Ever so often, we get customers whom have gone down the path of borrowing from unlicensed moneylenders. We have advised our clients multiple times, to get legal loans from licensed financial institutions in Singapore.
Unlike the major financial institutions in Singapore, the licensed money lending industry has gotten a bad reputation with unlicensed money lenders spoiling the name of legal loans. Some unlicensed money lenders have gone to the extend of bribing employees to release customer phone records just to gather those who are in need.
Furthermore, errant licensed money lenders have also caused a bad rep for us.
Getting Licensed Legal Loans
So how does one get licensed legal loans? Basically, there are a few touch points that borrowers can look at. Firstly, the local banks and major financial institutions are able to provide legal loans with ease. However, these are usually susceptible to closer inspection from the companies in terms of looking at your financial capability, your salary income and your current liabilities.
Also they tend to be stricter in selecting their borrowers so as to reduce their standing overheads. There are also many financial legal loans to consider when you are getting from banks such as home loans, car loans, home refinancing, renovation loan, personal loans, fast cash loans and many more. One could easily get confused in the financial jargon.
There’s also borrowing from licensed money lenders whom are able to provide licensed legal loans to Singaporeans, PRs and foreigners too. They are slightly more lax in their rules, and with the new regulations imposed by MinLaw, licensed money lenders would not want to risk losing their licenses over giving loans that you cannot sustain or giving overly high interest rates.
The interest rate has been capped to 4% monthly interest rate as set with the new regulations. As licensed moneylenders, this has indeed caused disruptions in our business flow, however we do understand the new rules standpoint and are more than happy to advise our clients on borrowing legal loans.
Legal loans from licensed money lenders could be easier to understand for many as most are geared towards personal loans. Furthermore, there are online financial loan quotation tools like ours that are provided by the licensed moneylenders. This in turn allows borrowers to get a fast selection and review process.
Choosing Legal Loan Provider
So how does on choose a great legal loan provider in Singapore? Firstly, check out the reputation of the licensed money lenders in Singapore. Read the many online reviews and compare between them.
Check for their licenses whether they are still accredited under the Moneylenders Act. Issuance of licenses are very strict, hence companies that remain are the ones that adhere strictly to the rules stipulated by the law.
Next, place online quotation requests with your loan requests to figure out which licensed money lenders provides the best deal for your legal loans.
Last but not least, head down to the few selected licensed money lenders of your choice and talk to the loan officers. They will explain to you the financial terms, the legal standings, and of course assess your loan situation and financial capability.
They will determine a suitable loan amount and repayment mode. Ensure that you are comfortable with this arrangement and get the loan officers to explain any legal documents that you do not understand. And when you are fine with what’s provided by them, it’s time to sign and get your legal loan.