Legitimate Licensed Moneylenders
In some situations, you might need a quick loan as you might be tight for cash. You might be looking for a short-term loan from a legitimate or licensed money lender. These are totally ministry-approved institutions that offer such loans usually for a small fee. What you want to find here is someone reputable and totally legal and not the unscrupulous loan-sharks. To avoid anything undesirable from happening, read through this source to find out about the money lenders that you might be able to call.
It is most useful when you have a sudden emergency expense that might crop up. In light of the rising living standards, the right moneylender would be your best option as you could get a small loan and fast cash without having to go through all the hassle of submitting documents and other issues.
- they cannot disclose any of your information as a follower. This can only be done with a written consent from you
- they can only charge a maximum interest of 4% per month on the amount borrowed
- once the loan is approved, they cannot charge more than 10% for administrative fee of the loan amount
- late interest: for late payments, there is a maximum rate of 4% per month for each late month
- a maximum of SGD60 per month for late repayment fee
- the total amount must not be more than 100% of the loan amount. This takes into consideration all charges and fees like interest rate, late fees, etc.
What you should know about choosing a moneylender?
The first and most important factor when choosing a moneylender is definitely its authenticity. What makes this very crucial is that you do not want to get involved with a moneylender which is not registered or in a worse situation, an illegitimate moneylender (also known as loan sharks). So, you want authenticity, legitimacy and reliability.
Are moneylenders legal?
Since you have decided to borrow from a registered money lender, the onus is on you to ensure that you are dealing with the right party. It is your responsibility to ensure that you are borrowing from a legal party. Because anyone can be a registered money lender or anything that they claim, you must ensure that you are not borrowing from a loan shark. Legal money lenders are those that operate under legitimate environments. They usually offer short-term loans to those who are eligible and to those who need them. Although their interest rates are higher than that which are offered by banks, they are not loan sharks for sure. So, always double check before making the decision.
Money lending operations
One thing for sure, the way money lenders operate is that they are very straightforward and direct. The process is very quick and brief. This is because you will usually not be borrowing the money for the long term. What registered money lenders do is that they will:
- first, carry out a screening interview. This is to guild the rapport between you and the money lender
- there will then be request for documents from your side.
- the money lender will also be carrying out some form of credit check to ensure you are financially capable of paying back
After that, the process is very much completed. This is where the process is somewhat similar to how it is done through the bank. If you have underwent such a process before, chances are it will be similar except that it is a lot quicker. In fact, you only deal with one person when it comes to the registered money lenders.
Loan from someone you are comfortable with
In whatever financial situation you are in, you must not take a loan from someone you are not comfortable with. In fact, you must only trust a money lender who is registered with the ministry. You would by now have heard of the term loan shark or at times, known as Ah Longs.
If you are planning to engage loans from the legitimate money lenders, you must take note of certain issues. Among them are:
- to first check if the company you are dealing with is in the registered licensed money lenders list. They must at least be in this list or you should not even think about dealing with them
- always deal directly with them. Never go through a middle-man or a broker
- shortlist a few companies and make comparisons
- the process should not be too cumbersome. Once you have contacted the registered money lender, then you can start with the first level interview.
- You are not under any obligation to take the loan yet, so you need not sign anything
- during the discussion, you must be comfortable and confident or you can just walk out
Throughout the entire process, there might be situations which could change your mind. You might be in a rush to get hold of the money you intend to borrow but you must ensure that you are not at the losing end as well. Be vigilant not to be conned by taking note of the following signs:
- the attitude of the money lender. It should be friendly
- the money lender is able to entertain all your questions and do not try to evade your questions
- a sense of being forced into taking the loan
- rude treatment being given by the money lender
- you feel threatened
The rule of thumb here is that you are not obligated to take up the loan if you are not happy with the terms and conditions. You can always walk out of the office if you are not totally comfortable with the discussion. If you feel unsafe or threatened, then something is very wrong.
We are here to assist any client.Joanna Tan
With more than 14 years in financing consultancy, Sherman has more than adequate knowledge to lead you in getting the best loan and advice in Singapore.Sherman Kew
How do we help?
What we aim to do is to help you go through the application process with the least restrictions. We are aware that when you decide to borrow money from the money lenders, you might be going through some difficulties and hence, we want you to enjoy the process as much as possible with the least possible hassle.
The process of borrowing money
As mentioned, the process involved in borrowing money from money lenders are very simple and straight forward. First, you must go through the list of registered money lenders. Most money lenders do not advertise their services and if you see them in posters or stickers, then they would surely not be in this list. Next, shortlist a few of those that might attract you. You can choose them based on their locations or their interest rates. This can be done by visiting their websites online. In most cases, their websites will include an enquiry form for you to complete which will the bridge them to you. Very soon, someone will contact you to make an appointment. You will then need to prepare a few questions to ask them during the meeting. These questions must be relevant to your benefit. You need to know issues like interest rates, repayment schedule and such. Meanwhile, prepare the documents that will be required. Most of the money lenders will require you have some proof of income or pay slip. After that, take note of the signs mentioned and if everything is okay, then you can proceed. Take note that the loans offered by the money lenders are usually short to middle-term. Ask as many questions as you like and you should be allowed to take the terms and conditions back with you if you want your lawyer to go through it. Always be confident of what you can or cannot afford. Never sign a document unless you are absolutely sure of what you are signing.