Are you short on money and intend to borrow from a money lender in Singapore?
Most people decide to take out bank loans when they don’t have enough money to cover their expenses. However, banks often have a more stringent and complex approval process, which may not be beneficial if you require money quickly. If you need quicker approval, licensed lenders are a good option.
However, is it safe to borrow from a licensed money lender? Or what are their procedures if you don’t return the money on time?
Before you start borrowing money, you should know the factors and reasons to choose the best-licensed money lender in Singapore.
Benefits of Taking Loan From a Licensed Money Lender
We have a few options when it comes to borrowing, including banks, licensed money lenders, and close personal contacts. You should choose licensed lenders over banks if you need a loan for a variety of reasons, including the following:
1. Quick and Simple Cash Loan Process
Money lending can be complicated for applicants who are applying for the first time or have poor credit. As a result, money lenders provide simple and speedy cash loan procedures to enable clients to get a loan that suits their financial needs. It shortens the period of economic uncertainty, enables customers to get loans sooner, and ensures that everyone can find an appropriate financing option.
2. No Harassment by Unlawful Money Lenders
Every registered money lender in Singapore is required to go by a set of guidelines, which are meant to promote fairness and protect customers from abuse. If a lender with a license violates even one of those rules, the borrower can report the lender to the authorities, who will severely penalize the lender.
The lender’s license could also be terminated if the crime is severe. Money lenders who have a license should handle their clients with professionalism.
However, illegal lenders don’t have to abide by the laws, which is why they frequently harass innocent borrowers.
3. Reasonable Interest Rates
It is against the law for licensed lenders to charge high-interest rates. In Singapore, the Ministry of Law verifies legal money lenders and controls the interest rates. To avoid borrowers from getting into debt and having to pay rounds of high-interest rates that never seem to end, a private money lender in Singapore is only allowed to charge a maximum of 4% monthly interest rate.
You also don’t have to worry about finding a money lender with a low-interest rate. Borrowers have the opportunity to compare rates from legitimate money lenders on their terms and benefit from speedy approval and flexible repayment plans, thanks to the market’s competitive prices being available online.
4. Shorter Payment Terms
Although banks typically offer lower rates than licensed money lenders, you also need to take into account the terms of their loans. You will need to make a long-term commitment to paying interest if the payment term is prolonged.
On the other hand, Singapore’s authorized money lenders provide shorter payment terms. It’s noteworthy to keep in mind that you’ll pay off your debt faster if the loan period is shorter. Everyone wants to pay off their debt sooner rather than later, so the idea is appealing.
5. Access to a Range of Loans
Licensed lenders offer a variety of loan plans with diverse terms, in contrast to most illegal lenders who combine their services into one or two loans. The best-licensed lender should offer the following loan categories: education loans, medical loans, business loans, wedding loans, and more.
Customers can obtain various loans for various purposes by categorizing loans in this way. Additionally, depending on the loan’s intended use, you can negotiate lending terms and amounts.
6. No Credit Checks
If banks don’t believe you will repay them, they won’t lend you money. It is unlikely that a bank will lend to you if you have a low credit score. However, a legitimate money lender does not rely heavily on your credit score. They are aware that they can use your securities if something prevents you from repaying the loan.
They calculate the interest rate for your loan based on how much money you borrow, how long it takes you to repay it, and other similar factors. You can obtain an interest rate that works for you because an authorized money lender is not concerned only with the state of your credit history.
7. Safe to Borrow
You must make sure that your personal and financial information is secure while applying for a loan. The only method to guarantee that these particulars are kept confidential is to work with a legitimate money lender. Given that unlicensed money lenders’ business practices are not monitored, working with them puts you at risk for malicious assaults.
8. Transparency in Every Transaction
Loan sharks want to convince you to get a loan from them so that they can charge higher interest and obtain hefty amounts of money. It’s obvious that they do not have any contract or disclose all the loan transaction details. They try to conceal certain facts and take advantage of hidden information later.
It’s not the case with licensed moneylenders. They explain everything that will happen during the entire transaction process. Once you discuss all the loan requirements and submit the documents, a legally-binding loan contract is formed. It defines every little information about your financial exchange with the entity.
You should avoid lenders who are not transparent about how they conduct business as they may harass you later.
