Have you ever considered borrowing money from a moneylender? If you found the idea scary, you are not alone. Most people do not view money lenders favourably. Much of this apprehensiveness doesn’t stem from personal experiences, but it originates more from how society perceives moneylenders. As their business involves giving and taking cash, and nothing else, we assume that they will somehow cheat us of our money like a fast cash loan in Singapore or involve us in a scam.
Truth be told, the idea of visiting a legal money lender in Singapore is not as scary as it sounds and here are the reasons why.
Money lenders are perfectly legal
Yes, you read that right. It is perfectly legal for money lenders in Singapore to lend money to borrowers provided they are registered and licensed. All licensed moneylenders are strictly regulated by the government and face severe penalties if they are found to be involved in any misconduct. This means that you can safely borrow money from a licensed money lender without fear of being cheated or unfairly treated.
Money lenders are not loan sharks
Moneylenders are not loan sharks. There is a clear distinction between them. While moneylenders aim to make a living by helping people who are in need of money, loan sharks are there to profit from other people’s misfortunes. Licensed moneylenders are bound by law and closely monitored by relevant government departments and agencies. They want to win the trust of their customers so that they can build a lasting business.
Moneylenders do not charge exorbitant interest rates
Contrary to what you may have heard or imagined, licensed moneylenders do not charge exorbitant interest rates. The Singapore government has placed a cap of 4% for monthly interest for moneylenders. At the same time, the administrative fee (which they are allowed to charge upfront) must not exceed 10% of the total loan amount, and late payment fee must not exceed $60. Moneylenders are required to strictly comply with these limits. If any money lender charges you even a cent more, you can report them to the concerned authorities.
Moneylenders will not harass you
You may have heard of loan sharks harassing defaulting customers and making their life extremely difficult. This doesn’t happen with legal money lenders. They will not harass you if you are unable to pay on time. They will simply charge you a late payment fee. If you refuse to pay up after repeated requests, they may report you to the police. But no one will come to your home or office and threaten to hurt you.
Borrowing is quick and easy
Many people find the process of applying for any loan daunting, even if it is a quick loan. They have heard how banks scrutinise every little detail and take days to process loan applications. This is not true for money lenders. While they do require applicants to submit documents like pay slips and credit history, they will not do any excessive detective work. In most cases, the applications are approved within a day and the loan is delivered to the customer’s bank account within 24 hours.
Therefore, never hesitate to approach a legal money lender whenever you need money urgently. It is perfectly safe to borrow money from licensed money lenders in Singapore.