Quick Tips for Choosing the Best Licensed Money Lender in Singapore
A licensed money lender in Singapore can be an excellent life hacker when life throws unforeseen financial difficulties.
Notably, you do not want to rush into borrowing for a moneylender. With hundreds of licensed money lender options, how do you know you are making an ideal choice?
This article will walk you through some fast yet crucial tips to help you find the best-licensed moneylender in Singapore.
Tips for Choosing the Best Licensed Money Lender in Singapore
1. Check their level of Transparency
A suitable licensed money lender will always be candid about the terms and conditions involved in the loan. Before you sign any contract, check their clarity in the following areas:
Interest Rates: Licensed money lenders can charge an interest rate not exceeding 4% every month. Also, it shouldn’t be unreasonably below that cap and without a clear explanation.
Administrative Fees: The law allows lenders to charge a one-time fee of up to 10% of the loan principal. The money lender should state these costs clearly.
Repayment Schedule: Check the repayment terms and ensure you’re comfortable with them. The repayment plan should fit your financial situation.
If any of those terms sound ambiguous, do not hesitate to ask for an explanation. A suitable lender will take the time to explain everything to you.
2. Read Reviews and Testimonials
Before choosing a money lender, do your research online. Websites like Google Reviews are the best place to check what customers say about previous services. Seek out lenders with positive feedback in critical areas such as customer service, transparency, and reasonable interest rates.
Notably, while one or two negative reviews are expected, a pattern of complaints around hidden fees, harassment, or poor service is a warning. The best thing for a moneylender is to have a good reputation, which results in high customer satisfaction.
3. Comparison of Interest Rates and Loan Terms
Not all licensed money lenders are the same; neither are their loan terms. It pays to shop around for interest rates, periods of repayment, and other fees among money lenders for the best deal possible.
You also have many loan comparison websites in Singapore that eliminate much hassle. Using such websites, you can compare many licensed money lenders based on critical parameters like interest rates and customer reviews.
4. Evaluate the Quality of Customer Service
Good customer service is evidence of a moneylender’s professionalism. They respect their clients and work to make the process of loaning as smooth as possible
Therefore, when approaching a potential money lender for service, consider how they answer your inquiries. For instance, do they listen attentively and politely, show clarity when explaining what will happen, and respond quickly, answering your questions?
If they come off as condescending, flippant, or high-pressure, that is a sign of a negative experience.
5. Know Your Rights as a Borrower
It always pays to know your rights regarding licensed money lending in Singapore. For instance, a licensed money lender in Singapore does not hold any right over you regarding harassment or threats to recover the loan money.
Therefore, if you are being subjected to any unethical practices, you can walk away and move to evaluate the next lender on your list or complain to the Singapore Ministry of Law.
Final Words
Getting the right licensed moneylender need not be a headache in Singapore. By following the above quick tips, you can make an informed decision when picking the money lender to borrow from a pool of them.
Since there are many licensed money lenders, and you can’t borrow from all of them, always use the above tips to evaluate and pick the best.
At SKM Credit, we are one of the best-licensed moneylenders in Singapore. We give credit where no one else can! You can contact us for more information about your value proposition.