Licensed moneylenders in Singapore are safe and reliable entities to borrow money. Stay wary of illegal moneylenders and streamline your loan process quickly.
A legal money lender is registered with a regulatory agency and must be licensed to give out loans and services. What this means is that they are bound to follow the already set rules and regulations by the government, among other factors.
A look into what is the difference between licensed moneylenders and banks. Typically, a bank is, maybe, making a term loan against fixed assets of a company in a revolving line of credit for operations and other types of credit facilities to acquire companies.
Moneylenders serve that population that gets beyond the risk profile of a bank. Banking actively deals with the acceptance of deposits as lending money, whereas moneylenders may not include acceptance of deposits.
There are other types of loans that are more complicated and certainly riskier for a client that wants to grow more quickly than the risk profile of the bank warrants. Legal moneylenders like SUCredit Company highly come in here as they offer an array of different products regarding loans where they run a much more disciplined quick process to help the client find a new source of capital.
Products That Legal Money Lenders Offer
1. Asset Based Lending
Asset-based lending (ABL) is given to businesses that then provide an asset as collateral for the loan. In most cases, the cash is used to boost the business. They can decide to use it for some business operational costs or expansion.
It has become a popular choice for companies and individuals that don’t have credit ratings, track records or patience.
2. Rescue Finance
Typically, it is a provision of a loan to a company, business, or individual in difficulty. Moreover, it provides solutions to fundamentally sound businesses with unstable balance sheets due to cyclical pressures.
There are quite a few advantages of rescue financing. Sales and profits are mostly increased once the loan has been granted and minimizes potential bad debt. Since it is a loan to boost up your business, capital return is improved unlike before.
3. Bridge Finance
This is a short-term loan used to provide quick financing to a company or individual until permanent financing is arranged.
Bridge finance is a stop-gap solution that is most convenient for individuals looking to buy a second home before selling their first.
The rate of interest on bridge finance is relatively higher than that of term loans. However, the approval time is way shorter than other loans.
How Exactly Do Loans Work?
All loans work the same way whether from moneylenders or a bank and when you pay them back, they earn a profit through interest rates. Licensed moneylenders are only allowed to charge interest annually depending on whether security, i.e. giving up something valuable you have as a “deposit” for the loan, is given or not.
Banks, however, have different interest rates and a deposit or a down payment, depending on what the money is used for, how much you borrow and how you want to pay it back. Usually through a tenure (paying a fixed amount every month for a set period).
Things To Consider When Choosing Legitimate Money Lenders
1. Lender’s Reputation And Credibility
The answer to this question is the most important. Does the lender do what they say they will do? Get referrals from other borrowers, if need be, to check the lender’s trustworthiness. It is very important to know the credibility of the moneylender and take your time and read other borrowers’ reviews and testimonials until you have the right image.
However, never rely on a single source of information, as the internet is full of scammers, and it may end up being a trap. All this is to help you ascertain a credible moneylender.
2. Loan Specialty/Volume
Why do you need the money? Is it for a small business or an emergency? These are some questions to ask yourself. Answering these will assist you in knowing the right moneylender to approach.
You might wonder why it is important, as all lenders have the same goal and objective. The main contrast is in the payment process and interest rates. A lender designed to offer personal loans is different from the one that lends for business-related assistance.
3. Interest Rates
All moneylenders have got their preferred method or system of payment, and so are their interest rates. Most of these factors can easily be accessed from their website, advertisements, or through contacting them on various platforms.
Based on this, finding the one with low-interest rates is easier compared to the traditional ways of finding information on moneylenders. Moreover, most lenders often offer loans with sensible interest rates.
Making a comparison of different lenders helps or rather guides you to counter-check all factors of the moneylender, mostly when it is your first time applying.
4. Terms Of Engagement
Generally, what this means is that you should consider reading the lender’s policies, terms and conditions as they may contain information that is not stated on the website or so. These may include features like repayment schedules, repercussions of payment failure, or interest rates as earlier stated.
What would be the case if you default or miss a loan repayment within a few days? The answers should be in the terms and conditions of the moneylender. Your credit score should always be key when it comes to loans and keeping them positive.
When you approach a legal moneylender, you will feel safe. This is because all their terms are transparent, and you won’t have any fear that they can con you in the process. Thereby, always try to check how legitimate the moneylenders are. You can get a loan, then they start pressurizing you immediately. Always be careful and choose a legitimate moneylender like SU Credit.
