Without a doubt, Singapore is one of the most expensive countries in the world. Whether you are going there to visit, to study, or to work, the costs and expenses of living in Singapore are high. Without the right financial plan and budget, it can be difficult to save money for emergency purposes. If an unfortunate incident will occur and you need someone to loan you money, then there are licensed moneylenders in Singapore.
Fortunately, the Singapore Government has regulated the practice of moneylending. However, finding a safe and reliable moneylender who can satisfy your financial needs can be difficult. You may be left questioning on how you can find a safe moneylender in Singapore.
If you are looking for a safe and reliable moneylender in Singapore, then here is a checklist that can help you out. Remember to research before you choose your potential moneylender.
CHECKLIST # 1 – Is their business licensed and registered?
One indication of a safe and reliable moneylender is that the business should be registered and licensed. Licenses and registrations can help protect you from loan sharks who may threaten you with high rates of interest. It is important to note that loan sharks are dangerous because their practice does not conform to the rules set by the Ministry of Law in Singapore.
CHECKLIST # 2 – Is the license updated and on the Registry of Moneylenders?
Even if the moneylender has a license, then you should check the moneylender’s license number. The moneylender should have a license number that is updated and is recognized by the Ministry of Law. You can check if the moneylender is on the Registry of Moneylenders in Singapore. If it is not on the registry, then you should find another moneylender.
CHECKLIST # 3 – Read customer reviews and ask for references
It is important to note that not all licensed moneylenders can provide good customer service. In addition to licenses, customers’ reviews and references can help you find a safe and reputable moneylender. If you have someone you know who has made a foreigner’s loan in Singapore, then you can ask that someone for reference.
Another way of assessing the reputation of the moneylender is by reading customer reviews. Through the use of online reviews, you can be informed about the credibility and professionalism of the moneylender. Also, by reading customer reviews, you can assess whether or not the moneylender can satisfy your financial needs. However, it is important for you to make sure that the reviews are legitimate and unbiased.
CHECKLIST # 4 – Does the moneylender show professionalism when dealing with customers?
When you have the chance to talk to moneylenders personally, then you have to take note of how they will treat their customers. According to the Ministry of Law in Singapore, moneylenders should not be discourteous or threaten their customers. They should not force their customers to make a loan transaction with them. If they threatened you or violated any moneylending practice, then you can make a report to the proper authorities. You should also note that moneylenders are not allowed to call or to text you. You should not respond to their calls or texts, as some of them might be unlicensed.
CHECKLIST # 5 – Do they follow the right protocol?
A professional moneylender should not grant you a loan if you do not have the proper and complete paperwork. Also, a safe moneylender should be able to explain the terms and conditions of the contract clearly. At the same time, the moneylender should have the diligence to follow the proper procedure to avoid offenses. Lastly, the moneylender is not allowed to retain personal identification cards like your driver’s license.
CHECKLIST # 5 – How does the moneylender advertise his or her business?
Moneylenders may advertise interest with low rates. However before you consider the advertisement, you should know that moneylending advertisements are regulated. Consider how the moneylender advertises his or her business. By doing this, you can assess whether the moneylender follows the regulations or not.
According to the website of the Ministry of Law, licensed moneylenders are only permitted to advertise through a website owned by the moneylender, online or printed directories, and advertisements that are posted within their place of business. If the moneylender advertises through a call or message, then you have the right to disregard and to report them. These kinds of moneylenders may have no license and can scam you with high rates of interest.
CHECKLIST # 6 – Avoid loan sharks
Unfortunately, loan sharks still ignore the laws that were set by the Singapore Government. Loan sharks are notorious because they use threats and violence to make the customer pay the loan. They are also known for charging interest rates that are significantly higher than what is allowed. They often target foreigners who have no prior experience in making a foreigner loan. Thus, you should only transact with moneylenders who are licensed and are professionals.
A Note to Remember
It may be best for you to compare different moneylenders who can give you the best interest rate. You have to take note that the interest rate will vary from one moneylender to another. Some moneylenders will offer you an interest with low rates but may have additional charges. Thus, it is best for you to read the terms and conditions that your moneylender will offer.