Do not fall into the Trap: Know the Difference between Licensed and Unlicensed Money Lender

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You may sometimes find yourself in a financial situation when you are needing more but is wondering where you can get money. There are some money lenders in Singapore wherein you can get a loan faster than the traditional ones. 

You might need additional money for a certain home repair, short budgeted for the next payout or dealing with some emergency situations in life, there will always be a private money lender Singapore who can provide you with what you need.

Licensed money lender

There are unlicensed and licensed moneylenders all over Singapore. The fact is, you might be into some kind of trouble when you borrow money from the unlicensed ones. The licensed lenders will provide you with great deals that you can be guaranteed as legit transactions. 

They can offer you a wide variety of loan packages that will help you to deal with your finances smoothly. 

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Licensed companies or institutions are providing borrowers with the best possible option that they can avail when they borrow. They have their terms and conditions setup as per what the law in Singapore tells them. This means that they give you a full percent of a safe transaction. You can never go wrong with these companies and institutions. 

Loan packages from these moneylenders in Singapore are assured with:

  • Easier processing of loan application
  • Approved faster than the traditional ones
  • Their requirements are less rigid than the others
  • Provides considerations to those who are having low credit grades
  • Offers more flexible agreement
  • Provides different options that can be more helpful to people

It is always important to look for the best money lender in Singapore so that you can have all the security that you need when applying for a loan. 

Licensed institutions that are allowed to lend money will give you the best choices there are that can help you be up to date with your finances. They can provide with the best repayment options as well as interest rates that will not get you at risk with financial matters.

Unlicensed money lender

paying with credit card

Singaporeans and some foreigners are highly being the target of unlicensed institutions that offers loans. There have been a number of cases that was linked to harassment and high repayment fees when it comes to dealing with the unlicensed ones. 

They aim to victimize the people who are most vulnerable during the times of their difficulties. Harassments may occur over the mobile phones, calling the customers constantly, sending SMS or even posting in social media from these unlicensed lenders. 

Some victims are mostly foreigners who don’t have that much relatives or friends in the country. They do not have the resources to cover for the amount of money that they need for themselves that is why they are being offered a loan package that they can not refuse. 

Singaporean police are doing their best to prevent the troubles of unlicensed moneylenders. They are constantly reminding the employers to tell their employees not to borrow money from these scammers. 

If you are a frequent customer of a moneylender who is not legally licensed, you should take not that you are at risk with them because most of the time, your life will never be the same again. 

Some people are just advise not to borrow money just to keep up with their finances and just deal with what they have just to make sure that they will not be scammed and their lives will not be bothered by harassment. 

You can opt to just talk to the one you owe to like the companies for the bill payment, the landlords for your monthly rental and talk to someone who can help you with the late payment of your mortgage. This way, you can be offered payment arrangements that can give you more time to pay for what you owe.

Some thought to ponder:

  • If you have friends and family members who can help you with your financial struggle, especially when it’s just short term, ask them for some help it will never hurt. 
  • Before borrowing a certain amount from a lender, try to look for alternatives like contacting the companies where your bill is due and arrange for a payment arrangement that will be more convenient for you. You can also try to contact the government for some options of financial assistance because they offer these most of the time to help people who are struggling.
  • Only apply for a loan that you REALLY need. Do not just apply for a loan to buy something that you just want and not really something that you will be needing. If you borrow a certain amount because you just want to buy something expensive that you want, like an expensive bag, possibility is that you will be struggling to repay it.
  • If you choose to borrow money, make sure that you are dealing with  a legit institution so that you will not have a hard time to deal with them and there will be less chance of harassment.
  • Never forget to read ALL that is written in the terms and conditions of your loans. This will help you understand the things that you need to do for you to keep a good relationship with the lender as well as keep a healthy credit score.
  • Keep up with your monthly repayment schedules. This will also help you keep a good credit grade that you will need in the future.

When the time comes that you will need to get a loan, make sure that you shop around for options that will be more suitable for you and you will never be compromised with their agreement. 

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