Irrespective of your financial needs, it is advisable to only borrow money from a licensed money lender in Singapore. Several benefits are associated with borrowing from a licensed moneylender. Every other day, you come across reports on people who have been harassed in the name of repayment by illegal money lenders or whom they term as ‘loan sharks’. However, when you borrow only from licensed money lenders, you do not have to worry about such troubles.
Let us take a quick look at some of the special benefits of borrowing from a licensed money lender in Singapore.
No trucks with harassment for repayment
While they can offer fast cash, unlicensed money lenders often charge high rates of interest and also use harassment to chase after borrowers on the pretext of non-payment of loans. However, you can avoid all this by borrowing only from the licensed money lenders. A licensed money lender in Singapore has to comply with the government norms and laws. In case the lender fails to comply with any of the laws framed by the Singapore government, their license can be cancelled and executives might even have to face severe punishments including jail terms. As far as repayment is concerned, licensed money lenders will offer you complete guidance so that you are able to repay the loan.
Avail lower interest rates
One of the biggest differences that you will experience on borrowing from a legal money lender is the low interest rate. Illegitimate money lenders often impose extremely high interest rates in order to reap greater profits. However, legal money lenders have to follow the rules set by the “Registrar of Moneylenders” on the interest rates, fees and maximum amounts that can be disbursed to loan applicants for any quick loans in Singapore. The maximum interest rate that can be applied is 4% and all legal money lenders will have to comply to it. Everything works according to a set procedure and in compliance with the laws.
Save your personal information from falling into the wrong hands
Your personal information is critical for your financial security. However, when you borrow money from illegal money lenders, the chances of a data breach or misuse of your information is extremely high. Private information such as your SingPass log in details should never fall into the wrong hands. Thus, you will always find that legal money lenders in Singapore will only carry out any SingPass verification right in front of you. The licensed money lenders in Singapore will always verify your last salary before deciding upon the loan amount to be disbursed.
Always seek loans from a licensed money lender in Singapore to save yourself from unnecessary hassles and hefty interest rates.