Guide to Finding the Best Licensed Money Lender in Singapore

Guide to Finding the Best Licensed Money Lender in Singapore

Borrowing money in Singapore can be challenging, especially if you’re a foreigner fresh off the boat. If Singaporeans have difficulties borrowing from their banks, a foreigner can have a much more frustrating time. Thankfully, legitimately licensed moneylenders whose activities the Ministry of Law oversees has made it easy and safe to find useful financial services.

Unfortunately, many Singaporeans and foreign workers continue to fall for loan shark offers. These high-risk and unregulated activities allow the unscrupulous moneylenders to change their terms to enslave struggling borrowers to pay monthly. Additionally, they harass borrowers who fail to pay back their dues, avoid term compliance, or seek help from authorities.

In this guide, you can find the best money lenders in Singapore quickly. We’ll provide you places you can find a list of licensed moneylenders you can trust, signs you’re working with ah longs, and everything you need to know about excellent licensed money lender Singapore services.

The Qualities of Trustworthy and Outstanding Moneylenders in Singapore

To own a license to run a money lending service is a challenging but rewarding feat. If you work with money lenders who comply with all the Ministry of Law’s requirements, you can trust that you’ll have an excellent time with your loan application. Additionally, you can expect them to honor all the terms and conditions and make it easy for new borrowers to apply for a loan.

A dependable money lender in Singapore aims to make their work helpful to borrowers. Their loan officers are always ready to help go through your loan application details. Furthermore, they’ll always inform you completely. By the end of your loan application, you’ll have known about your payment schedule, regular repayment per month, the final interest rate, and all other information you need.

  • Fully Licensed By The Ministry of Law

The Ministry of Law has every prospective licensed money lender go through a series of examinations. As the Moneylenders Act and Rules state, all would-be licensed money lenders must pass their initial examinations. These include personality and experiential examinations. Furthermore, any money lender will undergo seminars illustrating the lender and borrower’s liabilities and rights.

Once they satisfy all technical and certification requirements, the money lender will earn their place in the Registry of Moneylenders. MinLaw oversees and manages the Registry that contains a list of all the licensed moneylender services borrowers can trust. With proper vetting, certification, and licensing, borrowers can be confident they’re working with a respectful and customer service-oriented establishment.

  • Tailor-Made Personal Loan Plans for All Borrowers

A personal loan is the primary financial service of any legitimate moneylender. While a legal money lender might have other loan products, such as debt consolidation services, this short-term personal Singaporean or foreigner loan has a low fixed-interest rate. Most moneylender services advertise their estimated minimum and maximum interest rates and loan amounts on their website.

Because these are only estimates, a licensed moneylender can change its features to suit the borrower’s needs. The minimum and maximum amounts and interests serve as limitation references, allowing borrowers to calculate the possible loan amount and final interest fees they will deal with by using their services. Thankfully, dependable lenders always have friendly staff who can explain these details plus the differences between payday loan, fast cash loan, and foreigner loan against a personal loan.

  • Capped Interest Rates

According to the Moneylender Act, all foreigner loan, personal loan, and payday loan can only have 4% interest as its ceiling cost. Doing this prevents borrowers from incurring deep debt that takes a lifetime to resolve. A licensed moneylender’s cap interest rate is manageable if you compare it to the high-interest rates loans from banks have. Having a fixed ceiling interest rate makes your installment calculator results reliable too.

Truthfully, ah longs had used high-interest rates to subdue borrowers before the Moneylenders Act materialized. During this period, poor borrowers had to go through the harassment of changing terms and conditions, continuously trapping them in an inescapable debt circle, hindering their ability to recover and recoup their spending. Thanks to MinLaw’s intervention, microlending has become a heavily regulated industry that benefits legitimate borrowers and lenders.

  • Flexible Payment Options

Any lender with a license to provide monetary services in Singapore possesses competitive products and services to the borrower’s benefit. Their flexibility extends to borrowers with poor credit scores, allowing anyone in the country to have decent financial services. Truthfully, their exceptional pay flexibility allows lenders to provide top-notch debt consolidation services.

Furthermore, legitimate Singapore lenders do not focus on the available personal loan and payday loan products alone. You can apply for a loan to start your new business. It’s easy to apply for a business loan even if it has different guidelines set because the lender’s loan officers will explain and assist you every step of the way.

