April 18, 2024

How to stay safe from illegal money lenders?

 

Numerous criminal money lenders pose as legitimate lenders who offer 24-hour loans. Keep in mind that Singaporean law only applies to licensed money lenders. As a result, licensed money lenders are required to follow certain rules.

Here are some methods for telling a legal money lender from an unlicensed one.

  • Your loan contract’s terms and conditions

Before you sign the contract, a licensed money lender in Singapore must go over the terms of your loan with you. Loan contracts outlining all terms and circumstances are mandatory. These terms cover things like your loan’s repayment time, payment options, interest rates, and other specifics.

On the other hand, unregulated lenders frequently do not provide contracts. They could even send you PDF documents for a deposit before the approval of the loan using WhatsApp or SMS.

Do not fall for that trap; it is a part of their lending deception. There are no fees to be paid before a qualified money lender grants a loan. The best money lender in Singapore will never spam you, and to find one you can do a little research and reach them easily.

  • Interest rates and late payment percentages for Singapore’s moneylenders

According to rules established by the Ministry of Law, licensed money lenders are only permitted to charge monthly interest rates of up to 4%. A licensed money lender may only assess a late interest rate of up to 4% per month if a borrower defaults on the loan.

  • Commercial Channels

Only websites owned by the licensed money lender, business, or consumer directories and advertisements posted inside or outside of the business location are permitted for licensed money lenders in Singapore to offer their services.

Any adverts you see on other platforms could therefore be for illegal money lenders or for licensed money lenders who have broken the law. Be cautious if you receive an SMS offering you inexpensive, quick cash loans in Singapore. Do not even consider borrowing from them only out of convenience. At the end, you will be left with disappointment and there will be no money in your hand and increase more of your problems.

These are unlicensed loan sharks who are with many illegal ways trying to fraud you. Do not even consider asking them for a loan just because it would be handy and they are being helpful at the proper time.

Furthermore, dealing with shady lenders can be a genuine nuisance.

 

Plagiarism report:

https://smallseotools.com/plagiarism-report/9c9d6d8b91a7ef17a1069c7e1e11bb7c