When you’re in search of a reputable money lender in Singapore, it’s sometimes hard to tell between a licensed money lender and an illegal loan shark who operates under cover. Here are some helpful indicators:
- Credible and legal
It doesn’t take long to conduct a quick background check on your chosen money lender. This can save you from a lot of complications later if your money lender turns out to be an unlicensed one. Ensure that the money lender is registered with the Ministry of Law and listed under the Registry of Moneylenders. Refer to URL: https://www.mlaw.gov.sg/content/dam/minlaw/rom/Moneylenders/List%20of%20Moneylenders.pdf. Only proceed once you can verify that your money lender is licensed to operate their business legally. Owning a physical office with a considerable number of staff are one of the many positive signs that the money lender is a licensed one.
- Fixed interest rates
Interests are inevitable when it comes to money lending. On top of the borrowed amount, a legal money lender will set interest rates according to standards of the current market. Be wary of incredible low interest rates that are too good to be true. The last thing you need in the face of a financial crisis is to deal with a fraudulent money lender.
- Flexible repayment schedules
According to your ability to repay your loan, a suitable repayment schedule should be properly discussed with the money lender before you make a concrete decision to take out a loan. Take this time to enquire about your choice of schemes and loan packages. Remember that once your contract is signed, everything is set in stone and there is no turning back.
- Black & White
Legal money lenders will never fail to take a step-by-step approach to ensure that you have complete understanding of what you’re signing up for. Things like the terms and conditions of the contract have to be thoroughly inspected before the contract is signed, after which a copy will be handed to you to keep. In any case that you’re required to sign incomplete documents, it’s probably a good idea to abort the transaction altogether.