It’s difficult to pay off debt and handle expenses in one of the most expensive cities in the world. Amidst all these, you might feel overwhelmed when you suddenly have emergency expenses. In such situations, you might require financial support like a loan. But you must be cautious of loan sharks before taking out a loan from the first lender that offers.
Loan sharks, also called “ah longs,” are unregulated money lenders offering quick loans with exorbitant interest rates. They impose interest rates that are greater than those permitted by law. But their use of harassment as a debt collection method has made them notorious.
According to Bugis Credit, consumers can Borrow funds only from banks or authorized money lenders to prevent getting into even deeper financial trouble. But is it secure to take a loan from a registered moneylender in Singapore? The Ministry of Law is in charge of overseeing authorized money lenders. Need to know more about determining a lender’s legitimacy? Continue reading.
Who Are Authorised Lenders?
A legal money lender operates a verified financial establishment subject to the Moneylenders Act. One of the many financial help programmes available is foreigner loans, personal loans, payday loans, and cash loans.
The Moneylender’s Act safeguards borrowers and regulates authorized money lenders. The Act establishes maximum loan amounts for unsecured loans, controls the advertising of official money lenders, and offers a location where borrowers can quickly verify the credibility of the money lender.
The Ministry of Law’s Singapore website lists all authorized lenders in Singapore. The Registry of Moneylenders updates its database of moneylenders once each month. The list will include all pertinent details about a lender, such as:
– Business name
– Key contact information
– License number
– Business address
Prohibited Practices For A Regulated Money Lender:
Loan sharks, often known as unlicensed money lenders, are prevalent and employ different strategies to deceive gullible people into taking a loan from them. Having stated that, you must understand what authorized money lenders wouldn’t indulge in. Here are some warning signs to watch out for:
– Demanding your SingPass password or ID
– Retains any portion of the principal sum for any cause.
– A language that is menacing or abusive.
– Requesting that you sign an unfinished or blank loan agreement.
– Refusal to return your NRIC card or other crucial personal IDs, such as your passport or ATM card.
– Loan approval without having received your loan application or performing due diligence.
– Giving you credit without fully explaining the terms to you.
Remember that a legitimate lender of money will never use these techniques. Most significantly, they are not allowed to use threatening or abusive language. They won’t ever bother you or your loved ones when requesting repayment.
Final Thoughts:
The most realistic option for your financial situation might be to take out a loan. However, you must exercise due care in determining the money lender’s legitimacy. Verify their licensing and inclusion on popular aggregator and comparison websites.
Trust-only authorized lenders. Contact financial institutions with a long history, 5-star ratings on Google Reviews, and have been chosen by popular aggregator and comparison websites as among the top licensed money lenders in your desired region.
