Moneylenders help thousands of people every year. Despite this amazing feat, not all licensed moneylenders are made equal.
There are credit companies that provide better service than their competitors. If you are planning to apply for a Singapore personal loan, business loan, or other types of loans, here’s how to find the most reputable Singapore money lender.
Moneylenders Must Have a License Number
It is important that borrowers are familiar with other legitimate credit companies in the market.
The best way for borrowers to start their search for a dependable money lender in Singapore is to check out the list of moneylender in Singapore of the Ministry of Law.
For the borrowers, this means that they are better protected than when they choose to deal with unlicensed credit companies. The best way to know is to check the list here.
Moreover, you can also tell if a moneylender is licensed or not through determining if they either follow or violate the rules set by the government.
For example, licensed money lenders should not use abusive language when dealing with their clients. Borrowers should never feel harassed or threatened by a credit company. If they do, there is a chance that you are dealing with illegal moneylenders.
Also, licensed moneylenders are required by law to explain the details of a loan contract. This means that borrowers should never be asked to sign a blank or incomplete Note of Contract.
Also, a licensed moneylender requires to make the contents of the contract clear to the borrower. Thus, the contract should be written in such a way that borrowers must be able to understand everything in it.
If you wish to know more about the prohibited or unlawful acts that illegal lenders can commit, you can read some FAQs here.
If in case you experience or encounter an illegal act done by a credit company, do not hesitate to contact the authorities immediately, Remember that an a licensed moneylender in should not violate the Moneylenders Act in any given circumstance.
Benefits of Borrowing From a Licensed Moneylender
1. You won’t be harassed (it’s illegal!)
For some, dealing with loan sharks or ‘Ah Long’ is easier than dealing with legitimate or licensed money lenders. But this is very far from the truth.
It is extremely dangerous to deal with unlicensed moneylenders as they use violence to intimidate the borrowers. Also, these illegal companies take advantage of the desperate situations of the borrowers by giving them high interest rates, hidden fees, and additional charges.
2. Interest rate is up to 4% only
On the other hand, choosing to deal with licensed loan providers is beneficial to the borrowers. For one, the interest rate cap of all the loans is only at 4%.
By law, Licensed moneylenders should not go beyond 4% interest rates. Moreover, the Ministry of Law states that licensed moneylenders are only permitted to impose these charges:
(a) a late interest fee of not more than $60 for each month of late repayment,
(b) a fee of not more than 10% of the principal of the loan once the loan is granted,
(c) the legal cost ordered by the court for a successful claim by the moneylender for recovering the loan.
3. Fast approval of applications
Also, contrary to popular belief, fast cash does not happen through dealing with loan sharks. Instead, licensed moneylenders are the ones who can deliver fast cash to the clients.
In many instances, legal lending companies can approve the application within the day. This means that within a few hours, borrowers would be able to get their money.
4. Flexible repayment terms
Another misconception when dealing with licensed moneylenders is that these companies do not negotiate when it comes to loan terms. In reality, legal credit companies offer flexible repayment schemes.
Borrowers just have to talk to the bank representative in order to find the best deal offered by the company. If borrowers are facing financial difficulties, they just have to tell it to the credit company so that the latter know which repayment scheme should work the best.
5. Those with bad credit scores can still seek financial help
Lastly, people with low credit scores can still borrow money from licensed moneylenders. They just have to provide proof of income and expound their financial status so that lending companies find the best loan deal for them. Note that if you have a bad credit score, look for the loan company that accepts a low credit rating.
Requirements in Applying for a Loan
Before applying for a loan, complete the requirements necessary. Once these are submitted, you do not have to wait for long before your application is approved.
Here are some of the information and documents asked by licensed moneylenders. Note that these requirements are meant for citizens and permanent residents. Foreign applicants have to submit additional requirements.
- Full name
- Date of birth
- Personal identification number
- Address of residence
- An email address if available
- Contact number
- Amount of the loan you applied for
Moreover, some licensed loan providers might ask you to provide additional and supporting documents.
These are meant to give more information about your financial standing. You can choose to bring these documents even before the credit company asks you to submit. Here are some of these documents:
- Utility bills
- Income tax statements
- Proof of the borrower’s income for the past three months before the credit application
Meanwhile, if you are a foreign national, you may be asked to submit additional requirements. Know that you are still required to submit some of the documents mentioned above.
Try to bring these with you when you file your application. These documents are:
- Copy of your tenancy agreement
- Original valid employment pass
- Appointment letter/s from the employer of the borrower
- Bank statements
Take note that not all licensed moneylenders would require the same requirements. It is best to contact your chosen licensed moneylender before filing your application.
The best licensed money lender Singapore could offer has outstanding customer service. Thus, do not hesitate to ask for help from the company’s representative.
Which is the Best Licensed Moneylender to Apply for?
Despite the long list of licensed loan providers, there is one credit company that will provide the best service to the loan providers. The best would be A1 Credit Pte Ltd.
As mentioned above, loan providers offer different types of loans and have followed the rules of the Ministry of Law diligently over the years. It has left hundreds of extremely satisfied customers.
One awesome quality of A1 Credit is that it provides a fast cash loan that you can apply for online. This is particularly important for borrowers who are facing financial emergencies.
If ever you are in a situation where you need funds immediately, do not hesitate to contact A1 Credit. They have an existing loan scheme meant for people facing such a situation.
Moreover, A1 Credit has low interest rates as well as flexible payment plans. Even individuals with bad credit can apply for loans. The company has created financial plans meant to respond to their situation.