Borrowing from licensed private lenders requires you to sign loan agreements and comply with specific procedural requirements. There are over 150 licensed money lenders in Singapore. They offer small, short-term loans for personal and business purposes. Reports show that demand for private financing products saw a significant rise over the past two years.
Several Singapore residents choose to borrow from a licensed money lender Singapore for various reasons such as fast approval, less paperwork, etc.
The loan terms and policies put forward by different money lenders may also vary. By shortlisting and comparing a few top-rated private lenders in Singapore, you maximise your chances of obtaining the best personal loans at favourable terms.
Regulated By the Ministry
Unlike that of loan sharks, the activities and operations of licensed private money lenders are regulated by the Ministry of Law in Singapore. So these money lenders operate legally and are listed on the Registry of Moneylenders maintained by the Ministry.
Customers have the complete liberty to file complaints with the Ministry if the moneylender violates the terms of the loan agreement or violates the terms and conditions set forth by the Ministry. Borrowers can file their complaints and claims with the SCT or the Singapore Police Force.
The Ministry will take necessary action to ensure that your complaints are addressed. However, before you borrow, it is vital to check if the moneylender holds necessary licenses and that their business name is on the registry.
The Ministry prohibits moneylenders in Singapore from charging interests higher than 4%. The typical interest rate for private loans from licensed lenders in Singapore is between 1 and 4%. Bank interest rates for specific loans can be as high as 6%.
You may lower your total monthly interest costs significantly by choosing a private money lender. Loan sharks charge borrowers exorbitantly high interest rates. Additionally, it is illegal to lend money without a license.
Compare interest rates offered by different licensed private lenders in Singapore to choose the best one. It is also essential to consider other fees like initial loan fees, processing fees and interest payment default fees charged by the money lenders while making the comparison.
Instant Approval and Fast loan Allotment
Financial emergencies come unannounced. You may not always be able to plan and provide for all your financial needs. While approaching a bank may seem like the safest option, it may take at least a week for banks to review and approve or disapprove your loan application.
So, if you need cash immediately, you can approach a licensed private money lender in Singapore. These legal money lenders approve loans on the same day you apply for them. Additional documents like your income statements, bank reports are usually reviewed.
Loans offered by licensed moneylenders are specifically designed to address personal and business emergencies. Hence, the waiting time is much lower compared to bank loans.
No Hidden Terms or Costs
Loan agreements offered by licensed private money lenders are straightforward. Legal money lenders do not charge additional fees for early loan repayment. Additionally, these legal lenders don’t try to trick customers with hidden clauses and conditions.
However, you may study the loan agreement and other contracts in detail to ensure that you are not taken by surprise later on. There is also less loan-related paperwork involved when applying for and getting loans from private licensed money lenders.
Legal Loan Recovery Procedures
Loan sharks may use force, coercion, threats, and other forms of harassment to recover money from unassuming customers. You could even suffer severe physical and psychological harm as a result of their methods.
The prime goal of licensed money lenders is to help you meet your financial emergencies with fast cash. These non-banking financial institutions only use legally approved notices and legal warnings to encourage timely loan repayment.
A licensed Singapore lender may have the option to seize your private assets if you default loan payment for significant periods. However, they don’t resort to aggression and usually offer a reasonable repayment time.
The loan period is usually anywhere between 6 to 12 months. Private money lenders in Singapore typically offer flexible loan agreements.
Additionally, these lenders respect your privacy and ensure your private financial information is safe. Private lenders also offer full transparency for all banking transactions.
Whether you need emergency capital for your business or fast cash to meet a sudden medical emergency in Singapore, only a licensed money lender can help you solve your sudden financial problems without creating any.