Many business owners or early entrepreneurs wish to take their next big step and expand their opportunity size. Such an attempt requires you to have deeper pockets, enabling you to invest and get things started. This is where financial institutions step in.
Granting you a dedicated sum of money, a licensed money lender Singaporeresolves your financial blockers with ease. This can be of great help when it comes to days when you are short on money and have specific commitments to honor. While these come with a responsibility to repay gradually, they often fulfill your current needs for immediate finances!
Before diving into the steps for identifying a licensed money lender in Singapore, let us first understand who is a licensed moneylender.
Who is a Licensed Moneylender, and How to Identify One?
A licensed moneylender is a financial group that officially lends money to people and tends to follow the Ministry of Law in Singapore. These lending services support individuals and established businesses to get going with their work without any hassles.
The repayment of the lending money is likely to include an additional amount of overhead funds – the interest. This is calculated based on the sum of money granted, the time period of the loan, and the pre-decided rate.
Reasoning to the tighter guidelines and rules implemented by the official authorities, the number of licensed moneylenders in Singaporehas witnessed a significant dip. It is due to the unwarranted lenders that carry a malicious intention to steal, you must be wise enough while choosing a lender that promises to help you.
When you are on your search for moneylenders, there are several aspects that you must be mindful of. Here are some of the most common things to keep in mind while identifying a licensed moneylender.
Licensed moneylenders explain loan terms in detail
All the various money lenders in Singapore are highly obliged, under the law, to explain the loan terms to the borrower in an understandable way.
They must always stand by and answer your questions in great detail. While being a licensed moneylender, they are required to inform the borrower about the rates charged, loan duration, and payment perspectives in advance.
The lender’s supreme duty is to ensure that all the necessary details and specifications are well-conveyed before the loan contract gets signed. Make sure that the moneylender you deal with is genuinely confident and knowledgeable about the loan terms and related topics.
If not so, then there is a high possibility of the person being a scammer. You must ensure that you consider these things before sharing important details with your money lender.
Licensed lenders charge only three fees specifically
Licensed moneylenders in Singapore are well known for their detailed explanation and sophistication with borrowers. They are mainly required to charge only the following three different types of fees, which majorly does not include the interest rate:
- If any loan default occurs, a borrower is always charged a late payment fee of not more than $60 per month. Along with it, an interest rate is also charged, not greater than 4% per month, on the outstanding loan amount. The most necessary information to be kept in mind is that the late fees aren’t supposed to be taken as regular interest.
- The second is the up-front fees. This is highly required to be not more than 10% of the specific loan payment.
- Lastly, there are legal fees that can be charged due to some possible court challenges.
If any money lender charges fees apart from the ones mentioned above, they might be loan sharks and are likely to be betraying you. An experienced licensed money lender never does that, so make sure you choose the right one for your loan issues.
Licensed lenders use legal communication modes
Moneylenders in Singapore are professional and are required to communicate only through legal platforms, which primarily include their websites. They are significantly restricted from advertising or socializing via SMS and telemarketing services.
If your moneylender tends to communicate through calling or messaging, never accept it. In Singapore, all the money lenders are permitted to advertise and communicate with clients through distinct business directories.
Additionally, they can also communicate through websites associated with the moneylenders and advertisements placed within the moneylender’s business premises. By keeping a check on these small details, you can quickly identify a trustworthy licensed moneylender in Singapore.
Licensed lenders accommodate offices and suggest appointments
Moneylenders in Singapore have recognizable offices, they set up appointments and eventually offer different loans. Singapore law obliges each money lender to accommodate an office registered on the Ministry of Law’s website.
A licensed money lender Singapore is widely renowned for carrying out their business, especially in their own registered offices.
Most importantly, keep in mind to never trust a money lender without meeting them in person. There are various scammers present in the online globe, all set to exploit your accounts. Book a meet-up with them and after fully identifying the money lender as a licensed one, share your necessary details further with them.
Licensed moneylenders take time
They communicate with their clients having extensive sophistication involving a large amount of paperwork while issuing loans. Legal money lenders tend to guide borrowers through the entire application process in a comprehensible and convenient way.
Unlike the illegal lenders, which speed up processes, licensed money lenders in Singapore help borrowers in the registration of an account in immense detail. While identifying them, ensure that your moneylender doesn’t skip appointments on official premises along with doing the essential documentations.
Financial dealings can go out of hand if you relax in keeping your vigilance intact. Borrowing money from unreliable lenders can cause you more trouble, ultimately taking your hard-earned money away from you in the long run. Singapore maintains a central directory for all the recognized moneylenders that abide by the Ministry of Law.
OT Credit is here to help you with all your financial requirements. With easy repayment options and early loan approvals— you can get started with your journey in just no time. Reach out to us here, and our dedicated professionals will be happy to help!