Seeking financial assistance from moneylenders in Singapore may be a catastrophe if correct decisions are not made. Consider first if the moneylenders are licensed or not licensed before any loan application.
Licensed moneylenders are registered by the government and strictly follow policies set by the government. Their interests are pretty standard and straightforward since all operations are monitored.
Make an astute decision to visit a bank or any other suitable moneylenders in Singapore like SU Credit Company to acquire any coinage. If you go for lenders not accredited to offer loans, you might face worries like high-interest rates or con you to pay some amounts to secure credits.
Go through all moneylenders and check if they are licensed to evade any difficulties that may arise; compare all lenders and shortlist the few companies that suit you, and you feel offer the best contract.
Benefits of Accompanying Licensed Money Lenders
Subscribing to licensed moneylenders may be linked with endless benefits.
1. Rational Interest Rates
Licensed moneylenders tend to provide reasonable interest rates. This is unlike the loan sharks who provide unreasonable interest rates. You even find that they aren’t straightforward with what they are offering.
Thereby, try your best to consult a licensed moneylender who will assure you of flexible repayment terms too.
2: No Hidden Charges
All moneylenders in the market aim to generate more earnings from their funds. Therefore, you must be keener and more selective when making choices of moneylenders.
Unlicensed lenders may make imaginary boasts of offering loans to persons at a very low-interest rate as compared to others, while they are not.
These companies don’t have any fees that might be hidden, as other unlicensed companies tend to have an excuse to hold clients for more extended periods. These companies only demand interests in money they lend a client, no further cash inclusivity.
By selecting licensed moneylenders in Singapore, you will have no stress of any hidden charges. Such companies have a good rank in the country and are not ready to tint their name and deteriorate customer relations.
3: Their Terms And Conditions Are Pliable
Licensed moneylenders have not set rules or limitations for their clients who need short-term credits; you can utilize finances for any purpose you want. Licensed moneylenders have straightforward terms that won’t leave you puzzled about what is needed.
When your financial stability deteriorates, they never harass you after borrowing or whenever their cash puts you into a monetary crisis. Uprightness, openness, and answerability are the big reasons they remain at the pinnacle of clients’ choices when seeking loans.
4: Unpretentious And More Convenient
Loans from these authorized companies are readily available, and one can access them through online websites and platforms. Do a detailed analysis of the moneylender you intend to cave in your documents.
The big reason behind this is that unlicensed moneylenders may decide to use your records for malicious means. Therefore, do thorough research before approaching a moneylender.
How Do You Check If Money Lenders Are Licensed?
1: Check If That Company’s Name Is On Minlawa’s Register
A good way to determine if a company is authorized to lend money is to check the list of licensed moneylenders in Singapore. Every month, they avail an updated list of all moneylenders allowed to loan individuals.
This information provided by the register will inform those with interest in securing loans to differentiate the licensed and unlicensed moneylenders.
2: Be Acute On Adverts Made By Money Lending Companies
If companies keep on calling and tending to offer loans via mobile phones, the possibility of them being unlicensed moneylenders in Singapore is very high or a licensed company going against rules and regulations.
Following MinLaw’s website rules, they have shortlisted a few channels where registered lenders display their legal information about loans. They are business directories, licensed moneylender websites, and adverts placed on the company’s doors, gates, and windows.
Before making any decision about seeking a loan depending on advertisements, seek full details from the company.
3: Investigate If The Company Has A Physical Address
Most licensed moneylenders tend to have a physical address that you can go to when in need of a loan. Thereby, try and check their website to see if they have highlighted their physical address.
Loan approval without visiting companies’ premises may sound like a scam. Also, acquiring loans by meeting up in unknown places is not a legit deal. Make a definite check on the solemn list of licensed moneylenders.
4: Licensed Money Lenders Need Face To Face Affirmation
It has become a trend for all moneylenders to offer loan applications online due to technology modernization. However, licensed moneylenders still need physical assurance to process your loan.
Physical appearance on the premises of a licensed moneylender is necessary before progressing to loan disbursement.
What A Licensed Money Lender Cannot Do When Collecting Debts.
