Licensed moneylenders provide a range of services for borrowers. They are regulated by government authorities and follow strict rules to safeguard their borrowers. They also offer competitive interest rates and a variety of loan products.
Licensed moneylenders are required to charge an interest rate of no more than 4% per month. They also must impose a one-time administrative fee and monthly $60 late fees.
They are regulated
Licensed moneylenders are legally permitted to lend a certain amount of money to consumers. Unlike Ah-Longs who spray O$P$ on walls, these money lenders are regulated by the law and follow strict rules and regulations regarding their loan-related activities.
Depending on their policies, licensed moneylenders may offer flexibility in the repayment terms of a loan. However, it is important to ensure that the changes are formally documented in the loan contract. This will avoid any misunderstandings and confusion in the future.
It is also advisable to compare the services of different licensed moneylenders before applying for a loan. A reputable licensed moneylender will check your financial status and credit score before providing the loan. Moreover, they won’t pressure you to take out the loan. By contrast, unlicensed moneylenders often resort to threats and blackmail to force you into repayment. This can create a stressful situation for you and your family members. Licensed moneylenders, on the other hand, cannot threaten you or your loved ones and must comply with the laws of Singapore.
They offer a variety of loans
Licensed moneylenders offer a variety of loans, including personal loans and business loans. They can also renegotiate your repayment schedule and lower the monthly payments to make it easier for you to repay the loan. They also offer debt counselling services to help borrowers manage their finances and get out of debt.
Unlike the Ah-Longs you may have heard of spraying “o$p$” on walls, a licensed moneylender is restricted by law to only charge reasonable fees and interest rates. Furthermore, they are not allowed to harass you in any way, and can only follow legal procedures to recover the money if you fail to pay back your loan.
You can check a licensed moneylender’s registration number on the Ministry of Law’s website. The website also contains a list of licensed moneylenders that you can use to verify their identity. The online application process is simple, and most licensed moneylenders will check your documents within a day.
They don’t pressure you to take out a loan
Licensed money lenders do not pressure borrowers into taking out a loan. They have to comply with government guidelines and they cannot charge excessive interest rates. They also have to follow strict rules regarding the amount of collateral they can require for their loans. Unlike traditional mortgage systems or banks, moneylenders can create a flexible repayment plan for their borrowers.
Moreover, they can make the process of applying for a loan much easier. Licensed moneylenders can also offer competitive interest rates and a variety of products to meet the needs of their borrowers. They also have a shorter application approval process than banks.
Be wary of moneylenders that use high-pressure tactics or ask for personal information without any clear reason. In addition, check that they have a license before engaging them. Ensure that they are transparent with their fees, and provide you with a clear contract before making any agreements. Also, be sure to pay your loan repayments on time to avoid late payment fees and penalties.
They have their license posted in their office
Licensed money lenders are regulated entities that operate within the rules and regulations set by the government. They cannot advertise their services outside of permitted channels and they are prohibited from using threatening or abusive language in their communications with debtors. Unlike loan sharks, they are also not allowed to spray “O$P$” on the borrower’s front door or incessantly call or text the borrower.
Unlike traditional banks, licensed moneylenders offer more flexible terms and a streamlined application process, making them a good choice for people who need urgent cash. Additionally, they offer a lower income eligibility requirement, giving more people access to funds.
Licensed moneylenders also have their license posted in their office, which makes it easy to verify their authenticity. If you notice that a particular money lender isn’t following the rules, it’s best to avoid them. In addition, they shouldn’t contact your friends or family to discuss your loan. This can be considered harassment and is against the law.