A moneylender may be described as a person or group that is able to offer small types of personal loans to individuals or groups that need financial help but at high-rates of interest.
These lenders typically offer personal loans to Singaporeans who have a very legitimate financial need. And when borrowers delayed the repayment, they don’t take inconsiderate actions for instance harassment of their customer but instead, they usually send reminder notices.
In Singapore, legal moneylenders are confirmed by the Law Ministry.
Types Of Loans
– Secured Loans
It’s important that you realize that for you to access a personal loan, the item you put in as collateral needs to be valued at more than the loan amount you wish to take out plus the interest amount that will be charged on the loan.
Once you have signed over your rights of your pledged items, your lender will keep its titles in addition to the transfer forms. They keep them nearby in case you don’t follow the agreement and failing to make payments on the borrowed amount.
When it happens that the worth of your item declines under the outstanding sum remaining, the lender may demand a one-time payment to cover the difference. Secured personal loans often come with rather lower interest rates.
– Unsecured Loans
This loan type allows you to borrow a certain amount using only a promise to protect the moneylender’s investment in case the borrower defaults. To obtain this loan type no assets are required and the moneylender may only have a lawsuit that involves court procedures against the debtor. The court can then make the defaulter repay the outstanding loan amount.
When they don’t have the required loan amount, an order may be placed to sell their property to help settle the loan. However, this doesn’t guarantee the moneylender that he’ll get the entire investment amount back.
Benefits Of Choosing A Licensed Moneylender
- These types of lenders will not harass borrowers from the moment they start the entire loan application procedure to finish. In Singapore, licensed moneylenders operate following the guidelines set by the government. Failure to adhere means that they risk legal actions such as revoking of their business licenses, fines, etc. Due to this, the lender’s repayment schedule is always reasonable.
- Moneylenders always have affordable interest rates. Licensed moneylenders have to stick to the government issued regulations. The process of determining the amount of loan money you are qualified for is standardized.
- When working with a certified moneylender, the waiting period before the loan requested is approved can be notably shorter. This usually happens within a few days. The lenders will not be focused much on a borrower’s credit history. The moneylender process of borrowing a personal loan is incredibly efficient.
- The licensed moneylenders have a legitimate permit of operation, registered landline and a physical office where you can acquire extensive information or even go to when authentication or confirming of personal information is needed for you to be qualified for a loan. As a result, you will not require giving the lenders access to your own SingPass Login in particular since it holds sensitive information about each citizen in Singapore.
- The Moneylenders’ Registry in Singapore has stringently set rules of how moneylenders can carry out advertising for their financial services to the community. The moneylenders have a specific way through which they are able to communicate with their customers. It is a requirement by law that there should be physical office present for potential borrowers to visit given that they would like to make any queries. In addition, when you ever get an advertisement SMS from any approved moneylender, it is your right to report the number to Moneylenders Registry.
Things To Keep In Mind Before Borrowing From Licensed Moneylenders
- Before you visit a licensed moneylender it is important for you to consider other alternatives available that can help you access the finances. Some options like government agency schemes are available.
- Recheck the stipulations of the loan contract you are about to enter into with your licensed moneylender because usually, agreements bind people. Evaluate whether you are able to follow the terms when you consider your income along with your financial obligations. And above all only borrow the amount that you need and don’t get excited by the large amounts that you won’t be able to repay.
- Ensure that you fully comprehend the conditions of the loan agreement and in particular how you can repay your loan. Confirm the amount of time you will be required to pay back the loan. Also, confirm the interest rates charged on your loan. The moneylender should communicate the comprehensive information to you during the signing of the loan.
- It’s recommended that you locate a moneylender who has the best terms. Don’t rush to access a payday loan before you are pleased with the conditions and terms. Remember you will be repaying thus it’s important that these terms be favourable for you.
- Be cautious before signing any contract that has a caveat. A caveat is a notice that stops certain proceedings from being done before informing the issuer of the particular notice.
- Be careful when a moneylender inquires about your SingPass password or even user IDs and when they keep important documents like your national ID card, work permits, ATM cards, driver’s license etc.
- Ensure that your approved moneylender gives you a payday loan with sufficient information. They also have to follow the right processes of lending.
How To Find The Most Suitable Moneylender
Before taking any loan, ensure to shop around for the most suitable moneylender for your financial needs. Read through the interest rates and penalty clauses as well as any other additional fees to be familiar with what you are getting yourself into before signing. Ensure you are able to make regular loan repayments on the agreed upon date to avoid defaulting charges.
Be sure to check the validity of the money lender’s license to confirm they are registered under the Registrar of Money Lenders. Ensure you understand the stipulated terms of the loan application form and when uncertain ask for clarification on the terms and details of the loan.
Consult a lawyer to help further explain the consequences of defaulting that you may face. When the terms are not satisfactory to you, you can opt to work with a different licensed lender who offers the best loan terms to meet your needs.
- Protect Your Rights (Know The Legal Interest Rates They Can Charge)
Borrowers are cautioned to first confirm the interest rates being offered by the accredited money-lender before settling for a payday loan or a personal loan. This will help when you are comparing guidelines and rates to help pick the terms offered, that best meet your financial situation.
- Pick Someone Who Does Not Sell You But Genuinely Wants To Help You
Pick a moneylender who offers you the lowest possible rate, and a convenient repayment period. The repayment amount should also be affordable for you and not cause you more financial strain.
- Ask Around For Recommendation
The Ministry of law keeps an updated list of the licensed money lenders in Singapore, which is a good resource when you are shopping around for a suitable moneylender for your financial needs. These institutions hold legal and updated licenses as stipulated by the Registrar of Money Lenders.
- Approach A Few Moneylenders Before Picking The Best One
Approach a few moneylenders and, compare the interest rates they offer to help you pick the one with the most favorable terms to fit your budget.
- Person Serving You Should Go Through Terms And Conditions As Well As Work Out The Interest Rates In Front Of You
Ensure the person handling your loan application clarifies for you the conditions and terms of the loan you are applying for. Let them also go through how the interest rates have been worked out in front of you. This way you will confirm the rates offered and the repayment period based on the calculations hence no room for hidden charges. Ensure you understand your needs, terms, and conditions of the loan contract before signing it. Bear in mind you are duty-bound by law to honor the terms of the contract once you sign.
Moneylenders in Singapore are alternative access to fast cash for individuals who are unable to get loans from banks. Reliable moneylenders in Singapore ensure after receiving all the required documentation, your loan application is approved within minutes. These institutions ensure fast cash is availed to you to help resolve your financial emergency, thus giving you peace of mind.
Before applying for a loan from any moneylender, ensure you do your research and shop around for the moneylender, who will offer you the best rates in the market as well as a comfortable repayment period without straining you financially.
Ensure that before getting a loan from licensed moneylenders and read as far as you can about the different laws and rules governing money lending. Such information is accessible from the Law Ministry’s website. This way, whenever you ask for the lender’s certificate, which you always should do, you are able to judge against the details it holds with the one you got. Even though it’s rather safe to borrow from legal moneylenders, you should be cautious because you are the one to pay back the borrowed money.