  • Excellent Reviews on Google Singapore and Dedicated Comparison Websites

With today’s technology, word of mouth isn’t the only source of money lender reviews. Singapore-oriented loan comparison websites, such as Loan Advisor and Instant Loan, have true borrower reviews about a moneylender’s specific services. Using a small bit of averaging and observations, you can make the right judgment about your prospect moneylender’s nature and objectives.

Many previous customers will note a customer service team member’s name due to their helpfulness in accomplishing a certain task. Some may talk about the payment plan’s convenience, which the money lender formulated on their behalf. To help you know if a review is qualitative, don’t hesitate to message the borrower and hear about their experience firsthand.

Signs You Should Reconsider Your Prospect Singapore Moneylenders

Before you apply for a loan at your prospective moneylender, make sure to check their background in full. Ah longs have adapted their marketing and branding to imitate legitimate and highly-trusted Singaporean lenders. Truthfully, many loan sharks can easily masquerade as a legitimate lender by following all the Moneylenders Act’s rules and liabilities.

Implement this rule first and foremost: If your lender cannot present a license number, don’t consider using their services. Plus, if they provide you a license number but couldn’t find their name in the Registry of Moneylenders, it’s best to avoid using their services. For further reading, if your lender violates the rules below in any form, reconsider finding another lender to use.

  • Advertising Style Violating Communication Laws

All legitimate money lenders can have their respective social media account and website. However, they can only use these channels to establish their existence and advertise without any outreach.  Furthermore, MinLaw restricts lenders from using affiliate-style marketing.

  • Soliciting Your Attention in Any Way

MinLaw doubles down on penalties for lender outreach. They expect all legitimate lenders to avoid sending soliciting messages inviting borrowers to use their services. Legal lenders cannot use a borrower’s contact information for future service-use invitations. The Ministry restricts all communication to official updates regarding loan applications, payment schedules, and other ongoing loan-centered messages.

  • Commit Privacy and Safety Violations

Ah longs of Singapore’s past and present stalk borrowers and hold their personal information for an uncertain period. MinLaw considers these activities criminal. Therefore, any lender with a license that performs similar activities is clearly committing privacy and safety violations. Any substantial report will warrant a MinLaw investigation, which may lead to a Singapore lender’s suspension or ban.

What Recourse Do I Have Against Fraudulent Licensed Moneylenders?

Singapore’s Police Force has a dedicated department fighting against ah longs and scammers across Singapore. If you know someone involved in illegal lending or you need immediate police protection against harassing loan sharks, you can dial 999. You can report all suspicious activities to the police force’s loan shark reporting hotline at 1800-924-5664. The country’s police and anti-scam departments treat illicit moneylender activities seriously.

How to Find The Best Licensed Moneylenders in Singapore

The Registry of Moneylenders guarantees only the safest moneylending service choices in the country. However, if you’re looking for the best deals, you’ll need to do a bit more research. Financial products change their offers periodically, and keeping tabs on them is crucial if you’d like to find the best deals. Thankfully, you have the following to help you find the best ones quickly.

  • Use Loan Comparison Websites

Dependable comparison sites, such as Loan Advisor and Instant Loan, are helpful because they track the latest deals and financial product updates available from virtually every Singaporean bank, moneylender, and financial institution. If you register a borrower’s account, you can receive email notifications containing the best loan comparison interest rates.

  • Always Find The Nearest Trustworthy Lenders

If you’re residing near Clarke Quay station and near the Chinatown Heritage Center, you can always count on A1 Credit to provide you with the best legitimate money lending service. We update our rates frequently. Plus, you can submit an application to us through our website. Visit us today to learn more about our services!

Anybody living a good distance away, we highly advise working with their local money lenders. However, we understand and highly advisable to always go for moneylender rates to give you the best value-for-money service.

Licensed Moneylenders Always Guarantee a Safe and Fruitful Borrowing Experience

Thanks to government efforts, all Singaporeans can enjoy an excellent experience working with dependable and reliable money lenders in the country. Always check for your prospect lender’s license number and terms and conditions. No legitimate lender will ever charge you upfront for loan processing fees before loan application approval and change their terms and conditions after contract signing. Lastly, make sure to research your chosen lender’s products and services in-depth to get the best deals!

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