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 https://easycredit.com.sg.

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.

 

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