A licensed moneylender is a financial institution that is regulated by the government to ensure fair and responsible lending services. They offer a wide range of loans, including personal loan, renovation loan and debt consolidation loan. Besides offering competitive interest rates, licensed moneylenders also provide quick loan approval and flexible repayment terms. However, it is crucial to research and compare various options before choosing a moneylender. You should also look at the company’s reputation and whether it has a physical office. If you’re unsure, ask friends and family for recommendations.
Unlike loan sharks, licensed moneylenders are required to follow strict rules and regulations. This includes being transparent about their charges and fees. They also cannot charge you a higher interest rate than what is stipulated in the contract. Additionally, they cannot impose unreasonable charges such as late payment fees or collection charges. In addition, they must give you a 10-day cooling-off period after you sign the loan agreement.
Moreover, if you’re looking for a trustworthy licensed moneylender, you should look for one that has a good online presence and physical offices. Typically, a moneylender with a well-established website will have a strong customer base and have a positive reputation in the industry. Additionally, it will have a dedicated customer service team to handle your queries.
In addition to being regulated by the government, licensed moneylenders are also expected to adhere to strict guidelines when it comes to advertising their products. They are not allowed to solicit loans through SMS, WhatsApp, email, flyers or direct phone calls. This is to protect borrowers from fraudulent moneylenders and prevent them from falling into a debt trap.
If you’re unsure about a particular moneylender, you can check their license status through the Registry of Moneylenders. This website contains a list of all licensed moneylenders in the country, along with their business name, licence number and contact information. Moreover, you can also report a licensed moneylender if you suspect them of harassing or overcharging interest rates.
When you’re selecting a licensed moneylender, be sure to read the terms and conditions carefully. You should be provided with a full contract and clearly defined terms and conditions. Licensed moneylenders will never charge you upfront fees and they should disclose all the costs associated with their loan in the beginning. They also should not ask you to sign any documents that you have not fully read and understood.
Lastly, licensed moneylenders must allow you to verify your loan application face-to-face before disbursing the funds. This is to ensure that the loan amount is correct and that you are aware of the total cost of the loan. In addition, they should not send agents to your home to collect your loan payments. Moreover, they should not charge you for home collection and must have a written authorisation from you to collect your repayments.
Additionally, a licensed moneylender should not use threatening or abusive language to collect your debt. This is against professional standards and should be reported to the Registry of Moneylenders immediately. You can do this by submitting the lender’s business name, licence number and contact information via the Registry’s website or by calling their hotline.