1. Cause Harm
When licensed moneylenders are collecting debts, they are not given the mandate to cause any harm to you.
In case it happens, they are severely punished. In Singapore, if you make an individual unconscious or cause wounds to the body, the punishment is two years imprisonment.
2. Wreck Your Property
Licensed moneylenders don’t have a right to alter your property, not even putting posters on your door. In Singapore, this is a severe offense, they should not even dare to embarrass you. In case they do, they are heavily fined.
3. Tracking Down A Debtor
This includes approaching your family and close friends, coming to events you are attending, visiting areas you visit frequently, and following you. This is illegal and unlawful. A good money lending company won’t do that.
Trying to secure loans from companies is a tragedy and frightening to most individuals. Going through detailed information about loans can be massive. Do good research on licensed moneylenders on government websites. Never deal with unsanctioned companies since they have very unlogical fees and illegal charges.
Loan sharks are illegal money lenders operating in Singapore and usually target poor and desperate borrowers.
As compared to the recommended licensed moneylender, they pretend to be the best lenders that you can ever get.
They attempt to lure you into borrowing with them by being friendly and offering very attractive terms when the bank has turned you off due to a poor credit rating.
However, the money that they give you comes with a very high price, not to mention the risk. You might think it won’t be bad if you are applying for a small loan that you’ll clear within the shortest time period but that’s not the case. Here is why
Never Ending Interest Rates
Borrows get attracted to loan sharks because they find the loan application process very simple as they don’t have to make trips to the bank or money lender’s offices since everything is handled online.
However, that convenience comes with a cost, they add extra charges not agreed upon at the point of the loan application. That is not enough, they add daily interest upon default which makes a small loan build up to huge amounts leaving you into a financial crisis.
The sad thing is that, instead of empowering these poor and desperate borrowers, they burry them deep into the pit of debt.
Unlike banks and other recommended licensed money lenders loan sharks do not necessarily have clear loan terms and conditions. So you are never sure what your terms are and therefore, they can subject you to some crazy interest and other illegal charges.
In most cases, illegal money lenders will give you a blank paper for a contract to sign, of which they add some information that you are not aware of later after they’ve processed the loan. Whatever is put there in becomes binding as you’ll have signed the document though you signed when it was blank.
Personal Possessions Taken as Security
Although illegal, loan sharks will ask for your passport, bank cards, and other important personal documents as a security deposit. This is to guarantee that you won’t run away before settling your debt
Your personal identification documents are yours by law and they should be in your possession at any given time. Your personal information should be protected to avoid access to illegal identity duplication or identity theft.
Trading your personal identification documents for a loan is not worth any amount of money as it can easily be abused and cost you more than the benefit derived.
No Option of Full Settlement
Unlike the recommended licensed moneylender, loan sharks rarely allow the borrower to settle the loan in full. This is to keep you paying the high-interest rate that is ultimately their profit. In the event that they allow you to pay in full, the load full interest that you could have paid if you waited for the full term.
Pressure to Clear One Loan with Another
Loan sharks will come with all sorts of solutions in the name of helping you fix your financial problems. If they find you struggling with loan repayments, they’ll advise you to borrow from another loan shark so as to clear their loan fully to avoid future penalties.
Don’t be fooled, this will just get you into a larger debt with even higher interest rates and you’ll be left to pay that loan forever.
Violence and Harassment
When you are unable to meet your monthly installment, they’ll issue threats and subject you to a lot of harassment. They even involve family members and friends in their coercion to force you to clear the debt.
In a nutshell, the best way to deal with loan sharks is not to deal with them at all.
Singapore is a place where the economy has been rapidly developing over the past two decades. This has created a huge demand for money lenders in Bugis, who serves as an important financial instrument and help individuals to get cash easily. Many people are having a hard time managing their finances these days. They find themselves in need of extra cash but don’t have many options to get it. If they do not have any collateral or a steady source of income, traditional banks and loan institutions will not give them money.
It is here that money lenders come into the picture. Necessity is the mother of invention and the same is true for money lenders in Bugis. People have been borrowing money from others ever since they started to do business. Moneylenders are not like banks that lend you a certain amount of money at a particular interest rate, but they are more like friends that help you out in need.
What does a money lender in Singapore denote?
