Licensed money lenders are regulated by the Ministry of Law and adhere to strict guidelines and legal requirements. They offer loans at fair interest rates and reasonable repayment terms. They also provide helpful financial counseling and advice to help borrowers manage debts effectively. In contrast, loan sharks are unlicensed lenders that prey on vulnerable people by offering short-term loans at exorbitant interest rates. They can also impose hefty late fees and penalty charges, which can be difficult for borrowers to pay.
When choosing a licensed money lender, it is important to look for reviews and comparisons on the Internet. You should avoid using only a single review website, as it is possible that the site might have been biased. Try to read as many different reviews as you can, so that you get a more comprehensive view of the money lender’s reputation.
A good money lender will clearly explain the terms and conditions of their loans. For example, they should explain their permitted interest rate, the date of the loan disbursement, and the calculation of late interest fees. In addition, they should not impose any charges that are not listed in their loan contract. Furthermore, they should not ask you to share your SingPass account details or NRIC card number with them.
Licensed moneylenders should also display their business credentials on their service websites and offices. Moreover, they should not advertise their services through illegal channels. This includes door-to-door sales or placing advertisements on the doors, walls, or windows of their office buildings. money lender singapore