A loan shark is a moneylender who is not licensed and more frequently, they target families whose incomes are very low or those people who are facing financial problems and urgently need money. If you found yourself in a tough financial crisis and you are thinking of borrowing a loan from a loan shark, then you should think twice before getting that quick loan.

When borrowing a loan from a loan shark, then numerous risks are involved. For instance, high-interest rates, processing fees, and frequent harassment by lenders, etc. Hence, you need to get a loan from a licensed money lender like Oasis Credit Services Pte Ltd.

Below are the main things that you have to know about loan sharks so that you and your family members avoid falling targets to these loan sharks.

1) You Might Not Be Able to Repay Your Loan to A Loan Shark in Singapore

Unlike licensed moneylenders and banks, these loan sharks in Singapore could charge a lot of fees, for example, late fees, processing fees, hidden fees, and any other fees that could make it nearly impossible for you to clear the debt.

Their late interest rates and high-interest rates definitely will cause the debt to rapidly increase. Some people have also resorted to borrowing loans from different loan sharks to pay off their incurred debt and by borrowing other loans from different loan sharks. By doing this, the debt further increases, thus creating a spiteful borrowing sequence that might last for several years.

2) They Charge Higher Than 4% Interest Rate Per Month

The sources of where the Loan sharks get their funds are not known. They will offer huge amounts of cash to make high-interest rates within a short period. These moneylenders might also request the debt repayment at any given time.

For instance, you find yourself offered an interest rate that is higher than 4% each month, then that’s an alarm that you are dealing with an illegal lender.

The reason is, regardless of the loan amount or your monthly income, the highest interest rate in Singapore that an authorized moneylender is to charge you is nothing beyond 4% every month.

Therefore, before you take any loan, be informed about the interest rates you are supposed to be charged.

3) They Offer Loans through some odd communication channels

Currently, in Singapore, these loan sharks are rapidly heading to non-confrontational strategies such as emails, social media networks, applications, flyers, SMS, and cold calls to harass loan borrowers and plead with others.

For example, a lot of people have unknowingly been added to chats of WhatsApp groups by foreign mobile numbers, even before getting any advertisements concerning services of moneylending in Singapore.

Be cautious of these loan sharks, as soon as you engage yourself with any of them, then your phone number will be distributed to different loan sharks. This usually results in a spiteful sequence of borrowing cash from different loan sharks so that to pay your existing debts.

4) Loan Sharks in Singapore Might Harass You

Most of us have heard about these loan sharks what they are capable of doing in Singapore. These loan sharks might be cruel the minute they need their money.

In Singapore, if you decide to borrow money from a loan shark, then you will be requested to provide your details, for example, your place of work and even details concerning the school where your children attend to. This information can all be used against you in case you are not able to pay your loan.

Apart from their usual strategies of damaging and harassing you either at your home or workplace, these loan sharks have even developed new techniques such as: sending foodstuffs to your relatives and you are forced to pay for it by the delivery guys.

This kind of continuous harassment can disrupt the daily routine of life. It can also bring up stress to you and your family and in the long run, might even ruin the good relationship that you have with your family members.

5) They Usually Ask for A Loan Processing Fee Before Approving Your Loan

In Singapore, the loan sharks might try to defend it as a compulsory processing fee to all loan borrowers or security due to the bad credit that you have.

In contrast, moneylenders who are licensed usually charge an admin fee of 10% as soon as the loan is approved, which is then subtracted from the principal amount of the loan.

Licensed moneylenders usually don’t request any payments before the approval of your loan.

6) They Don’t Offer a Loan Contract

Another reliable way to know a loan shark is if they do not give you a loan contract.

Suppose they give you that loan contract so that you sign, it could even be an incomplete or a blank one. And they might not even explain to you the terms.

In case you are not that sure about the conditions and terms of the loan agreement, then you should cancel the loan application and immediately delete their contacts.

7) They Approve Loans Remotely

Some authorized moneylenders process and digitally approve the loan applications, on the other hand, they are requested to do a physical verification process and then go through those loan terms in person. All this is done only after your loan has been approved.

On the other hand, loan sharks usually approve the loan you applied for through SMS, email, or telephone with no certification. They will then disburse the loan after approval.

Be sure that you don’t fall for the remote and fast loan approval and payout. On the other hand, the approved moneylenders will let you to their registered offices so that you can go through their terms and conditions and also get verified for the loan approval


The first option in case you want to get a loan should be a licensed moneylender instead of a loan shark. In Singapore, rules may be tough to discourage dishonest moneylenders, but on the other hand, some individuals and companies are still ignoring these guidelines since a lot of people need quick loans and they know.

So, do not let your money difficulties become huge by selecting a loan shark.