How to determine whether the money lender you are about to approach for that much-needed cash and when to borrow is very crucial so that you can avoid making a costly mistake. In the current financial environment, one moment you can be on solid ground financially and the next you are in a financial crisis. In Singapore, numerous legal money lenders can quickly help you fix your financial needs. However, how can you verify that a money lender is licensed to lend money?
The following are the three simple tell signs that will help you to determine whether the money lender you are about to approach is legalized by the government of Singapore to lend money or not.
If you go to a licensed moneylender and he resorts to the use of abusive language or starts to threaten you, take caution with such lenders. If they do not behave professionally, either blackmailing you or giving empty promises that sound too good to be true, please do not proceed.
A licensed moneylender does behave professionally and will invite you to visit their office premises in a registered office address instead of meeting you elsewhere. The company is legitimate and registered with ACRA.
Copy Of Contract
Any licensed money lender will not proceed with the loan without giving you a photocopy of the contract of the loan that you are taking. He is supposed to explain to you all the terms and conditions of the loan for which you are applying. The terms and conditions are clearly stated in the contract and there is no fine print to be wary of.
The right procedure for getting a loan from a legal moneylender is that he gives you two copies of the contract and let you read it and once you have understood what you are getting into or if you have any questions you get clarification from him. After that, you will sign two copies of the contract, one for you and the other for your lender.
Once you have signed the dotted line of the contract, you will have a copy for yourself, and he will retain the other. Be careful if he asks you to sign on a blank or incomplete contract note because by so doing, he might be deceiving you.
Retain Your Personal ID
When you go to a licensed moneylender, you will be asked for your NRIC. These documents are required so as to ensure that you are a Singapore citizen or a permanent resident of Singapore. As the banks or licensed moneylenders are to serve Singaporeans or someone who is permanently based here or currently holds employment here.
Therefore, if you visit a licensed moneylender and he asks for your proof of identity or NRIC, he should not retain them. There is no need for a licensed moneylender should retain either your NRIC once you have proven that you are a citizen of Singapore.
These are the dead giveaway signs that the moneylender that you approach might not be a legitimate one. If you have doubts, you can always seek assistance from the Registry at telephone number: 1800-2255-529 or at e-mail address: OneMinLaw@mlaw.gov.sg.