How to Know If a Moneylender Is Licensed?

How to Know If a Moneylender Is Licensed?

Without a question, the moneylending sector has expanded over time. In Singapore nowadays, there are hundreds of both legitimate and criminal moneylenders. Therefore, it is essential that borrowers use extreme caution when deciding which company to trust. Because of this, customers frequently search online for terms like "licensed Singaporemoneylenders" or "licensed money lenders in Singapore."

Checking the list of genuine Singapore moneylenders registered in the Republic of Singapore issued by the nation's Ministry of Law is one quick approach to recognize authorized or legitimate Singapore Moneylenders. In August 2021, this list was last updated. To help the borrowers, the Ministry of Law publishes a list that is frequently updated. You can view the most recent list that the MinLaw has uploaded.

How Much Can You Borrow?

Your ability to borrow money from a Singapore moneylender is influenced by a number of variables. You can get any loan amount for secured loans. As long as the moneylenders offer the required loan, there is no upper limit.

In contrast, borrowers for unsecured loans may fit into a variety of categories. For starters, if your yearly income is less than $20,000 and you are a permanent resident or a citizen of Singapore, you are only permitted to borrow up to $3,000 from all of the moneylenders combined. However, persons making over $20,000 per year are eligible to borrow up to six times their monthly salary from all moneylenders combined.

What Are the Interest Rates & Other Charges Moneylenders Can Charge?

The highest interest rate that Singapore Moneylenders may charge is 4% per month, as stated in the Moneylenders Act. No matter the borrower's income or whether they have a secured or unsecured loan, they are all subject to this cap.

Other costs are assessed to borrowers. The first is a maximum charge of $60 for each repayment month. Another is that the loan fee shouldn't exceed 10% of the loan's principle. Of However, if the Singapore Moneylender successfully seeks to collect the loan, the borrowers will be responsible for any court-imposed legal fees.

You can refer to this useful advice from the Ministry of Law for a full calculation of interest rates and other fees. The information here

A borrower must request a copy of the executed contract after being approved for a loan by an authorized moneylending business. This agreement is a binding contract. As a result of its legal abidingness, borrowers are required to be aware of and understand the terms of the agreement they entered.

Every time a borrower makes a repayment on the loan, they must also request receipts. Make certain that the name, amount, and date on the receipt are accurate. As evidence that the loan is being repaid, these receipts are provided. By doing this, the borrower will be safeguarded against competing claims in the future.

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