Licensed Moneylender Singapore- What You Need to Know
If you have ever been through a financial crisis, you have considered borrowing from a licensed moneylender Singapore.
Usually, in Singapore, every borrower has three alternatives: family and friends, banks, and licensed moneylenders. The banks can provide a more significant sum of money with lower interest, but the process is like going through a maze. The licensed moneylenders provide easier, more accessible alternatives, but with their own rules and conditions.
However, before borrowing, you need to know all the minute details. How do you know that you are borrowing safely and wisely?
Therefore, in this post, we’ll explain all you need about licensed money lenders in Singapore.
Is the Moneylender Licensed?
The Ministry of Law maintains a public listing of all licensed moneylenders in Singapore. Before you sign a contract, take a couple of minutes to cross-check the name that the company provides against that list.
Loan Limits and Interest Rates
The main advantage of borrowing from a licensed moneylender Singapore is that everything is capped and regulated. For example, the maximum depends on annual income for personal unsecured loans. So, if someone makes less than $20,000 a year, the borrower can receive as much as $3,000. The higher-income brackets can give you up to six times a month of one’s income.
The interest rates are also strictly regulated. Whatever your income, the licensed moneylenders cannot charge you more than 4% monthly. If you cannot pay in due time, late interest shall not exceed 4%. This way, your debt cannot get out of control as it could when it involves loan sharks.
There is also an administrative fee that can’t exceed 10% of your loan principal.
The Loan Agreement
The licensed moneylenders must clearly explain the conditions before giving any money. That should be given to you in written form, describing how often the money has to be repaid at what rate and how much extra is added as a fee. That is your protection because if you have asked questions, they must not seem unclear and too complex until then, and you can walk away from them.
Notably, the general rule of thumb is that if the lender is in a rush for you to sign without going through the contract with a fine-tooth comb, that’s a bad sign. Legitimate lenders are all about transparency, and they, more than anybody, understand that an informed borrower is much more likely to pay them back on time.
What Happens if You Can’t Pay Back?
Life is full of uncertainties, and not all repayments occur precisely according to the plans. One may approach the lender in case of hardship with an explanation as soon as possible. Every licensed money lender has stern rules not to harass their debtors. Instead, they shall negotiate some other plan that will suit your case.
Borrow Responsibly
Apply and get a loan only when it’s really necessary and unavoidable. Mainly, loans fill in the gaps in finance but are not a persistent solution to be used for continuing difficulties. Therefore, apart from absolute need, only take a loan when you know how and approximately when you can repay it.
Conclusion
Understand your rights given the law, and with that knowledge, you can confidently borrow with a guarantee that your rights are guarded by law.
Lastly, at Credit Empire, we are committed to ensuring you get the much-needed financial boost through personal loans. Therefore, if you need a loan or have queries, you can always contact us. We will not only offer you financial advice, but we will also offer you a loan with favorable terms.