Adulting is hard enough without having to worry about juggling multiple financial responsibilities. Licensed money lender can help you out by providing cash to cover your expenses. But they must follow strict rules and regulations to avoid being considered loan sharks.
They cannot advertise on Facebook, SMS, or email. Moreover, they must require borrowers to visit their office for face-to-face verification.
Affordability
Licensed money lenders can offer a variety of loan options for people who need cash urgently. They also provide fast and convenient approval processes that are compliant with local rules and regulations. The process is less time-consuming than applying for a bank loan.
Most licensed money lenders in Singapore have online applications that are easy to fill out. They also have physical offices, so borrowers can apply in person and have their loans verified face-to-face. This is a great way to avoid scams and ensure that you get the right loan for your needs.
Licensed money lenders may charge fees for various services, but their rates are typically lower than those of loan sharks. They also have more flexible repayment terms and can help borrowers find the best deal.
Security
Licensed money lenders are regulated by the government, so you can be sure that they follow stricter lending practices than unlicensed ones. Moreover, they have to pass detailed inspections by the authorities and offer a transparent loan process that includes a written agreement between both parties.
Unlike loan sharks, licensed money lenders don’t advertise their loans on social media or via SMS. In addition, they have to display their license certificate prominently in their office.
Licensed money lenders also charge lower interest rates than loan sharks, and they provide a more flexible repayment scheme. This allows borrowers to save more money and pay off their debt faster. They also have a friendly customer service team that can help you find the best financial solution for your needs.
Transparency
In Singapore, licensed moneylenders must provide their borrowers with a receipt for every payment made. This will include a breakdown of the payments, including interest and late charges. They must also send a half-yearly statement of account to their borrowers in January and July. This will allow borrowers to keep track of their repayments and ensure they are up-to-date on any outstanding balances.
Licensed money lenders must comply with local and national rules and regulations regarding their advertising. This includes not advertising through SMS, Facebook or emails. If you are receiving these advertisements, it is likely that the moneylender is unlicensed and could be a loan shark.
Licensed moneylenders will not use threatening or harassing tactics when collecting debts. They are legally permitted to send a Letter of Demand to your home or workplace, but they cannot call you or make any other types of threats.
Fairness
Licensed money lenders comply with strict rules and regulations, ensuring that borrowers are treated fairly. They also offer competitive interest rates and a wide range of products and services, making them an excellent choice for borrowers with financial needs.
A good licensed money lender will take you through the terms and conditions of your loan, ensuring that you understand them before signing the contract. They should also send you a statement of account twice a year. If a licensed money lender does not provide these documents or uses abusive language when collecting repayments, you should report them to the Registry of Moneylenders.
Licensed money lenders typically advertise via consumer or business directories, their registered website, and through advertisements placed within or on the exterior of their official business premises. They do not advertise through SMS, Facebook, or emails, which is a common method of advertising used by loan sharks.
Legality
If you are in a dire financial situation, it is essential that you find a money lender that follows the government’s rules and regulations. This will ensure that your funds are safe and secure. It is also important to avoid illegal loan providers, also known as “loan sharks,” which prey on people who need money quickly.
Licensed money lenders are required to provide clear and transparent information about their fees and interest rates. They must also provide borrowers with a copy of the loan contract that they can understand.
Be wary of any moneylender that uses abusive language or acts in a threatening manner. You should also avoid agencies that advertise on social media platforms or via WhatsApp or SMS messages, as they are likely loan sharks.
