When it comes to loan sharks. The best advice is ‘do not transact with them’. These are unlicensed lenders who offer very high interests. Mostly they turn to threats and pressure to frighten borrowers who cannot repay their personal loan. These lenders are not licensed thus they transact illegally.
Here are several tips on how to deal with loan sharks.
Seek Financial Advisers’ help
It is advisable that you consult a legal financial adviser for lending concerns. In doing so, you avoid dealing with a loan shark. You will also know better ways of borrowing money from the loan advisor. Always remember that taking loans is not bad. Provided that you know where to get personal loans. Also, know how to manage the loan money.
Confirm The Legitimacy Of The Lender
It is recommended that you confirm the lender’s legitimacy. Recognize that many loan sharks present themselves as licensed lenders. But with an extensive investigation, they turn out to be illegal. Always ensure that you identify if the lender is certified. They should also have lending licensed issued by the government. When these are lacking. This raises a red flag thus it is best you stop all other transactions.
However, when you already have taken a personal loan. Then you find out when it is too late that your lender is illegal. You could still leave this situation unharmed.
The first thing to do is to remain calm. Avoid showing the loan shark that you know of their efforts of victimizing you. You could risk getting yourself into more problems.
Report Illegal Lenders To Proper Authorities
The dealings of loan sharks go against the Singaporean law. Therefore the next logical move is to report them to the relevant authorities. Let them know who the illegal lender is, and ways that they operate. If you hold records of the past transactions made with a loan shark. It will help with the investigation process. Ensure that the authorities know everything you know about the loan shark.
Report Any Continued Pressure And Threats
It is probable that the loan sharks will resort to pressures and threats. Even then, do not yield to the threats. Instead immediately report them to the proper authorities. This will further help your case. This is because any continued threats may be used against them as evidence.
Stop Making Further Payments
Immediately after reporting your situation to the right authorities. It is safe for you to stop making further payments for the debt. Since loan sharks are transacting illegally. It implies that they have no right to receive payments or lend money to debtors. Ensure that you know the law and your rights as a borrower. Then use this against them.
Benefits Of Dealing With Licensed Moneylenders
- The approval of your application is fast.
Each time you transact with licensed moneylenders. You will be required to fill in and submit your online application form. You will also have to submit the basic documents. This will allow the lender carry out checks. This will include your income level, the employment status.
They will probably check for existing loans and credit card debts with other lenders. These will affect the chances of your loan being approved. However, without extensive checks on your credit score. In submitting all the required documents upon application. It will help facilitate the loan approval loan much faster.
- You get the loan amount you require with minimal paperwork
When you are dealing with licensed moneylenders. You do not have to worry about whether you meet the requirements or not. The wait is normally not that long. Usually, it will take several few days. This is from the day you submit your application.
Until the time you get feedback from your lender. From there, you will only need to sign the agreement. Of course, after you have read and understood it. This will help you get the personal loan money.
These steps are convenient and fast steps that you have to do. As you are applying for loans from licensed lenders in Singapore.
- There is a physical office that you can go to
When a lender has an actual office that you can visit. Especially when you have some concerns about your loan. This gives borrowers a comforting feeling. The licensed moneylenders also have registered landline. This you could also use to contact them. This also will also help you know that the lender you are dealing with is legitimate.
You should look for the presence of a registered landline and an office. These are some of the things that you need to look for. Each time you are looking for a legal lender in Singapore.
- You know of the maximum loan amount, interest rates, and payment schedule
Every time you consult authorized money lenders in Singapore. You do not have to guess the amount you can access. Or wonder about the interest placed on the principal amount. The legal lender will notify you of these details in advance. They will let you know the loan amount you can access. This is based on your yearly income.
With this information, you are able to plan for the loan repayment. This way you will not face unpleasant surprises. More so during the time for settling the debts comes. This allows for you to even prepare a working budget. Thus making the loan repayments convenient for you.
- The loan contract contains all the details about the loan
Each time as you take out a loan. Ensure that you get a written loan agreement. This agreement is a document that you can retain. Just in case your lender asks you to give some amount which is not included in the agreement. It is advisable that you make sure that you review the loan details.
Also, take time to read the contract before signing it. This is because once you sign, it means that you accept. You need to only sing a loan contract when you are satisfied with all items indicated. Therefore, you need to know what is in it before blindly sign it.