A money lender in Singapore is an individual or entity that lends you money. Moneylenders in Singapore come in many shapes and sizes. Some of them are well-known national brands while others are local, family-run businesses that have been around for generations. Although they do not advertise themselves as such, all moneylenders operate in a similar fashion.
Money is usually lent on a short-term basis with interest rates set by the moneylender. The borrower will be required to submit a personal financial statement showing his income and expenses so that the moneylender can determine whether he is likely to be able to repay the loan. The borrower will also be required to provide a guarantor who is willing to take responsibility for the loan if the borrower fails to repay it.
Need and Importance of Moneylenders in Bugis
Moneylenders are an important part of our society. They provide a vital service to individuals who need money but have no other avenues for obtaining it. Moneylenders in Bugis have been providing financial services for over 30 years. They help with short-term loans, long-term loans, and even mortgages. Since most moneylenders are also property agents, they can help their customers finance the properties that they buy. In this way, moneylenders provide a one-stop shop for people who need short-term or long-term loans.
Here are some of the reasons you might want to borrow money from a money lender in Bugis
The interest rate
In Singapore, legal moneylenders are verified under the Ministry of Law. The ministry regulates the interest rates that a private money lender can charge to its borrowers. To keep clients from racking up debt and enduring cycles of exorbitant interest rates, a private money lender in Singapore can only charge up to 4% monthly interest.
Flexibility with a loan term
Borrowing from a private money lender has its benefits. It is easier to get a loan from a licensed moneylender than it is from a bank. Banks are very rigid when it comes to their policies and procedures for loans, whereas licensed moneylenders have flexible guidelines that make borrowing more convenient.
The waiting period to get a loan
It’s often a common occurrence for bank loans to get approved only after one to two weeks on average due to the stringent evaluation process. Private money lenders, however, offer fast cash loans as they understand an urgent need and value the client’s needs.
A private money lender in Singapore typically does not need documentation before granting you a loan. This saves time and effort, as well as reduces the hassle of getting a loan when you need it most. Private moneylenders are also able to provide loans based on your eligibility and what assets you will use to secure the loan
How can you find a money lender near me in Bugis?
If you wish to find a money lender near me in Bugis, especially one of the best money lenders in Singapore. Here are some suggestions to find one
Local newspaper to find a money lender in Singapore
One best way to pick apart the best lenders you can use is to find the ones nearest to your location are local newspapers. As you know, newspapers are no longer quite as common as they used to be. But that doesn’t mean that you can’t find them in all the usual places. If you want to get your hands on one and start reading through the ads, then you should head over to your nearest news agent straight away. There are plenty of local newspapers that will help you to find a lender without any problems at all. You can also read online news sites if they are available in your area.
Check The Registry of Moneylenders
A large part of the Registry’s success lies in its strict screening process. When vetting moneylenders, they look for financial stability, past client feedback, and company history. With a focus on quality rather than quantity, the Registry is able to provide reliable information for people looking for a moneylender.
Make a list of licensed moneylenders who are active in your local area. These will be the best for you because there is a good chance that someone you know at work or school has already borrowed from them. You can also find them by searching on Google, but make sure that they are licensed with the Registry before you borrow from one.
Your most trustable moneylender in Bugis- SU Credit Pte Ltd!
In Singapore, getting a loan can be an overwhelming process, especially if you’re unsure of where to start. If you are looking for a reputable moneylender in Bugis, contact SU Credit Pte Ltd today! SU Credit Pte Ltd is an established and credible loan company based in Singapore. Accredited by top banks and insurance companies, we aim to provide our clients with full satisfaction with their credit loans. Fortunately, we at SU Credit Pte Ltd are here to solve all your money problems! Our company is an industry-leading provider of loans and financial services in Singapore. We have a long list of happy clients who we can proudly call our patrons. If you are looking for a reliable, honest, and transparent moneylender. SU Credit Pte Ltd is here to lend you a helping hand. Log on to https://www.sucredit.com.sg for more information on our loan packages and how we can help with your needs today!
Our world is a vast place full of chances. However, the chances of achieving success in life are low if you do not have the financial means to take advantage of these opportunities. This is why you may need to consider borrowing money at some point in your life. Personal loans in Singapore are available for anything from consolidating debts to expanding your business, start-up costs, and more. You can use this financial aid for almost any purpose that you need help with at the time. There will need to borrow funds for a variety of reasons. Whatever your reason, it’s crucial to find a licensed money lender in Singapore that can provide you with a top-notch solution at the most reasonable price.
