In this article, we are going to talk about how to find the best-licensed moneylender in all of Singapore. Also, we will discuss the differences between legal and illegal lenders and how to avoid scams online.
What is a licensed moneylender?
These are either a person or a group of people making a corporation where they give out loans to people. Moneylenders have been there for a long time ago, and this is not a new concept. Moneylenders are considered to be an alternative to the bank when a person does not get a loan from the bank. They can try their luck by going to a licensed moneylender and asking them for a loan.
The licensed moneylenders do not focus on a person’s credit report, but they look at their income report. This means that their system of giving loans is very much different from that of a bank. They prefer to give loans to people at a rate of interest that is affordable easily. These moneylenders are also funded by someone then they can give out loans.
Some of the moneylenders in the market are supported by banks, while some are by individuals or groups. If you take a loan from the moneylender, which is supported by a bank, then it will be more costly. That is because banks charge more to these people, so they will take it from the borrower itself. While if you take a loan from that lender, which is funded by a private individual or group of people.
They will give you a loan at a low rate of interest than the other lender due to not so many changes. Moneylender are of two types one is licensed, and the other is illegal or loan sharks. Loan sharks are those who are on the hunt for people finding a loan, and they will trick them into taking a costly loan.
What does a licensed moneylender do in Singapore?
These licensed moneylenders have been approved by the Ministry of Law (MinLaw) to give out loans to people. This means that they are also a kind of company that is allowed by the law to give loans. They can give loans to Singapore citizens, permanent residents, or even foreigners and employment passes.
Licensed moneylenders are a good thing to borrow from when you need an urgent loan or money. Many people think that going to the bank is a faster and safer option to take a loan. This is not the case as it takes a long time for a bank to complete the registration and stamping. This will make your approval and also crediting of your loan amount much slower than usual.
So it is recommended that you go to a legal lender to get an instant loan. This is because they take around 5 minutes to complete the process and will give you the loan. You can choose from the best moneylender in Singapore who will give you the loan at a low rate of interest. If you need urgent cash, then you also might be thinking that is there 24 hours moneylender available. The answer is yes, as some moneylenders are open all the time to give out loans to people.
What are 24 hours licensed moneylenders?
There are no more 24-hour moneylenders in the market, and if you see one, then they might be fake. This is because the shops of these lenders are told to be closed at 11 pm. So it is a precaution that if you see a shop like this does not go inside to take a loan from them.
They might be a scam moneylender and are looking for a person from which they can make money. This is a very common case in Singapore, as many people have been attacked by these lenders. There are several organizations created that are looking after these moneylenders.
Those they find working in suspicious conditions are blacklisted and kept an eye on. You can take a loan from the licensed lender through their online portal. In that way, you might get your money fast and at any time that you want.
Personal loan Singapore money lender will take less time and interest rate to give this kind of loan. The borrower can take the loan and use it for whatever reason they wanted the money for. The only thing is that these borrowers cannot do something illegal. There is an illegal moneylender called loan sharks or Ah Long in Singapore. They are just like the licensed lender, but they will conduct their business through SMS or phone call.
How do differentiate between licensed and unlicensed moneylender?
Here are some of the differences between the legal and the illegal lender in Singapore.
- Terms and conditions of contract
A licensed moneylender will tell and explain you the terms and condition of the loan personally to you. An illegal moneylender will try to explain and give you a loan through SMS or a phone call.
- Interest rate and late repayment fee
The licensed money lender can charge a 4% rate of interest and 10% of the loan amount as administrative fees. While the illegal lender takes way more than these fees.
- Advertising channels
Licensed can advertise either on the website they own or on posters or articles near their office only. While the illegal lender will try to advertise their loan through email ID, phone call, and even SMS message.
- The loan amount you can borrow
There is a minimum amount of $3000, which you can take, and the maximum is six times your monthly income. The illegal moneylender does not even have a minimum, but they give high amount loans to the people.
- Blackmail or threatening
A licensed lender will never try to blackmail or try to threaten you into taking the loan from them. While the illegal lender might raise their voice and also use abusive language so that you take a loan. These illegal lenders are very easily recognisable in the market and need to be put behind bars.