How to Know Whether You Can Trust Your Money Lender

Well, no matter who you are or where you are, there are times in life when you require some
financial help, and you can’t seem to find someone to help you out. During these times, people
tend to go for loans from big financial institutions, but not everyone can wait for the banks’
processing periods or can match up to their requirements for getting loan approval.

In these instances, many will look to money lenders in Singapore as another way to get a loan
and while the licensed money lending options in Singapore are reliable sources of financial
assistance, it’s important to know which money lenders you can trust. Here’s how you can tell
whether the money lender you’re dealing with is reliable!

Characteristics of a Licensed Money Lender in Singapore

● They are regulated by the Singapore government, this means all terms set forth are
mandated by the law.
● They will be listed on the Singapore Ministry of Law website as a licensed money lender.
● They will detail all your loan terms to you in your contract in a manner that is
understandable to you.

The main thing to remember is that licensed money lenders are regulated by the law, so you
can be sure that regardless of whatever loan you decide to take out, the terms will be fair. But in
order to enjoy this, you must be able to differentiate between the illegal and legal money lenders
in Singapore.

Differentiate Legal and Illegal Moneylenders

Transparent contract

The legal lenders will always present you with a transparent contract that lists all the details
about the loan and provide you with the satisfaction of getting a loan from a good company. If
there is an area of the contract you don’t fully grasp, just ask your loan provider. They should
then break down the terms in a way that you will understand. Do not sign on for anything without
full understanding.

Interest rates

The licensed money lenders won’t be able to charge higher interest rates than the limit set by
the Singapore Ministry of law. You should not entertain the money lenders demanding more
than a 4% interest rate per month.

Three types of fees

A licensed moneylender cannot charge you more than three types of fees. And those fees are
late payment fees, interest and upfront service fees. People charging you more than that are not
legal and you shouldn’t borrow from them.

Check their legality

The Ministry of Law’s website maintains a database of all legal and licensed lenders, you should
go there and cross-check the list if your money lender is listed on it or not. This way you can easily check the legality of the money lenders. The legal money lenders will not shy away from providing all the terms and conditions to you.

Great Legal Loan Options in Singapore

So there you have it! There are tons of great legal loan options in Singapore, you just have to
know where and how to look for them. If you’re still unsure, or just want a quicker solution, you
can just reach out to us instead! So give us a call at our following hotlines: (+65) 62244746
(Yishun) and (+65) 62244749 (Tampines).