How to identify between legal and illegal money lender

The Singapore government has introduced new rule according to which the money lenders are allowed to give loans at maximum interest rate of 4% per year. This rule is applicable to all the licensed money lenders of the country. There are thousands of money lenders in Singapore because of the increasing demand of loans. Most of the lenders are registered and licensed by the ministry of law.

You can easily check if the money lender is licensed or not, in the registry of moneylenders. Licensed money lenders are obliged to treat the customers with respect. Before getting a loan you should make sure that you are dealing with the licensed money lender to avoid any trouble in future. Because once you sign the loan agreement then you must fulfil all terms written in the agreement. So you should carefully identify the lender before committing.

With the increasing number of the money lenders in country, number of loan sharks is also increasing. There are several “loan sharks” in the market that are always looking to trap someone in their loan net so they can feed off their repayments for coming years. Once you are trapped in a bad loan deal, you will regret it for the rest of your life. It is not only you who will pay the price but also your family. So it is very necessary that you find a lender that is registered with the government

There are certain conditions and restrictions imposed by the government on licensed lenders, which keeps them under check. According to the law, the licensed money lenders can not advertise via SMS marketing or telemarketing. If they do so, then they have high risk of cancellation of their license. Many loan sharks use this method to advertise their services. You must ignore those advertisements.

Licensed money lenders do not use online money transfer for transferring the loan amount. No legal lender will do that to prove the instant cash transfer. Licensed money lender will always ask you to visit the office in order to sign the agreement. Even if you apply for a loan online, you still have to visit the lender’s office in order to finalize the deal. Only fraudulent lenders transfer funds over the internet, so there will not be any record of money transfer.

Legal money lenders never ask you about your personal information over the phone. They are required by the law to ask for the personal information in face to face meeting with the client. You should never give your personal information over the phone in any case. Some illegal lenders ask for SingPass info on the phone which is something you should never disclose. A legal lender will only ask you info in the office, once the loan application is approved.

It is very important to find a lender which is licensed, in order to save yourself trouble. You can search for information about different moneylenders of Singapore on internet. You can easily find moneylenders sg online and do some background research about lender before signing any loan agreement.


Premature Withdrawal of a Recurring Deposit: Pros and Cons

Recurring deposits is one of the most secure and most popular savings schemes. The common citizens of India prefer saving their hard earned money for unforeseen future circumstances. And if they get lucrative interest rates on the investment, nothing is better than that. How much interest rate do banks offer?

In a recurring deposit, you need to submit principal amount at regular intervals, generally every month. The interest rate is compounded quarterly. When you withdraw the amount after maturity period, you will get the total amount, including principal and the interest. I found that the site has detailed information about the recurring deposit calculations.

The minimum lock-in period for recurring deposits is 6 months and the maximum is 10 years. Generally, premature withdrawal is not allowed in recurring deposits. But, there is a provision for premature withdrawals. There are certain pros and cons associated with it. Let us discuss them in detail here.

Pros of Premature Withdrawal

  • If you are in need of money, you can opt for premature withdrawals. The benefit of premature withdrawal is that you will get the entire amount, along with the interest. You can meet your requirement by breaking your recurring deposit.
  • Unlike a savings account, you get impressive interest rates on recurring deposits. This means you can accrue lucrative interest on the principal amount. Since the interest is calculated quarterly, you can withdraw the amount at any time and you will be liable to get the interest
  • If you want to withdraw a partial amount of your investment, you can do so if you have a recurring deposit account in a post office. But, the only condition is that your account should be at least 1 year old. Moreover, you can consider this withdrawal as a loan that you can repay back as a lump sum.

Cons of Premature Withdrawal

  • As mentioned earlier, premature withdrawals are not allowed in recurring deposit schemes. But, if you plan to do so, the interest rate will be deducted by 1-2%. This means you will the invested amount but the interest will be deducted. This is the penalty charge. For example, the bank offered 8% interest rate on the recurring deposit scheme for a certain time. If you withdraw the amount before maturity period, the interest rate will be 6-7% at the time of withdrawal.
  • Apart from a penalty, incentives offered by the banks are also canceled. These incentives differ from bank to bank. As premature withdrawal is against the rule, the incentives will be canceled as per the rules and regulations.
  • The interest rate is calculated on a quarterly basis. Hence, if you opt for premature withdrawal before 3 months of completion of the RD account, you will receive no interest at all. You will be entitled to receive the principal amount only.

Recurring deposits have pros and cons associated with it. One of the lucrative features is that the account owners can avail loan or overdraft facility against the deposit amount. RD will serve as the collateral for your loan. 80-90% of the deposit amount can be availed as a loan by the client.

Changes in payday loan

Payday loan is the best type of loan, which help people in their emergencies. This type of has many other terms such as unsecure loan, short term online loan, and cash advance loan. The idea of this type of loan is to give the money and get it back on next payday. This type of loan has no guarantee required such as the borrower has no need to submit any property papers or vehicle and that is why people call it unsecure loan. There was a time when people used to visit the lender’s store to apply for the loan but now there is no need to do that. A person can apply for this type of loan online through websites and that is the reason why people call it online loan. It is also being called short-term loan because this is the only type of loan in which people can borrow money for short time.

There have been many changes in payday loan with time. The main idea was to get the money on next payday but now some companies are giving the option of returning the money in installment. In the past people were used to go to the lender’s office to apply for the loan but now there are many online websites and a person can apply for the loan from his home through internet and by using laptop and smart phone.

In the past, lenders were giving this type of loan to only those people who were employee and doing job. Now there is no need for the borrower to have a job. A person who is self-employed and have a good monthly income, he can also apply for payday loan. They will just have to give the proof of the income to lender. The reason for making these changes is to make things easier for people. Applying for payday loan is not very hard. It does not need too much time and energy. Many different websites have diffident terms and conditions for this loan. They have different interest rates and different amount of loan amount. If you want a company with minimum interest rates, you will have to search for it.

The website of money lending company will have application forms given on the website. The borrower will have to fill those forms with personal information such as name, age, security number, or ID card number. It will also require job details of the borrower with monthly income also valid account number, which the borrower is using currently. Payday loan is the best way to borrower small amounts for house repairs, car repairs, school fee and wedding rings and such other reasons.

There are some conditions to apply for this loan such as the person who is applying should be the age of 18 or more. He should also have a full time job and the monthly income should be $1000 maximum. It is also important for the person to be the citizen of the state from where he is applying. For more information, click here