No matter what you need to use your loan for, it’s always better to take loans from licensed
money lenders because this will provide you with the most peace of mind in the long run. If you
are not familiar with how to tell the difference between reliable money lenders in Singapore
as opposed to their unlicensed counterparts. Read our simple guide to figure this out and keep
yourself financially safeguarded!
Tips on how to Spot a Legal Money Lender in Singapore
● Legal money lenders will explain the loan terms clearly in a language that you understand.
● They will always make you sign a contract that includes all the details surrounding the
loan you are taking from them.
● The licensed moneylenders won’t be able to charge more than the market i.e. the rate
set by the Singapore Ministry of Law.
● You can see a complete list of licensed moneylenders on the Singapore Ministry of Law
website, so do double-check that.
● They are obligated to have a physical office, unlike illegal money lenders that can
operate off their phones.
● Legal money lenders should never coerce you to make your repayments in any
harassing or abusive styles.
Now that you can tell the difference between the licensed money lenders and illegal ones in
Singapore. And now we will look at the top five reasons why you should only borrow money
from licensed moneylenders in Singapore.
Why borrow from Licensed Moneylenders in Singapore
No matter what the amount is, you should always choose the licensed money lenders over
illegal lenders. The tricky part comes when these unlicensed money lenders try to offer you
seemingly attractive loans that other financial institutions can’t. But that’s only because they
operate outside of the mandated laws, and in the long run, these agreements turn sour, which
leads us to our first point.
Avoid harassment
You can avoid the harassment from the illegal money lenders that may cause you a lot of
trouble and distress in the future. Licensed money lenders in Singapore follow a very strict set of
rules set by the government and cannot break them, so you can be sure that whatever you’re
agreeing to comes with ample safety and stability.
Interest rate
They cannot charge over a certain amount of interest rate from their borrowers as there is a
mandated maximum rate imposed by the Singapore government. This way you can avoid
exorbitant high-interest rates from illegal lenders.
Spam
You can also avoid spam SMS messages from the illegal moneylenders because a licensed
moneylender cannot send an SMS to the public without authorization.
Processing
The processing of the loan from licensed money lenders is considerably faster as opposed to
the banks and other financial institutions. There are times when your application is processed
the same day as you apply for a loan.
Your information will be protected
Licensed moneylenders are forbidden from sharing your information with advertisers and that is
why you can rest assured that your information will remain protected, especially considering the
sensitive nature of the information you’re sharing.
Be Financially Safe with Licensed Money Lenders
No matter the financial strains you might find yourself in, never compromise on your safety. So
remember, always do your checks before signing with a money lender! Some of the tips we’ve
mentioned will help you quickly and easily identify a legal money lender, but if you’re still feeling
unsure, just give us a call at either of our hotlines; (+65) 62244746 (Yishun) or (+65) 62244749
(Tampines), and we’ll help you along in your loan process!