Licensed money lenders are regulated by the Ministry of Law and adhere to strict rules. They do not impose any interest or late payment fees that exceed 4% monthly. They also cannot intimidate or blackmail borrowers, and they cannot seize any property without a Writ of Seizure and Sale.
They also only advertise through business or consumer directories, their own websites and advertisements placed within or on the exterior of their offices. Stay away from loan scammers who send SMS or WhatsApp messages offering loans!
Personal Loans
Licensed money lenders in Singapore offer a variety of personal loan packages. Some are able to process your application in just a day. This is a great option for those who are in need of quick cash to pay off debt or cover unexpected expenses.
Some money lenders may also be able to offer lower interest rates than banks. This is especially useful for those with poor credit scores, as banks often turn down loans to such borrowers.
When applying for a loan, be sure to read the terms and conditions carefully. A legal money lender must provide a written contract outlining all of the loan’s terms and conditions. This includes the loan amount, repayment schedule, and interest rate. It should also include a statement of account and receipts for every payment made on the loan. Moreover, the total cost payable must not exceed 10% of the principal loan amount. In addition, late interest rates and other fees should not be more than 4% of the loan principal.
Debt Consolidation Loans
If you have multiple unsecured debts such as credit card balances and personal loans, you may want to consider applying for a debt consolidation loan in Singapore. This type of loan combines all your outstanding debts into a single payment with one financial institution, and it can help you save money on interest rates and fees. However, you must be able to demonstrate that you have a steady source of income. This income can come from your job or other sources such as rental income.
Moreover, you must be able to make your monthly repayments on time. Missing payments can result in penalties and even bring down your credit score that you had already started to improve. This is why it is important to review your spending habits and manage your finances well before approaching a moneylender. Aside from that, you should also check the money lender’s license to avoid being scammed by illegal lenders.
24 Hour Loans
Licensed money lenders in Singapore have online loan applications portals that work around the clock. However, the actual processing and approval of these loans will usually take place on the following business day. If you are in dire need of emergency cash, you can use these online portals to apply for a personal or emergency loan. Just be sure to check that the lender you’re dealing with is licensed and registered with the Ministry of Law. Avoid unlicensed money lenders, also known as “ah longs” or loan sharks, which charge excessively high interest rates and fees.
If you have multiple loans, a debt consolidation loan can help you pay them off in one go. These loans often come with lower interest rates and are more manageable. It’s best to speak with an experienced moneylender about this option. Most will offer consultations for free. A good moneylender will also provide you with a comprehensive range of financial services.
Instant Cash Loans
Licensed money lenders in Singapore offer quick cash loans to help you deal with financial emergencies. They may charge higher interest rates than banks, but they are legal and follow the Ministry of Law’s regulations. You can check their licence status at the Ministry of Law website. They must also verify a borrower’s employment status and assess whether they can repay their loans before lending them any money.
Unlike banks, which have extensive loan requirements and restrictions, money lenders can process your application quickly and easily. They may even let you apply online. However, beware of unlicensed moneylenders who contact you via text messages or phone calls and ask you to pay administrative fees or processing charges before granting your loan.
These are probably loan sharks who are trying to take advantage of you. Licensed money lenders will never ask you to pay any fee before they grant you a loan. They will also provide you with a written statement that clearly states your loan’s terms.moneylender singaporemoneylender singapore