Key Differences between licensed and non-licensed Moneylender Singapore

Unconventional moneylenders like friends, relatives, and acquaintances lend you money only because they believe in you. Licensed demand Money Lender Singapore, on the other hand, more than just confidence.

Face-to-face verification is usually required by licensed Money Lender Singapore companies. Applicants for loans must come into the office with evidence of identification, proof of income, and the last three months' pay stubs. Your credit history may be questioned by a professional loan originator. Bad credit may not preclude you from obtaining financial loans, but it may have an impact on other aspects such as the loan amount granted.

Licensed vs. Unlicensed Lenders: What's the Difference?

The majority of individuals would not be able to tell the licensed ones from the unauthorised ones, but there are a few signs that you're dealing with the unlicensed ones:

Documentation in the Legal System

Moneylenders who are licensed are listed in the Registry of Moneylenders and follow the Moneylenders Act. If you can't discover the lender's license number on the Registry, it means they're operating unlawfully.

Mechanism of Debt Recovery

When it comes to not paying on time, most illicit moneylenders would harass their clients. Some people would wake up to find their house's walls splattered with paint. Others would be harassed on social media and through their cellphones.

Rates of Interest

Because it is required by law, licensed lenders will only offer you an interest rate of up to 4% each month. The loan agreement's terms and conditions are quite clear and should be verified by a legal officer. Before you do anything else, you should always investigate money lenders in Singapore and their rate of interest for the loan you are applying for. The majority of them are public on the internet, and you may also verify with the government to see if they are licensed.

The contract appears to be too good to be true.

Read and comprehend all of the documents that will be provided to you. Do not sign anything unless you are certain that everything is clear to you. Consider your options carefully before signing a contract, and trust your gut. If the offer you're given seems too good to be true, you're probably dealing with a shady lender. Remember that unlicensed Money Lender Singapore will only make your debt worse, so make sure you know if they are following the law or not. They will always find a way to persuade you with their sweet words and irresistible promises. They will go to any length to persuade you to apply for a loan, despite the fact that you will be in serious financial difficulty in the future.

Loan terms of agreement

The Singapore Registry of Moneylenders mandates lenders for using simple terms and properly explain their loan arrangements. They also compel all Money Lender Singapore to respond to any inquiries a borrower may have. Not included, but not restricted to, answering any questions you may have about your loan, such as the loan's interest rates, as well as defining the interest rates of the penalties, the settlement deadline, and the various payment alternatives.