goes, and Singapore’s stern with such narratives.
As of late, the Ministry of Law necessitates every eager moneylender to pass a written test verifying their comprehension of the Moneylenders Act and Rules.
A Guardian in Disguise: The Safety that Comes with Licensed Money Lenders
Singapore’s licensed moneylenders are like your protective older siblings in the financial world. Yes, you read that right. They’re the real thing in helping you borrow funds through personal loans and other financial products when you’re in need.
As they abide by the Ministry of Law’s regulations, you will feel more confident that every dealing is guaranteed and treated equitably. Thanks to these licensed lenders’ presence and eager assistance by Singapore’s relevant authorities and borrowers, loan-shark-related harassment cases have decreased dramatically from 11,776 in 2010 to 3,235 in 2019.
Clearing Up the Murk: Dispelling Misconceptions About Money Lenders
Contrary to the unregulated loan sharks’ sly tactics to reel you in, licensed moneylenders aren’t in the business of deceiving borrowers like you. You can be sure that money lenders who’ve earned their licences are no ‘Ah Longs’ or loan sharks and are law-abiding entities aimed at maintaining a professional, transparent lending service.
Advantages You Get from Singapore Money Lenders Licence
Who would have thought that getting a personal loan and other loan products from someone with a Singapore money lenders licence would deliver more than you thought? Yes, that’s right. You can acquire access to some nifty advantages once you get in touch with these legal lenders.
Here are the advantages you can reap from a business with a money lender’s licence:
The Reinforcement of Regulation
Singapore’s licensed money lenders are subjected to uncompromising, stern regulations under the Moneylenders Act. It’s an umbrella that efficiently shields you from unregulated, high-risk lending.
In truth, many Singaporean and non-Singaporean borrowers prefer getting loan transactions with licensed lenders due to the security of the Act’s restrictions.
Transparent Transactions
Licensed lenders play the scenario differently in an industry where every other dealing can feel like a guessing game. They are legally obligated to clarify all terms and conditions in the language you understand best.
The truth is that many borrowers in Singapore shared their appreciation for the legal lenders’ transparent dealings.
Control on Interest Rates
Legal lenders in Singapore have the permission to charge only up to 4% interest per month, a cap established in October 2015. It’s a move that efficiently reduces your financial strain. Many borrowers like yourself have expressed their relief with the controlled interest rate.
Accountability for Actions
Licensed ones cannot get away with unjust lending procedures, unlike loan sharks. So, if the lender you’ve chosen acts suspiciously, you can call the Registry at 1800-2255-529 and the anti-scam helpline at 1800-722-6688.
Once a lender’s found guilty, they will face prison time and pay up with penalties of as much as $300,000 for violating the Moneylenders Act. It showcases the system’s diligence in making sure they play fair. Its accountability assists highly in maintaining high standards and trust in the Singapore money lending industry.
Workable Repayment Methods
Don’t get uptight about stiff repayments that feel like trying to squeeze into your old jeans. With a Singapore money lenders licence, as a borrower, you can enjoy flexible repayment plans tailored to your financial situation.
Its workability and flexibility are a boon, specifically for borrowers who might encounter unanticipated financial ordeals or those juggling numerous financial duties.
Fast Approval Process
To be honest, you do agree that time is a luxury. Speeding up loan approvals to help you cross the financial finish line quicker.
The approval process is smooth and efficient when you borrow funds from licensed lenders. In truth, it takes no more than a day or two. The speed is a godsend, significantly for those requiring urgent cash.
Confidentiality Agreement
Are you anxious about your financial laundry airing in the open?
Don’t worry anymore, as the Singapore money lenders licence confirms that they’re bound by the laws to keep your personal information confidential. Without your consent, they cannot whisper your monetary details to a third party.
That’s like a financial version of the ‘bro code,’ right?
Ethical Debt Collection Practices
It’s time to say farewell to the torments of burly debt collectors pounding at your door. The Singapore money lenders licence guarantees that they must stick to the ethical debt collection methods outlined in the Credit Collection Association of Singapore’s (CCAS) code of conduct and ethics.
It’s the code that prohibits any form of harassment, making sure your experience from being a borrower to a repayer is as smooth as the Changi Airport Tarmac.
Customized Loan Packages
Everyone’s financial needs are as unique as their fingerprints. Recognizing this, the Singapore money lenders licence is an affirmation to offer customized loan packages.
So, you can be sure that you get the right loan that fits your financial profile like a bespoke suit, assisting you in managing your repayments constructively.
Credit Scores Aren’t the End-All
Do you have a less-than-ideal credit score?
No worries, the Singapore money lender licence is your reliable ticket to gaining a considerate lender for your situation and isn’t only your credit score during the loan approval process.
They assess your ability to repay based on your current monetary status and income, granting a lifeline for those struggling with poor credit history.
Understanding Over Indebtedness
It’s always wise not to bite off more than you can chew. Licensed money lenders assess your financial status meticulously before approving the loan to prevent over-indebtedness.
You can now breathe easily, knowing you’re not falling into a debt trap.
The Power of Financial Counselling
Financial counseling isn’t only for Wall Street whizzes. In the lending heartland, many licensed lenders are willing to present you with essential monetary advice.
The counseling empowers you and other borrowers, helping you make conscious decisions and manage your financial accountabilities more effectively.
No Hidden Costs or Shocking Fees
Say hello to a world with no hidden costs or shocking fees. The Singapore money lenders’ licenses must disclose all costs upfront.
The transparency highlights that you’ll never have to deal with those heart-stopping, surprising charges.
Singaporean Laws for Singapore’s Borrowers
Equipped with your newfound knowledge of the benefits of borrowing from licensed money lenders, you’re ready to enter the legal maze successfully. No worries, here are the laws you must know as a borrower in Singapore.
- The Moneylenders Act
- The Moneylenders Rules
- The Personal Data Protection Act
- The Credit Collection Association of Singapore’s Code of Conduct
In the core of this legal labyrinth, you’ll find companies like Accreit. Accredit embodies the benefits you’ve recently ventured to as a licensed money lender, complying strictly with all laws and regulations and proving itself a trusted ally for borrowers.
And remember, before borrowing, always check the Registry of Moneylenders to verify the lender’s licence number. It’s your one-stop source for identifying the good guys in the moneylending industry. And yes, you’ll find Accredit there.
Charming Your Way To Urgent Funds with Singapore Money Lenders
And now you have your tour of the benefits of borrowing from those with a Singapore money lender licence. In a world teeming with monetary trials, these advantages serve as your financial sat-nav, guiding you towards ethical, transparent, and regulated lending approaches.
These licensed money lenders are no longer shadowy figures lurking in the financial corners. These legal lenders have emerged as the heroes of your monetary narrative – facilitating loans with flexibility, confidentiality, and accountability, like Accredit. From the moment you take the loan to when you make your last repayment, they’re standing by you, ensuring your trip is as comfortable as a snooze in a first-class cabin.
Thus, the next time you require a reassuring financial boost, remember you can use your charm waiting on you in the form of Singapore’s licensed money lenders. They have the licence to lend, like Accredit, and are your trusted partner for monetary travel.
