When you are in dire need of cash, you might feel tempted to borrow from an illegal moneylender, also known as a loan shark. They offer cheap, fast loans but their terms are often unfavorable for borrowers. They can even charge excessive late payment fees and interest rates.
Licensed moneylender singapore, on the other hand, follow the regulations set by the Ministry of Law and are subject to strict guidelines. This includes the limits on interest rates, allowed fees, and the duration of the loan term. Moreover, they are required to clearly explain all terms of the loan in a language that is understandable by the borrowers. They should also disclose the exact amount of interest and late payment charges that will be incurred throughout the repayment period.
If you are unsure whether a moneylender is a licensed one, you can check out the Registry of Moneylenders website. It offers a list of all the moneylenders in Singapore, together with their contact details and physical address. You can also read reviews about moneylenders on the internet. If you come across a moneylender that does not appear on the Registry, it is most likely an illegal money lender.
In addition, reputable moneylenders do not intimidate or blackmail their clients. They cannot threaten to damage or take possession of the borrower’s property without a Writ of Seizure and Sale. They also do not give out SingPass user IDs to their clients and do not ask for the NRIC card or other personal ID documents. If you are in trouble with debt, you can seek help from Credit Counseling Singapore (CCS). They provide free counseling services to help borrowers manage their finances and cope with debts.