Whenever you need extra funds for your emergency expenses, the best thing to do is to deal with a legal licensed money lender in Singapore instead of gambling your time, energy, and money and choosing a random lender without a valid business license. There are several horror stories from people who have failed to do their homework during their search for a moneylender, and they ended up suffering the consequences of such action. This is why if the time comes that you need to borrow money, you should make it a point to choose the lender you work with to spare yourself from massive headaches along the way.
Below are among the benefits you can expect from a licensed moneylender in terms of the application process and receiving your money once you are approved of a loan.
1. No Harassment Involved
Only a legal and licensed money lender can offer you an efficient and stress-free experience during the time you submit your loan application form, the waiting period when reviewing your documents, and the final stage of receiving the feedback and signing the loan contract. There are also no issues with harassment since they abide by the IPTO’s rules when it comes to how they conduct their business. You cannot expect them to overwhelm you with unreasonable means of advertising or even their way of soliciting loan payments from you.
Keep in mind that licensed businesses in Singapore are subject to rules and guidelines set by the government. Thus, if they do not comply with these standards, they run the risk of being penalized by authorities since there are always legal consequences for their actions. For instance, their license may be revoked, and they are also subject to massive monetary fines if they fail to practice their business in a legal manner. So, if you want to avoid harassment from any business, the best thing to do is to always deal with a licensed and legitimate moneylender that provides you with reasonable interest rates and loan repayment scheme.
2. Interest Rates Must Be Reasonable
Illegal moneylenders are known to their massive interest rates and unreasonable repayment schedules. Moreover, if you do not meet the designated payment date, you run the risk of having to pay high penalty fees and perhaps even go through some threats from the lender. This is why the whole experience may seem very difficult for you.
On the other hand, a licensed lending company in Singapore is registered and recognized by the Registrar of Moneylenders in the country. This is why they are required to comply with the rules and regulations when it comes to interest rates and schedule of payments. There is also a limit to the amount their can lend, which depends on your income. So, by dealing with a licensed business in the country, you can be sure that the fees are according to the legal standards.
3. No SMS Advertisements
Nowadays, businesses make use of all sorts of techniques and tools to spread the word about their products and services. In the case of lending companies, they may send SMS or call potential clients to give them more details about their business. But be aware of the fact that only illegal moneylender perform this tactic. They may send out text messages that entice people to loan money from them, yet there is no way for you to visit their office because they operate without an actual physical retail store. (You may also read on: How to Block SMS From Loan Shark)
Licensed moneylender in Singapore do not perform such acts. The IPTO sets standards on how these businesses should advertise or communicate with their clients, and there needs to be a physical office that you could visit instead of simply exchanging texts with the business. If you ever receive such SMS advertising about their lending company, you can always report the number to the IPTO as this is clearly a violation of the Money Lenders’ Act.
4. Illegal Means of Accessing Your Personal Details
The SingPass login is unique for each individual in Singapore, and this contains sensitive and personal details about the person. But sometimes, illegal lenders try to gain an access to your SingPass login by requiring you to give to them the details over the phone. They may tell you that they want to verify your employment records and income status before they approve your loan application.
While it is true that these pieces of information are essential before you are approved of a loan, you should never divulge details about your SingPass over the phone or even through text. You will need to visit the lending company’s physical office and provide them the information in person. This is how verification checks are conducted and never remotely done. Once you have undergone such review, only then can the lending business can determine your eligibility for a loan.
So, if there is no actual office that you can visit since information about the lending company was only transmitted through SMS, then you should start to worry. There is no point in even considering the possibility of taking a loan out with them since to begin with, the company is not licensed and legal to operate its business. You should always look for a moneylender with a valid and updated license, registered landline, and a physical office where you can go to when verification or personal information checks need to be done. Otherwise, look elsewhere if the lending company cannot provide you with these details.
5. Efficient Means of Taking Out a Loan
With a licensed lending business, you do not have to put yourself through a lengthy waiting period before the loaned amount is given to you. In a matter of days, you should be able to receive your cash once the application is approved. Since all you need to do is to submit required paperwork, this eliminates the tedious process involved with bank loan applications. You do not even have to worry if your credit history is less-than-perfect since this aspect will not be focused on thoroughly. This is the main difference that licensed moneylender have from banks. If you may $30,000 per year, your loan application should be approved quite easily, too.
6. Loan Scheme Applies
When you borrow money from a licensed lender, you are guaranteed of a specific amount you may qualify for based on your income. As there are standards followed by these legal companies based on what the IPTO has set, then you can have an idea on the total amount you may be able to loan including the interest rates.
One example is if you make over $30,000 each year, the money you may loan may be a maximum of 4 times your monthly salary. There will also be a 4 percent monthly interest rate on top of the loaned amount, so you can determine how much exactly you need to pay for your loan. The lower your income, the lower the amount of cash you can borrow.
These are just some of the things you have to take note of before you apply for a loan from a licensed moneylender. For the most part, you need to make sure that you only deal with a licensed business. Thus, make it a point to consider the features that separate a licensed company from an illegal one. By doing so, you will have a smoother and worry-free transaction during the loan application and repayment processes. After all, you do not need additional weight on your shoulders while you are dealing with a financial issue in your life.