A money lender is a reputable institution that offers loans to individuals with low income or bad credit rating. Unlike banks, money lenders typically offer unsecured loans to individuals and do not require collateral. However, they may charge a higher interest rate than banks. The Consumer Credit Act protects borrowers from unreasonable terms and rates, so consumers should always shop around before taking out a loan.
Licensed money lenders are required to register with the Registry of Moneylenders and display their registration numbers prominently in their premises. You can also check their registration number against the list of registered money lenders on the Ministry of Law website. Furthermore, they are prohibited from collecting personal information like your SingPass user ID and password or asking you to sign blank documents. If you are unsure about a particular money lender, you can call their landline or visit their physical office to validate their authenticity.
While most licensed money Top Personal Legal and Licensed Money Lenders in Singapore Loans are reputable, there are some that are not. These unlicensed money lenders are known as loan sharks and they are notorious for their high interest rates, aggressive debt recovery tactics, and intimidating behaviour. If you are ever approached by a loan shark, do not respond to their requests and contact the police immediately.
When choosing a licensed money lender, you should select one that offers various types of personal loans such as renovation loans, personal loans, business loans and debt consolidation loans. This way, you can meet all your financial needs with just one licensed money lender instead of having to apply for different loans with different providers. Moreover, you should choose a lender with flexible repayment terms and a good reputation.