Top Signs of a Trusted Licensed Moneylender Singapore
If you want to take a loan in Singapore, you should borrow from a trusted licensed moneylender Singapore.
So, in this post, we will discuss how you identify a reliable licensed moneylender in Singapore.
Signs of a Trusted Licensed Moneylender Singapore
The following are the top signs that can help you make an informed decision when looking for a reliable moneylender in Singapore.
Listed in the Registry of Licensed Moneylenders
The most important indication that proves a licensed moneylender is trusted is its inclusion in the list provided by the Ministry of Law. The registry is in the public domain and regularly updated; hence, it should be used as a primary source of reference for proving the legitimacy of any moneylender.
If you cannot find the lender you’re considering, this should raise a huge red flag to avoid them.
Transparent Loan Terms
A good licensed money lender will always be fully transparent regarding the loan terms- from interest rates to repayments, fees, and fines. The lender should explain as clearly as possible and ensure you understand all conditions before signing an agreement.
Notably, where there is avoidance of discussions over details or hurrying for immediate signings by a moneylender, that is a very telling indication of untrustworthiness.
Legal Interest Rates and Fees
Money lenders in Singapore are also highly regulated regarding what they are lawfully allowed to charge in interest and fees. Some existing ceilings include the maximum interest rate not exceeding 4% per month, and the loan approval fee is to be capped at 10% of the principal loan amount.
Trusted money lenders always comply with these regulations and are upfront about their fees. Therefore, if a moneylender charges rates or fees that exceed these legal limits, you’re likely dealing with an unlicensed lender. their fees.
Proper Credit Assessments
A good lender will first assess your creditworthiness properly before lending to you. This shall shield you and the financier from possible financial risks. They will ask for your proof of income, identification documents, and a breakdown of your current financial obligations.
If a lender sanctifies the loan without checks or offers quantity beyond your repayment capacity, they are not genuinely interested in your welfare.
Physical Office and Professional Operations
A physical office means legitimacy and accountability. A good licensed money lender operates from a physical office where one can meet the staff and discuss matters over a loan. The place of operation should be professional, and you should feel comfortable asking about everything.
Therefore, you should avoid those lenders wanting to communicate only through telephone calls, WhatsApp, or emails and refuse to meet you in person. Also, in cases where the office location looks dubious or unmarked, it should raise a red flag too.
No Harassment or Intimidation
One of the surest signs of a good moneylender is how professional they are. Licensed money lenders have stringent guidelines to apply ethical conduct in all transactions.
If, for example, you cannot repay your loan, a very legitimate lender will talk with you civilly and work his way through alternatives with you. They will threaten neither you nor your family.
The red flag will most definitely arise if there is harassment, intimidation, or even property damage.
Conclusion
Borrowing from a trusted moneylender keeps you on the path to financial stability and success. Therefore, always research and ask questions to ensure you deal with a trusted and reliable moneylender.
Lastly, protect yourself from unscrupulous money lenders, by always looking for one that is licensed, transparent, and conducts business with