Most of Singapore moneylending business falls under the. Singapore government and many of the players are licensed but there are some errant ones who get away by charging exorbitant rates of interests and these loan sharks end up fleecing the borrowers.
Tips to check on a money lender
- The Money Lender Singapore Licensed should be licensed from government regulatory board.
- They should have a valid operational licence.
- They should be recognised and regulated in their operations.
- The licence number should be seen on the website of the moneylender.
What a money lender should do
- The confidentiality of the borrower should be maintained and only disclosed with his/her consent.
- The maximum amount of rate of interest should not exceed 4% per month.
- The administrative fee should not exceed 10% of the principal amount.
- The late fee per month should not be more than 60 Singaporean dollars.
- All the fees and charges should not exceed more than the principal amount.
When you have found the right licensed moneylenders you should look into the following points
- You should check for the interest rates offered by the moneylender on all the types of loans
- You should compare these rates with the other moneylenders that you have shortlisted and see which matches with your financial situation.
- Going through the loan agreement with precision is important sometimes there are hidden clauses or fees that may go unseen. If at any point the contract doesn’t seem clear to you get it clarified before signing on the dotted line.
- The borrower should always check out if he/she would be able to pay back the loan on time and agree to the terms and conditions which are in his/her favour, if not find a different lender.
With the moneylending growing by the day, but the confidence of the borrower has increased with the new regulatory laws which have benefitted the borrower in many ways than one. The errant moneylenders who would charge a bomb on the principal have now been stopped in their tracks. Visit EasyCredit.com.sg to know more.