The golden rule of money lending: never settle for a money lender without a legal license—not even in the most extreme financial crisis, and not even as a last resort. It’s important to do your research before choosing your preferred money lender. Never make the mistake of falling into the trap of unprohibited money lenders (a.k.a loan sharks) or you might just end up suffering the dire consequences along the way. While a loan shark might acquire their supply of money by illegal means and get away with it, a legal money lender operates strictly under the Singapore Moneylender’s Act and run the risk of getting in trouble with the authorities if they practise their business in an illegal manner or fail to comply to expected standards.
Below are several advantages of choosing a legal money lender:
1) No Harassments
Partnering with a legal money lender means you will not face issues. Legal money lenders run their businesses according to the rules and guidelines set by the Singapore government with reasonable interest rates that comply with market rates.
2) Set Rates and Agreements Guaranteed
With a legal money lender, what is agreed upon—the amount, interest rates and contract terms—will be honoured with no questions.
3) No Shady Business
Legal money lenders in Singapore operate with a physical office that you can visit as well as a fixed telephone line that is easily contactable. Instead of relying solely on text messages and calls to communicate like most illegal money lenders do, a legal money lender will carry out all business transactions like contract-signing in their office.
When taking out a loan from a legal money lender, your murky credit history should be the least of your worries. The efficient nature of borrowing from a legal money lender means you do not have to worry about tedious and lengthy approval processes. Once the required documents have been submitted and your application has been approved, the cash is yours for the taking.
Authorised and legal money lenders are listed on the Singapore Law Ministry website.