If you are recently going through tough financial troubles, the first step you need to do is to seek a personal loan moneylender in Singapore. However, you should not seek any moneylender that you find, but rather, a licensed moneylender.
There is a massive difference between licensed moneylenders and unlicensed moneylenders in Singapore. When most think about unlicensed money lending, they might think about loan sharks. It is important to note that licensed moneylenders operate very differently to loan sharks as the former are strictly regulated under the Moneylender’s Act in Singapore.
Here are a few tips to help you distinguish licensed moneylenders from unlicensed moneylenders.
1.Unreasonable and invasive requests
Unlicensed moneylenders may look towards unreasonable and invasive requests when they are discussing loan terms with a borrower. For instance, they might ask for your SingPass ID and password during a personal loan application, both of which are not a requirement for loan approval. They might also look to retain your personal information and documents, and even lead you to sign a blank contract.
Licensed moneylenders, on the other hand, will not do any of the above. They will not ask you to sign a one-sided contract that heavily favours them.
Licensed moneylenders will frequently take the time to carefully explain everything about your loan, such as the terms and the tenure. Should you have any questions or clarifications, they will look to clear up the confusion so that you can have a better understanding of the loan.
If a moneylender outright refuses to explain the loan or seeks to confuse you with technical and unnecessary jargon, you are most likely dealing with an unlicensed moneylender.
Unlicensed moneylenders may resort to rude and threatening behaviour when they are unable to get their way with the borrower. This is a huge red flag, and could potentially mean that you are dealing with a loan shark and not just an unlicensed moneylender.
One other red flag that you should watch out for include moneylenders granting loans without following the proper loan procedure.
4.Withholds part of the loan
Unlicensed moneylenders will often squeeze out as much money as possible from borrowers by withholding part of the loan. They may come up with an explanation on why they do this, while others may say that it is a fee for processing the loan. However, these are just excuses to squeeze out even more money from the borrower.
5.Check with the Registry of Moneylenders
Last but not least, if you face any doubt with a moneylender, you can look up the Registry of Moneylenders. If they are not registered, they are unlicensed moneylenders, and you should not deal with them.
There are many licensed moneylenders and debt consolidation companies in Singapore that are trustworthy, and that operate lawfully to give the best loans to borrowers. If you have followed the tips above and found out that you are talking to an unlicensed moneylender, you should walk away and not do any business with them.
There are plenty of other licensed moneylenders in Singapore offering reliable and low-interest loans. If you are looking for a moneylender in Toa Payoh, give our office a visit or a call.