In Singapore, there are various types of financial institutions that offer financial services. A moneylender is an organization or a group of people who have a clear mandate to offer moneylending services. Moneylending entities make small personal loans accessible to individuals who have a limited access to banking institutions. Depending on your financial obligations and needs, the choice of a reliable moneylender in Singapore is very important. Different money lending institutions offer different financial loans.
Singaporean money lending institutions are licensed by the Registrar of Money lenders and are bound by rules and regulations that ensure they follow all moneylending and financial institutions laws. Moneylenders in Singapore are given a limit on the highest amount of money they can lend to individuals and the interest rates to charge.
Moneylenders should also have a clear loan application process as well as offer its customer all the necessary information they need before taking any loans. Borrowers are advised to take loans from licensed money lenders and to ensure their loans forms show details like the loan repayment period, the interest rate, repayment schedule and the legal undertaking when the borrower defaults.
The Past Stigma From Borrowing From Moneylender
In the past, moneylenders were believed to have been charging borrowers very high-interest rates. Some also were for the idea that moneylenders were only taking advantage of people by making the repayments made to only offset the interest on the principal amount taken. In the past money, lenders were thought to be too quick in hiring debt collectors; the debt collectors are known for the tactics they use that are mostly aimed at embarrassing and eventually affecting an individual s career prospects.
However, a lot has changed in the recent past. Moneylenders are now recognised by the Singaporean Registrar of Moneylenders, for their financial services they offer to individuals and are issued with licenses before they start their operations.
Rules and regulations have been put in place to help govern their operations, therefore, ensuring they are at par with the other existing banking and financial institutions. Interest rates have been regulated by the maximum amount they can lend out has been set.
Transparency of the loan process has been put in place and money lenders are required to give borrowers all the necessary information they need to ensure there are no hidden charges.
How Moneylenders Work
After you have identified a moneylender, it is necessary you go through the loan application process. The loan application is simple and can be done in person at the lender’s offices or online through their platform. What you require as a borrower is to present relevant personal information like contacts details, current payslip, employment status and all the supporting documentations that the lenders need before processing your loan application.
With the proper documentation, your personal or payday loan will be approved immediately in a matter of minutes.
Licensed moneylenders have a variety of loan packages that they offer potential borrowers. Loans that can be accessed through the money lenders include payday loans, personal loans, foreigner loans as well as other choices that will suit your financials needs.
Do Your Homework And Research To Find The Most Suitable Moneylender
Before taking any loan, ensure to shop around for the most suitable moneylender for your financial needs. Read through the interest rates and penalty clauses as well as any other additional fees to be familiar with what you are getting yourself into before signing. Ensure you are able to make regular loan repayments on the agreed upon date to avoid defaulting charges.
Be sure to check the validity of the money lender’s license to confirm they are registered under the Registrar of Money Lenders. Ensure you understand the stipulated terms of the loan application form and when uncertain ask for clarification on the terms and details of the loan.
Consult a lawyer to help further explain the consequences of defaulting that you may face. When the terms are not satisfactory to you, you can opt to work with a different licensed lender who offers the best loan terms to meet your needs.
- Protect Your Rights (Know The Legal Interest Rates They Can Charge)
Borrowers are cautioned to first confirm the interest rates being offered by the accredited money-lender before settling for a payday loan or a personal loan. This will help when you are comparing guideline and rates to help pick the terms offered, that best meet your financial situation.
- Pick Someone Who Does Not Sell You But Genuinely Wants To Help You
Pick a moneylender who offers you the lowest possible rate, and a convenient repayment period. The repayment amount should also be affordable for you and not cause you more financial strain.
- Ask Around For Recommendation
The Ministry of law keeps an updated list of the licensed money lenders in Singapore, which is a good resource when you are shopping around for a suitable moneylender for your financial needs. These institutions hold legal and updated licenses as stipulated by the Registrar of Money Lenders.
- Approach A Few Moneylenders Before Picking The Best One
Approach a few moneylenders and, compare their interest rates they offer to help you pick the one with the most favourable terms to fit your budget.
- Person Serving You Should Go Through Terms And Conditions As Well As Work Out The Interest Rates In Front Of You
Ensure the person handling your loan application clarifies for you the conditions and terms of the loan you are applying for. Let them also go through how the interest rates have been worked out in front of you. This way you will confirm the rates offered and the repayment period based on the calculations hence no room for hidden charges.Ensure you understand your needs, terms, and conditions of the loan contract before signing it. Bear in mind you are duty-bound by law to honour terms of the contract once you sign.
Moneylenders in Singapore are an alternative access to fast cash for individuals who are unable to get loans from banks. Reliable moneylenders in Singapore ensure after receiving all the required documentations, your loan application is approved within minutes. These institutions ensure fast cash is availed to you to help resolve your financial emergency, thus giving you peace of mind.
Before applying for a loan from any moneylender, ensure you do your research and shop around for the moneylender, who will offer you the best rates in the market as well as a comfortable repayment period without straining you financially.