Things to know before taking a legal loan in Singapore

A legal loan in Singapore can be difficult to navigate around. While money Lending is one of the common and most profitable businesses here, finding a reliable and authentic money lender can be hard. Be it an emergency or a long-term plan, it is essential to understand the legalities and follow them. Here are some things to keep in mind when you plan on taking a fast loan in Singapore:

Look for a licensed money lender

Do your own research. Ask friends who have availed services of a money lender to take a legal loan in Singapore. Personal references work best. But in addition to that, make sure that you ask the right questions to the money lender. Check if they are registered under the Moneylenders Act of Singapore and whether they have the license. If they don’t have the license, they must be exempted or excluded from the act for some reason and must have proof to say that.

Check relevant details

Once you have a list of licensed money lenders, check for other important details such as interest rates, repayment period, etc. depending on the type of loan you want to take. It could be a personal loan, home loan, education loan, medical loan, business loan, or something else. Don’t forget to ask about penalties in case of delayed repayment or default. The Moneylenders Act has policies that protect the loan recipient and as an educated customer, you should take the responsibility of ensuring that the fast loan in Singapore from a licensed moneylender doesn’t trouble or harass you in the name of penalties.

Another thing to check is the credibility of the money lender. Ask them about their experiences with other similar customers. If possible, talk to some of those customers to get feedback about the money lender. Get to know for how long they have been in the market. Read the customer reviews on their website or social media pages. See if there are any recognitions or unbiased mentions. Not to be cynical, but to be safe, especially because money is involved.

Get in touch with an experienced professional

There are individuals and companies out there who can advise and consult you to choose the most suitable money lender, depending on your budget and requirements, to take a legal loan in Singapore. They would simplify the terms and conditions for you and will help you filter through the long list of available options. They will also assist you with the application process and paperwork to take loan from a licensed moneylender. This could be an additional step for those who are confident of directly meeting the money lender but if you’re even slightly unsure, this would go a long way in taking that loan carefree.

Know the warning signs

Whether you follow the professional route or directly meet the money lender to take a legal loan in Singapore, once you have verified the information and got all the details, it’s still important to keep yourself aware of the processes and procedures at each step. Here are some of the warning signs to look for:

• They should not ask for your banking or any other passwords, pins, SingPass ID. Don’t share it with anyone. A reputed and reliable business will never want it.
• It’s a concern if they don’t go through the required paperwork or don’t make you sign the contract in the name of convenience. The compliances have to be followed.
• At the same time, do not sign on a blank document or a blank cheque. In fact, do not sign anything that you don’t understand. Ask questions. Clarify before finalizing that loan from a licensed moneylender.
• If the money lender has any record of not returning customers’ passports or other ID proofs or even debit/credit cards, you know you’re in trouble.
• If the staff or your point of contact uses abusive language with you or harasses you in any other way, you are entitled to escalate it and end the association immediately.
• Upon completion of the process, you should be given at least 90% of the total principal amount as per the agreement.

With these crucial points to follow, we hope you are more aware of what to look out for when taking a fast loan in Singapore.