Singapore is full of reliable, licensed moneylenders who are under the regulation of the Registry of Moneylenders. They serve an essential function in our economy, providing businesses with a quick influx of cash to expand or tide them over a rough time.
Individuals benefit from their services as well in taking out personal loans. Whether you are looking to pay the down payment on your new apartment or pay off the remainder of your medical bill not covered by insurance, quick cash loans can be a lifesaver. Given the time-sensitive and critical nature of most of these scenarios, you want to be extra sure that your moneylender has your best interests at heart. Here are some of the qualities that any good moneylender should possess.
Many moneylenders have qualified consultants who engage with you, the customer. Given that the average layman may struggle to understand the intricacies and confusing jargon in a loan contract, it is up to these consultants to explain the details of the loan to the customer. They should be able to explain the details comprehensively and clearly, without skipping over any of the terms and conditions.
Ideally, they would also be able to provide a cost-benefit analysis of the loans that you are considering. Even better would be if they considered your personal needs, and provided individualised advice based on them. Most importantly, they should be open to answering any of your questions. If any moneylender consultant begins to brush off your queries, you may have to think twice about their reliability.
Does their due diligence
Some moneylenders take pride in their willingness to conduct minimal credit checks to expedite the approval process. Some even claim to provide fast cash loans for people with less-than-ideal credit scores. Regardless, there is still a need for them to do their due diligence in examining your credit report. This not only gives them an idea of your financial situation, which can help in providing personalised advice, but also has safety implications for the moneylender. If your moneylender does not even check your credit score, it reflects poorly on their credibility.
If your business’ revenue runs dry when payday is looming, or your home needs urgent renovations, you do not have time to waste on lengthy loan approval and cash transfer processes. The main draw of moneylenders over traditional banks is their ability to provide instant loan approvals. Once the moneylender has conducted their due diligence, approval of the loan – the subsequent payout should be swift.
As mentioned before, moneylender consultants should be completely responsive to your queries. They should be upfront and take the initiative to explain the interest rates and possible fees you may incur.
Additionally, licensed moneylenders in Singapore cannot charge an interest rate exceeding 4% per month. The total charges they impose on any loan also cannot exceed the initial principal amount that you borrowed. These charges include interest, late interest, upfront administrative fees and late fees. Be wary if the moneylender seems to be exceeding these limits, or when you realise that they seem to be glossing over certain parts of the contract.
A good moneylender should have your best interests at heart and advise you on the best course of action based on your needs. They should not pressure you to take a loan for more cash than you need. A moneylender trying to convince you to borrow more money than what you initially requested can be a massive red flag.
A dependable moneylender should be helpful and advise you in picking the right loan type, as well as provide assistance in clarifying any sort of questions.
While there are several purveyors of fast cash loans in Singapore, the onus is on you to identify the most trustworthy ones to do business with. Make sure that your moneylender is licensed under the Registry of Moneylenders, and that they exemplify the qualities listed above. For a comprehensive compilation of the reliable moneylenders in Singapore, you can register for an account with Easyloan. We provide factually accurate information about financial services, including resources on the reputable moneylenders who can get you a quick cash loan in Singapore.