4 Easy tips for landing legal loans in Singapore | Are you looking for the best legal loans in Singapore? This article gives you easy tips for separating legal loaning services from illegal loan sharks.
Money lending is a highly lucrative business in Singapore. However, finding a genuine Singapore loan company can be an uphill task. While you may need quick cash for an emergency, it’s very key to sort through legal means to acquire an instant loan. In this article, we have therefore discussed some fast and easy ways to land a legal loan in Singapore. Read on to find out everything you need to know to make the best decision for your loan application.
- Find a licensed moneylender
What can be more reassuring than being protected by the law? The Moneylenders Act defines a money lender as one who carries out or engages in the business of moneylending, whether in the capacity of a principal or agent to a money lending business. In Singapore, one can only be allowed to participate in the business of money lending legally by acquiring a license under the Moneylenders act of Singapore or if for some reason which must be proven, are excluded or exempted from the Moneylender’s act.
- Coming up with a list of licensed money lenders
The good news is, there is a list of licensed moneylenders provided by the ministry of law. The list provides a great starting point to begin the search for an instant legal loan in Singapore. Why is it crucial to go for a licensed moneylender? First, it will save you from inflated loan rates. The Moneylenders Act dictates the interest rates on different loans, i.e., Personal loans, business loans, medical loans, etc. The act also sets a cap on the penalties should one be unable to repay the loan in the agreed-upon time, therefore protecting customers from cruel debtors. The Moneylenders Act prohibits the harassment and intimidation of customers. You can therefore be at peace when acquiring debt, including monthly loans in Singapore.
There are many licensed money lenders, some of which we have reviewed already. Ensure you check the credibility of the moneylender by checking their experience. A company that has been in the market for a long time is more credible and trustworthy than a new entrant. You should also go through the customer reviews to understand how the company treats its customers. Customer reviews rarely lie. It’s also important to ask for references from people who have taken out loans from the company you are considering to get first-hand information about the company. By doing so, you will be able to take out a loan with a clear mind.
- Speak to a professional
While taking out an instant loan in Singapore can be stressful, a trusted professional can make it easier. A professional will guide you through the requirements for taking out a loan and help you understand the terms and conditions provided by the creditor. A trusted professional can also help steer you in the direction of legal loans in Singapore to ensure you choose a moneylender offering the best services. A professional in the field of money lending will also take you through the application process and paperwork when taking out a loan. You can either hire a legal professional or visit a licensed credit provider and consult with their professionals. Ensure you don’t go in blindly by consulting a trusted professional.
- Be on the lookout for red flags
It can be rather challenging to identify legal moneylenders and legal loan givers in a market flooded with thousands of moneylenders. Even when a business claims to be licensed, keep your eyes open so you can identify warning signs and run! If you see the warning signs we are going to list below, you need to think twice about taking that loan. Take a look.
- Requesting for your password/SingPass ID. Always remember that your password is your secret. A credible lending business would not ask for your password or pin.
- If the company grants loans without exercising due care, i.e. No procedures before receiving the loan and no papers or contract to sign.
- If the company is known not to return customers’ documents such as passports and debit/credit cards even after customers ask for them.
- The company or its agents threatens or uses abusive language towards you. That is a business you don’t want to associate yourself with.
- When you are given a blank document or contract to sign. Do not append your signature to anything you do not understand fully.
- You are not given the whole principal amount upfront upon completing the process. Ensure you are receiving at least 90% of the principal amount.
These are just a few fast and easy ways to land a legal loan in Singapore. Ensure you are dealing with a licensed moneylender at all times.