There may come a point in time, probably when unforeseen circumstances arise, where you find yourself stuck in a financial rut. In times of financial need, there are many platforms you can turn to for quick financial relief. However, if you are looking for a solution that is fast, affordable, and legal at the same time, a licensed moneylender might be a good option for you that ticks all the boxes. In this article, we will share some important things you should know before you apply for a loan from moneylenders with a money lending license in Singapore.
How to identify a licensed moneylender in Singapore
The first thing you should do before applying for a loan is to make a list of moneylenders you wish to borrow from, then take time to find out if they are legal. You are strongly advised to visit the moneylender’s website and verify it using the list of licensed moneylenders found here on the Ministry of Law’s website.
There have been increasing cases of scammers posing as licensed moneylenders to solicit victims’ personal information for unlawful purposes. A licensed moneylender with a money lending license in Singapore is not allowed to solicit for loans via text messages, calls, or social media. They are required to adhere to the guidelines under the Ministry of Law.
Prohibited practices for a licensed moneylender
If you are still unsure, here are some practices a licensed moneylender in Singapore is prohibited to carry out. If you spot any of these red flags from your shortlisted list of moneylenders, you should avoid dealing with them.
- Using abusive or threatening language
- Fishing for your SingPass ID or password
- Failing to return your important personal identification documents such as NRIC and passport
- Asking you to sign a blank or incomplete contract for the loan
- Approving your loan without explaining the terms in detail
- Failing to provide you with a copy of your loan contract
- Soliciting for loans via text messages and phone calls
Fees that a licensed moneylender can charge
Under the Moneylenders Act, the maximum interest rate that a licensed moneylender in Singapore can charge is 4% per month based on the borrowed amount or late interest from a late payment.
The interest rate should be computed based on the monthly outstanding balance of the principal remaining after deducting the payments made. For instance, if your loan amount is $10,000 and you have already paid $5,000, then the 4% interest rate should only be computed for the remaining $5,000.
A licensed moneylender may also impose other fees such as loan approval fees or legal costs incurred by the moneylender to recover their loans in the event that the borrower fails to make payment.
About Galaxy Credit and Investments Pte Ltd
Galaxy Credit and Investments Pte Ltd is a legal moneylender with a money lending license in Singapore, certified under the Ministry of Law. If you are looking for safe and quick access to loans, rest assured that our team of friendly and experienced loan officers has got your back.
To apply for a loan with us, you should be:
- At least 21 years old and have a stable source of income
- A Singaporean, PR, EP, or S-Pass Holder
- Able to provide proof of identity (e.g. Singapore IC or passport)
- Able to provide proof of income (e.g. payslips, monthly bank or CPF statements, latest Income Tax Assessment Notice)
For further inquiries about our company and loan options, feel free to get in touch with us here today.