When you borrow from a legal money lender in Singapore, you can be sure that you’re dealing with a legitimate financial services provider. Licensed money lenders must adhere to the guidelines specified by the Ministry of Law in order to protect borrowers from unfair lending practices. You can check a moneylender’s license by visiting their website or calling their office landline to verify that they are indeed licensed. Additionally, a reputable moneylender will invite you to their office for face-to-face verification before they lend you any funds.
In addition, all authorized money lenders must provide a written warning to borrowers about the risks of borrowing from them. They must also clearly state their interest rates, permitted fees, and the date on which they will begin calculating late interest charges. Moreover, they must also inform their borrowers about where they can file a complaint against them.
Securing Your Future: Legal Loans with a Licensed Money Lender in Singapore
A good licensed money lender in Singapore will check your credit report before approving you for a loan. They will also assess your ability to repay the loan based on your income. They may even require your payslips or income tax statements as proof of your income. Moreover, they will also verify your citizenship and other documents as required by the law.
Ultimately, if you’re unable to repay your loan, you will have to pay a fee to a debt management company that is approved by the government. This company will distribute these refunds among your creditors, including your authorized moneylender. Alternatively, you can also seek help from Credit Counselling Singapore to manage your debt and develop a repayment plan.