An emergency situation can happen anytime without a warning. And even then it may be that you have little time left to get some loan money you need. How can you then borrow and avoid making loan mistakes in such a situation? Before deciding to work with any moneylender, be sure to do thorough research and compare deals offered.
When it happens that you cannot access banking services (either because you are unbanked or under-banked). Also, it could be that you do not hold a good credit record. What can you do then? Working with a licensed moneylender can be a good option for you as they are prepared to lend you some cash provided you meet their requirements.
Since Singapore has different types of lenders and each claims to offer low interests. What can you do so as to find the best lender to help you with your finances? Since there are many moneylenders in the country, how can you avoid making loan mistakes?
Here is a look at how.
Do Not Disclose Your Personal Details To Illegal Lenders
Usually, illegal moneylenders aim at getting your personal information by asking for your individual login details which could be misused. On the other hand, a licensed moneylender will just verify your personal details at their registered office without needing to know your private login details.
What does this mean for borrowers? This means legal lenders will check all your papers following set regulations and rules before offering you a loan.
Avoid Moneylenders With High-Interest Loans
Which lender is best for you? Getting loans from licensed moneylenders who adhere to the moneylender’s law or borrowing from illegal lending companies. Realize that unlicensed lenders offer higher interest which could somehow exceed the principal loan amount that you had borrowed.
So what is the best option for you?
Consider working to borrow from legal moneylenders who can help you pay the right interest amount which is actually suitable and you can afford.
Avoid Scam SMS From Illegal Moneylenders
What do you do if you receive numerous text messages from unlicensed lenders enticing you with their attractive deals? Sometimes you might fall into the trap of their illegal actions hence be careful while you borrow.
Realize that authorized moneylenders in Singapore will never send you any kind of e-mails or messages or even make voice calls so as to win you over.
What then can legal lenders do for you? They are likely to offer you loans and only when you approach them and have with you the necessary documents.
Do Not Make Oral Agreements
Always avoid making oral loan agreements. What kind of a contract should you go for? The loan contract you should accept needs to be complete and signed by the moneylender and the borrower before the loan money can be disbursed to your bank account.
As a borrower, you should realize that any form of oral agreement is not considered to be valid following the money lending rules. It happens that most illegal lenders offer incomplete or oral agreements, so only ensure that your lender gives you your copy of the complete and signed agreement.
Learn About The Lending Rules Before You Borrow
Usually, authorized Moneylenders will get you to keep to the strict lending procedures applied as set by the government. What does it mean when these guidelines are disobeyed? Disobeying the lending rules and processes is an offence that is punishable and could lead to the lenders going behind bars or get huge fines to pay.
Even most licensed moneylender will advise their clients to utilize their money properly by teaching each of them good money management tactics.
Why is this important for borrowers? As it will let you know all the legal procedures before borrowing so that you can consult a professional before taking the last lending step.
Why Should You Work With a Licensed Moneylender?
So, what are some of the advantages of taking loans with licensed lenders in Singapore?
- Customized Solutions
This is among the many benefits of getting loans offered by legal moneylenders in Singapore. As a borrower, you can rest assured that this type of lender will provide you with customized loan options. These loans are tailor-made to fit your different financial needs examples of these include payday loans, instant personal loans, SME business loan and foreigner loans.
In Singapore, most licensed moneylenders are a lot flexible when it comes to their loan terms. Is this different from other money lenders? Sure, legal lenders have less strict requirements compared to those of banks when they are offering loans. This makes loans more accessible to more Singaporeans.
- Nil Collateral And Credit Record Needed
This is probably the biggest advantage of dealing with licensed moneylenders as they don’t require any security. Additionally, your credit record is not needed for them to offer you a personal loan. What then do legal lenders consider before offering you a loan? These lenders only consider your current capability to repay your loan after confirming that you are a risk-free borrower.
- No Salary Restriction
Usually, licensed lenders will offer loans to borrowers without using the income limits process of allocation loan funds. In doing so, these lenders can offer loans which are different from what most banks and other money lending organizations do.
- Easy and Fast Transactions
Legal moneylenders in Singapore are recognized for processing personal loans fast and that they will offer you the loan amount requested. How fast is the loan processing? It is usually within a day after submitting the required documents or even possible to have same-day loan approval, especially for the cash loan.
- Minimum Documentation Required
Licensed moneylenders in Singapore often require minimal documentation in order for them to process your loan application. Is this good for borrowers? Certainly, as you will be able to fulfill the requirements with ease.
Avoid taking personal loans from illegal lenders who later turn out to be loan sharks. You should be cautious as you seek a loan since there are many types of lenders and some can ruin your finances with the strain of heavy interests.
So how can you avoid these pitfalls? It’s always safer borrowing from legal lenders rather than from illegal lenders.