What are licensed moneylenders?
Moneylenders are private individuals or companies that offer short-term loans, usually for emergency purposes. They make money by levying interest on the money loaned. There are two types of moneylenders in Singapore. The first is a legitimate lender registered with the Ministry of Law under the Moneylenders Act and can charge up to a maximum interest of 4%. The second is a loan shark that is not registered with the ministry and operates without a license.
Licensed money lenders in Singapore also require a written contract and a clear explanation of the terms, interest rates, and fees involved. It makes an excellent option for those who have trouble getting loans from traditional banks.
Why is it essential to have a licensed money lender in Singapore?
While we all know that it is illegal and entirely against the law to lend money without a license, why would you need a licensed money lender? Just like how getting a driver’s license is vital in order for you to drive around safely, having a licensed money lender is crucial for you to make sure that your investments are safe. Licensed money lenders in Singapore offer many benefits over those who aren’t licensed. The first benefit is that licensed moneylenders undergo regular audits and are subject to laws that regulate their activities. These laws ensure that they operate fairly and honestly so that consumers will always be protected when they make loans with them.
How much does a licensed money lender charge?
Licensed money lenders in Singapore are only permitted to charge a maximum monthly interest rate of 4%. It is true regardless of your salary or the nature of your loan (secured or unsecured). For example, suppose you borrowed $10,00 and repaid $4,00.
What must you look out for when selecting the Best Money Lender In Singapore?
Small businesses are a mainstay of the Singaporean economy. This fact is why it is no surprise that there are a lot of money lenders that target these businesses. With so many money lenders in Singapore, choosing the right one can be a real headache. There exist hundreds, if not thousands, of lenders out there, all claiming to have the best rates and highest service standards. How do you realize which one you can pick?
It’s a tricky decision, but here’s how you can narrow down your choices and find an honest, reliable lender for your specific needs.
The first factor is the interest rate. The rate of interest represents the price of taking loans. You’ll want to look for a money lender that offers the lowest interest rate.
Reviews are extremely important when choosing a moneylender to loan with, and you must check the lender’s reputation before you do. It is perfectly okay to ask around and check online reviews of institutions you’re considering a loan to find out how they operate and how they treat customers. They should also be able to provide you with references from past or current clients if you need more information.
Application and approval process of moneylenders
A good moneylender will be transparent, straightforward and will take the time to educate you on their process. This is significant because you don’t want to feel like you’re being taken advantage of, and you need to know what to expect so you can plan for it.
The loan needs of businesses and individuals in the Bugis area of Singapore
A survey of loan needs in the Bugis area of Singapore reveals that there is a high proportion of respondents who reported their income as less than $2,000 a month. Nearly a quarter of the survey respondents had an income of less than $1,500 a month.
The most common reasons for needing a loan were medical treatment and household expenses. The most common funding source for financial loans is savings and insurance, but this was seen as inadequate by many respondents. Loans form a pivotal part of many businesses, as it allows them to form and operate.
It also allows for the opportunity for growth and employment. Businesses require loans to maintain a healthy cash flow and make timely payments to suppliers. Singapore manufacturers seek a business loan to expand their operations by purchasing new or upgrading machinery or equipment.
Recommended licensed money lenders in Bugis!- SU Credit Pte Ltd.
Money lending is a business that has been around for years, and it will not be going away any time soon. Choosing the right licensed moneylender for your needs is pivotal because you do not want to end up with more problems than you started with initially. If you’re looking for a licensed money lender in Bugis, One of the most reputed money lenders in the Bugis area of Singapore is SU Credit.
SU Credit Pte Ltd is a licensed moneylender in Singapore. We provide a variety of services and financing, all of which get tailored to our customers’ needs and capacities. Our loans are available at competitive interest rates to ensure that we help you through your temporary financial distresses. At SU Credit Pte Ltd, we make the process of borrowing money quick, easy and stress-free. We have years of experience in lending markets and can help you with any financial needs you may have. We have all the options for you. We also give out personal loans and small business financing solutions. Whatever your need, our team will be happy to discuss this with you further. Contact us today for more information about our products and services, or register on our website now to apply for a loan!
