Singapore offers various moneylenders that will aid your financial difficulty in any situation, especially during emergencies that require instant cash on hand. But among all those, how do we differentiate the best money lender in Singapore from unauthorized loan sharks?
Here are some helpful indicators to identify illegal creditors:
Use Of Offensive Verbal Languages And Treatment
Illegal moneylenders speak and act impolitely to their clients. They behave in an unethical manner, shows that they aren’t inculcated with proper ethics and principles in dealing and addressing clients’ concerns. A credible Singaporean money lender knows that they are registered to serve the administration and its’ people. Thus, insulting and threatening borrowers will never be their kind of approach.
Retain Your NRIC Or Other Identification Documents
Unlicensed moneylenders trick debtors by retaining their credentials as a mortgage but use for their illegal purposes. Be reminded that IDs and personal documents should be in the possession of its owner. It can only be borrowed for verification purposes, but not retained even after the entire process. Here in Singapore, IDs are essential to validate your identity but do not conclude that the moneylenders are entitled to retain or use it for their agenda.
Inappropriate Communication Methods
Unauthorized lenders do not practice proper communications protocol with clients while trustworthy financiers contact you using their registered office landlines and addresses. Fake debtors do not use phone calls and business letter, but rather contact you through text messaging, e-mails, flyers, ads and the like. You should be suspicious of the reasons why would they address you using all those instead of the proper business communication.
Pressurize Affix Of Signature On A Blank Or Incomplete Loan Contract
One might think that these fake moneylenders are doing their job, and serving you in the fastest speed that they can. Be careful, you might end up in a loan that you haven’t even acquired or deal with terms that you haven’t understood.
Remember, licensed moneylenders, do their job in a step-by-step process. They make sure their clients understand a complete contract and review the details, including terms and conditions before signing on the dotted line. They also emphasize the amount, interest rates, and modes of payment for the possible loan, to avoid errors and future delinquencies.
Hence, read and reread loan contracts. Moreover, there should be two copies produced, one for the borrower and the other to the lender. Discontinue transactions once anyone asks you to sign any incomplete documents or had not given you any copy of the document you signed.
Grant A Loan With Incomplete Documents
Don’t ever call yourself lucky for approval that you know is impossible. This is a dubious act by an unlicensed moneylender. Loan processing carries on when an applicant completes necessary documents and proper screening is conducted.
Don’t be deceived by fast approval with incomplete requirements and documentations.
Hold Back A Part Of Your Borrowed Amount
After accomplishing all the documents and undergoing interviews, an unlicensed moneylender will hold a portion of your principal amount for any reason they would like to present. This is an unethical method done by an unlicensed moneylender.
Now that you know the differences between a licensed and unlicensed moneylender, don’t fall prey into the wrong hands. For a safer loan processing experience, search on our website for the licensed moneylender best suit your needs.
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