In this article, we are going to talk about how a person can identify a legal money lender in Singapore. Also, we will discuss why you should choose a legal lender and how to take a loan from them.
Why should you choose a legal moneylender?
When choosing a moneylender in Singapore, you must select a legal one. This is because these legal lenders are governed by the MinLaw, which is the Ministry of Law. A legal moneylender will understand all your financial problems and solve them very easily. While the illegal lender will try to scam, you can try to make a profit for yourself.
The illegal lender is also called loan sharks, and in Singaporean, it is called Ah Long. These loan sharks roam out there in the market and catch those people who want a loan badly. They will give them a loan of a high amount and will promise them less interest which is a dream for many people.
Many people fall for this trick, and they instantly decide to take the loan. That is why it is important to deal with a lender who is licensed in the market. So you know the importance of checking the status of the lender before taking a loan from them. To check these things, you will have to go to the official website of MinLaw to see the rules and regulations.
Then you can check whether the lender you are taking a loan from is legal or not. Legal moneylenders in Singapore are only allowed to advertise by giving out business cards and posters. They are not allowed to make direct contact with the customer either by email, call, or anything. If a lender tries to do such a thing, then it means that they are an illegal lender and a scammer.
How to take a loan from these lenders?
The process of taking a loan from these lenders is very simple and a common one. This is because the first step will be to identify the type of loan you want. This will be found out using the method for which purpose you want the loan.
Also, you will have to see how much money you need a loan for. After you have selected the loan, you want you can go to a lender and check if they have that loan or not. If they are offering that loan, you will have to ask them about the terms and conditions of the loan.
If these terms and conditions are much better than the bank or anyone else, you can take them. But another thing is that you have to ensure if they are approved legally or not. Then you will have to select the amount of loan you want and fill the application and give it to the lender.
They will then ask you for the documents which are necessary for the loan to process. Then after the documents are submitted and verified, they will then process the application. This means they will now decide whether to give them the loan or not.
Also, the process of approval and allocation will be done either in few minutes or an hour. This is because they give out loans to people much faster than that of a bank.
What are the tips for identifying a licensed moneylender?
Below given are some tips which anyone can use to find out a legal money lender in the market.
- A licensed moneylender is not allowed to advertise
This means that whatever happens, is the legal lender can never make direct contact with their customer. They can also advertise by giving out business cards and also putting up banners. This way, a lender will be able to maintain their secrecy and also their business in the market.
If you find a lender trying to give you a loan through SMS, email, or phone call, you should avoid them. That is because MinLaw has not allowed any lender to call people and tell them to take a loan. If you want a fast loan from these lenders, then you can take a personal loans which is given at a low rate and also very quickly.
- The licensed lender does not make money online
This means that a licensed lender will always call the borrower to meet them personally. That is because he or she will want to explain the terms and conditions of the contract to the borrower. That is why a licensed lender will never ask a person to make the payment of the loan online. They will take the payment face to face, so there is no kind of cheating between the two.
- They will never ask for information on call
First of all, the lender will never try to call you on your number. They will talk face to face. But if some lender calls you and asks for details of your SingPass, then you should cut the call. That is because a moneylender will never ask for the details of your payment account. Also, the illegal lender will try everything so that you take a loan from them.
- You should research before choosing a lender
This tells us that it is a good habit to research the lenders in the market to save yourself from any loss. This is a common thing as most people just simply read the terms and take the loan. It is a good thing to research the lender from which you are thinking to take a loan.
- You have to go to their office
A legal lender has its own physical office in which the borrower is called to sign the contract. While they meet, they will explain the terms and conditions of the loan properly. This will ensure that face-to-face meet-up with the moneylender is legal.
- They will call you through a registered number
If the lender wants to talk in private, then they might call you using a registered number. They will only tell you the place and also the time you have to meet.