The popularity of licensed moneylenders in Singapore is soaring. However, it’s only noble to ask yourself: are these lenders all they’re cracked up to be? Well, the answer is YES. From proper business ethics, affordability to loan security, the benefits of using a legal lender to obtain an instant loan know no boundaries. If you’ve reached a tough spot in business, or need some quick cash to escape an emergency, here are five reasons to use a licensed lender as you borrow money in Singapore.
Unlike Banks, Licensed Moneylenders are forgiving to Foreign Borrowers
Singaporean banks are famous for putting up high walls to exclude foreign money borrowers. As an expat, your chances of landing an instant loan from a local bank are slim, especially if you earn an annual income that falls below $45,000. This is because banks view your financial stability to be highly volatile, hence imposing doubts on your ability to pay. But fortunately, licensed money lenders in Singapore have their doors wide open for financially stranded foreigners. Most personal loan companies have specific loan classifications to suit anyone who is not a citizen. The basic requirements for qualifying for such personal loans in Singapore include:
- A full-time job
- A valid proof of identity
- Proof of income for the last 12 months
- Proof of address
It saves you From Unnecessary Harassment
Ever had a bad experience with debt collectors? Thanks to licensed moneylenders, you no longer have to worry about rude, abusive, and violent debt recollection experiences. Licensed lenders must carry out their activities with utmost professionalism and demeanor. For instance, it’s disallowed for a legal lender to mete out insults and physical harassment on money borrowers when collecting their payments. If you’re unable to repay your loan in time, all you need to do is contact the loan company, and they’ll help you adjust your repayment plan.
Unlike Traditional loaning options, their processes are Faster
Before the inception of licensed personal loan companies, money borrowers could endure rigorous processes to acquire loans. A typical loaning process would involve seeking guarantors, presenting a suitable asset as collateral, and signing an endless list of documents. Fast forward a couple of years later, and the process is less problematic. Licensed money lenders have made it far-much easier to borrow money in Singapore. The review process, especially document verification is smooth and fast; hence you can have your instant cash in under a day! “I need urgent money” – a phrase many of us have thought of, will get a solution quick – with this swift process through money lenders.
Licensed Moneylenders Can’t go Contrary to the loan Terms
Thanks to the regulatory body that governs them, licensed moneylenders conduct business with ultimate integrity. This means that it’s illegal for them to tamper with the loan contract once the ink dries on it. Also, Singapore’s government has placed a cap on the maximum interest rate that they can charge you. So while this rate is bound to vary depending on specific individual factors, it should not surpass 4% per month or 12% per annum. And when a loan official tries to unleash a loan contract that contradicts what you had initially signed, you can call 1800-722-6688. This is a unique line set aside by the Police and National Crime Prevention Council for scam victims.
Licensed Moneylenders have a Physical business Address
If you have doubts about a licensed money lender in Singapore, you can always visit their physical office for clarifications. Legal loan companies must offset contracts physically. This makes it easier to track down the loan officials in case you feel cheated. Physical presence also reinforces the credibility of any lender and sets them apart from loan sharks.
The Registry of Money lenders regulates them
Another reason to borrow money from a licensed money lender is that they don’t operate independently. The Registry of moneylenders acts as a watchdog that defines the scope of operation for lending businesses. As a result, you’re assured of the government’s protection if anything goes wrong. It doesn’t matter what your income status is, where you work, or whether you’re a citizen or an expat, any unfair treatment from a licensed lender can be battled out in court.
“I need urgent money.” If that thought sounds familiar, you now have six solid reasons to approach a licensed money lender.