In almost all business fields you will never miss a scammer or just some corny businesspeople who do not follow the respective business ethics.
For example, in the money lending business section there are legit moneylenders and there are scammers who are loan sharks.
You should be aware of unlicensed money lending in Singapore. Some of these loan sharks are clever enough to tell you that their agency is unlicensed because the business is too new to be on the government database. Try to research the good and legit moneylenders in Singapore to be safe.
One of the best legal money lenders is Su Credit Singapore PTE Ltd. They have favorable interest, repayment terms, privacy terms, and terms and conditions.
Loan sharks can trick you into getting a personal loan through:
1. Advertising to you through unofficial platforms using unknown or unidentified accounts
These loan sharks might send you messages on Whatsapp, SMS, Facebook private messaging, calls, and flyers. This could be quite suspicious because “how did they get your phone number?” or your“Facebook account details” in the first place.
This is where you should trust your instincts. Their advertisements and messages may look persuasive and attractive but please do not fall into their traps. Additionally, they get these private details using the wrong means that should make you doubt them.
Licensed moneylenders in Singapore should only use business directories, consumer directories, social media official sites, and official websites as their advertising mediums. You should disregard these other weird channels of communication.
2. Offering you limitless amounts to be borrowed
In the normal moneylending sector, there are some rules that one should follow when it comes to borrowing. It is your collateral value that determines the maximum amount you can get.
When it comes to these loan sharks they offer you any amount without considering your collateral or even other assets. They also try their best to look generous and very considerate to you which is not quite normal in moneylending. This should be a red flag to you as an individual since the deal seems too good to be true.
When you are in such a desperate mood, you may end up falling into their traps and when you fail to pay, get a lot of harassment. They may even end up auctioning your properties unlawfully.
At times during repayment, they may claim some other hidden fees and failed payments that they initially never told you when you were signing the loan contract. When the deal is too good, think twice.
3. Minimal or no procedures followed
These loan sharks can trick you by telling you that there are no documents needed when applying for the loan. You as an individual may get attracted to such a deal fast since maybe you have no work ID to show your employment status.
Your identification card and residence may also not be asked but when it comes to money lending companies, they will require those details. These loan sharks give you an easy time in the beginning since they are aware of what you are in for in the future as they make their profit.
4. Make paperwork seem simple
These loan sharks know that people do not like long processes and lots of paperwork. Hence, they make things easy. They also track people and lie to them about the policies in moneylending. This is where they trap people who are never keen when it comes to paperwork.
Hence, they draft unreliable contracts. Their contracts may lack the repayment term, their legal obligations, clients’ rights, and legal measures in case of loan defaults. Please take your time when reading contracts.
Loan sharks might even hurry you up in the signing of the contract to avoid you noticing that there are some missing elements in the contract. Be wise!
5. They try to convince you that there is no other option
These loan sharks are very good in reverse psychology. They may talk to you and make you believe that there are no other options to get money apart from them. They will make you feel like you will remain miserable if you don’t get financial assistance from them.
It is important to note that most of these loan sharks ask for your bank pin and other private matters regarding your family which should not be the case. You might even be charged a large fee in the name of processing fees which adds up to your loan resulting in a very huge debt.
How to deal with loan sharks.
There are various ways you can deal with loan sharks. These include:
- Report them to the authorities –
This could apply when these loan sharks persuade you on taking the loan online without even showing you the contract. They might even be asking for your details that are irrelevant in moneylending. Try to ask for their location as a tactic then inform the authorities or the concerned party.
They might try to harass you and force you to take the loan. Be firm on your stand and refuse to take the loan and find a way to get out of there.
Please be careful when you are planning to get a loan. Do not just go to any moneylender you hear of. You must do a background check to make sure that they are not scammers or something of the sort.
Before accepting these loans make sure that the mentioned interest rate in the contract is a maximum of 4% per month. If you see a moneylender giving higher interest rates than that please do not sign the contract or take the loan since that is not legal.
Most loan sharks are connected to other illegal businesses and criminal organizations. Hence, they could even be dealing with money laundering. When one is unable to repay the debt these loan sharks can even threaten your family or even take away all your stuff even those that were not in the agreement and disappear.
Choose the legal money lenders in Singapore like Su Credit and you will never regret it!