Borrowing is inevitable! Even for those considered rich, sometimes you may be faced with an emergency that requires urgent funding. This is where a lending institution comes in. In such a situation Credit Company Singapore is often looked at as a better and easier option as compared to banks.
It is true money lenders can be lifesavers especially when you need to borrow money quickly. Unfortunately, in recent years, an illegal industry of “loan sharks” has grown rapidly posing a great challenge in the money industry. They take advantage of innocent borrowers who have nowhere else to go.
Loan sharks are known for their ruthless business practices, massive interest rates, threatening and coercing borrowers. To avoid falling into the trap of loan sharks, here are tips on how to identify licensed Credit companies in Singapore.
Loan Terms
A licensed money lender will always explain loan terms in a language that you understand. In Singapore, the law requires that the lender explains all the loan terms in a language that the borrower understands. Further, it requires the lender to answer any question that the borrower may have about the loan as well as explain the interest rates, repayment method, and repayment period.
Contract Signing
Licensed money lenders in Singapore are required by Law to provide a contract document. The contract document should be written by a lawyer and should have information such as; loan amount, interest rate, repayment period, and late repayment fee.
Any moneylender who offers a loan without a contract document or one who offers a blank paper for signing should be deemed as an illegal lender.
Interest Rates
All licensed moneylenders are required to follow Singapore guidelines on interest rates. Since October 2015 maximum interest rates were capped at 4% per month. Any legitimate lender will never charge interest above the capping. Any lender charging an interest that is above 4% should be deemed illegal.
Listed on the Ministry of Law Website
All licensed credit companies in Singapore are listed on the Ministry of Law Website. Before entering into a contract with any lender, it is important to check if their name appears on the website. If it doesn’t, then let them explain why because high chances are that they are operating illegally.
Physical Address
Licensed money lenders are required to have an office, which must match with the one registered on the Ministry of Law Website. Beware of those lenders claiming to purely operate online. High chances are that they are not registered and there are operating illegally.
If you are out there looking for a legit money lender, follow the link
Why Choose Us?
We are licensed
We offer personalized loans
High loan approval rates
Low-interest rates
Quick turnaround time
Final Word
Knowing your rights when it comes to borrowing is very crucial to your financial safety. This is because there are so many loan sharks operating in Singapore, preying on innocent borrowers who lack information. Follow the above tips and you’ll not be a victim.