A licensed money lender in Singapore is one who is registered under the ministry of law. He/she is allowed to give loans to Singapore citizens. The licensed lender’s operations are regulated by the government. This makes them secure, and many people prefer to borrow from them.
There are many advantages to dealing with a licensed lender. Below are three main reasons why you should only borrow from a lender.
Licensed money lenders are dependable. The body which licenses them or the government requires that they have a track of transactions with their customers (the borrowers). In that regard, they all have forms, either hard copy or soft copy. The borrower fills in their details, and signs, and the lender also sign it as a sort of agreement.
Licensed money lenders in Singapore are professional. They will slowly take you through the whole process of the loan application. The process begins with filling out a form. They will be willing to help whenever you need help or clarify the terms and conditions stipulated in the form. They will not hurry you to finish up and sign the forms, without reading and understanding the terms. They are not like the unscrupulous lenders who make you sign fast so that you make not discover some terms which are unfavorable to you.
After filling out the form it does not take long before you get the money. In fact, the number of days that you have to wait is stated. Lastly, when it comes to repayment of the loan, the installments are well-stated, and the interest rate is clearly defined. The whole process is a smooth flow.
The most fearful thing about taking a loan is the harassment you receive if you fail to pay the loan. Some unlicensed lenders are insensitive and inconsiderate to their customers. If you fail to pay them their money, they take it from you forcefully. They take your assets and sell them without an agreement.
To avoid such embarrassment and pain, always ensure that you take your loans from a licensed money lender in Singapore. Because the government of Singapore has laid down laws to cover you as the borrower from such inhuman acts. The licensed money lender can’t dare do the borrower injustice because they would have started a losing battle.
Reasonable Rates and Fees
Licensed money lenders have reasonable rates and fees simply because they are regulated by the licensing body. By saying reasonable, I mean they do not over or undercharge their rates, basically, their rates have a small variation from those of the banks.
If you find a money lender who is charging very low interest than what is being offered by the rest, don’t be quick to take the loan. First, investigate if they are genuine because they might be involved in shady business. Giving low-interest rates might be a way of attracting people. If they are involved in a shady business, you will also be affected negatively once they get exposed.