The simple definition of money lenders is that they lend money to the people by charging high-interest rates. The reason behind charging high-interest rates is the risk factor that they take up since they do not require any collateral security deposit. For people who don’t have any security deposit or who don’t have any bank account, they can approach the money lenders. However, you need to look out for the licensed money lenders and the fraud ones. There are various fraud money lenders in Singapore. If you want to know all the licensed money lenders in Singapore, then you can check the list provided by the Registry of Money Lenders in Singapore. It has the full list of all licensed money lenders in Singapore. The basic thing you must do before selecting a money lender is to ask for their license number. Every licensed money lender in Singapore has been allotted a unique identification number. For More information
What are the ways money lenders can cheat?
There are various ways money lenders can cheat us. Some of them are:
- Moneylenders can cheat you through calling over your phone. This is the most common way of cheating. They will tell you to repay the loan which you would have never borrowed from them. They will also tell you that you will be in great trouble if you don’t repay it. The best solution for this problem is to report the matter to the police at the earliest. Never fall into their traps.
- Illegal Moneylenders will ask you to pay a certain amount of money as processing fees. They will tell you that the loan won’t be processed till you pay the amount. However, there are no such processing fees charged by the licensed moneylenders. Those who charge you are fraudsters. Report them to the police and spread the word of caution to others as well.
- Moneylenders can cheat you through advertisements as well. They would ask you to take a loan from them by charging a very high rate of interest. Illegal or fraud money lenders would operate through phone calls or the internet. It is always safe to go and meet the moneylender face to face. This will assure you that they are not a fraud one.
- Moneylenders can cheat you through SMS. Nowadays, whatever we search online, the recommendations would be somewhat related to it. So, if you search for the best money lenders in Singapore, they can get to know that you require money. They would message you to take a loan from them. Never do that. Always meet the person face to face and engage in the discussion.
- Licensed Money Lenders would have an office of themselves from where they would provide all their business services. Illegal money lenders would try to cheat you through online, calls and SMS. They don’t have any physical location. As mentioned above, always meet the moneylender in person and complete the final paperwork.
- Moneylenders would usually take up around 10-15 minutes for the loan approval (provided you have all the documents). Illegal money lenders would not look into all this. They will just ask you to sign on an agreement paper. Read all the documents carefully before putting a signature on it.
How to find licensed money lenders in Singapore?
Finding a licensed money lender in Singapore can be a very difficult task. Here are some ways to find them:
- Every licensed money lender in Singapore would have an office from where they would look after all the activities. This will help you in distinguishing the legal and illegal money lenders.
- As mentioned above, The Registry of Money Lenders in Singapore has the list of all licensed money lenders that currently operate in Singapore. This will help you in finding the best money lender in Singapore. Look out for the one which offers the loan at the least possible interest rate over all the other money lenders.
- No moneylender would ask you for your private details. If they do so, they are illegal or fraudulent organizations.
- Never share your bank account details to any money lender.
- Licensed money lenders would never try to extort money from you. Even if you are late in repaying the interest amount, they would provide you with some additional time.
- Moneylenders would never treat their clients rudely. If they do so, it would result in their loss. The clients can switch over to other money lenders available in the market.
Now that you know all the requirements for a licensed money lender and what sets it apart from illegal money lenders, look out for that. Read all the terms and conditions in an agreement carefully. It is better to clear any sort of doubt in front of the moneylender.