Personal Loans in Singapore
5 things to check when choosing a moneylender
by Business Listings EditorCredit: iStock
Moneylenders might seem like the best people you can ever come across because they will always give you the money that you badly need, and you can pay them back at a later time.
You can have a good relationship with moneylenders if you strictly stick to the terms of your agreement. However, big problems usually arise the moment you default on your payments.
The money lending business a very profitable venture to get into, and thus has attracted many people including those who are not qualified to lend money. Unqualified money lenders, locally called ah longs, are the people that you should definitely avoid if you find yourself in need of emergency cash.
How do you know that you are engaging with a licensed money lender? Here are important tips to help you identify a legitimate moneylender:
1. Find out if he or she has a license
Do not work with an individual or a company that does not have a license to prove that he or she is a legitimate moneylender.
You can start by asking them for their license, or even looking into government records that contain all the information on the lenders. The Ministry of Law maintains a website that has a list of licensed moneylenders in Singapore.
A license proves that the lender has fulfilled important requirements and met certain conditions before getting into business.
2. Make sure that the terms and conditions are clear
A legitimate moneylender will have clear and understandable terms and conditions.
Make sure that you understand exactly how much money you will get from the lender, how much you will be expected to pay back, what period will be allowed for you to pay back, and what implications to expect if you do not uphold your end of the deal. The terms have to be in line with government lending regulations.
3. How is the lender advertising his or her services?
One way to spot an illegal lender is through his or her marketing strategy.
You must outright disqualify a lender if he or she is sending you SMSs to advertise his or her services. It is illegal to use telemarketing and SMS marketing in Singapore and other countries to advertise moneylending services because it is an infringement of privacy laws and lending regulations.
4. Is the lender asking you to disclose your private bank details?
Never disclose your personal bank details to any moneylender, to prevent any fraudulent acts that may result from this.
Illegal moneylenders claim that the personal information is important to determine whether you can pay back the loan, but you should be very careful and know that there are some ill-intentioned individuals hiding under the mask of moneylenders.
5. Check for the money lender reviews
You must perform extensive research on your moneylenders before getting money from them, since with the research; you will see their reviews and the reviews will reveal what people have to say about them.
If there are negative reviews about them, take care because it is likely that you will also complain about them, but if most of his or her past clients have only positive things to say, then that is a good moneylender.
Visit SgFave.com Business Directory for a list of licensed money lenders in Singapore.