If you’re looking to borrow money, you may have heard that it’s safer to go to someone licensed by the Moneylenders Act and Rules Singapore than to look for someone on your own.

However, this isn’t always the case. While there are some benefits to borrowing from a licensed moneylender, drawbacks need to be considered before accepting a loan from one of these professionals. Find out if borrowing from an unlicensed “moneylender near me” or an individual would be safer for you in this article about the safety of borrowing from licensed money lenders in Singapore.

Do your research before borrowing

If you’re facing urgent financial needs, borrowing can be tempting. However, before you take out any loans or secure personal property as collateral for a loan, do your research and seek advice from professionals. Moneylenders must disclose all information about their rates of interest and charges upfront.

This includes penalties such as late payment fees and default interest rates which apply if you fail to repay on time. You should also find out what happens if you fall behind on payments or if there is an error in the calculation of the interest rate charged. There may be different rules depending on whether you borrowed from a licensed moneylender or not, so make sure that you know your rights first!

What to consider before taking up a loan?

Many factors come into play before you take up any loan. For example, how much you require, how long you need to repay, your monthly income, etc. You must assess all these factors before taking up a loan and ensure that you can repay it comfortably. It is also equally crucial for you to check on which interest rate your preferred lender charges and whether they comply with the Moneylenders Act or not.

  1. Remember that you need more than just good credit

Moneylenders note more than just your credit score when deciding if you’re worthy of a loan. Other factors include Your income and ability to pay back a loan; The value of your collateral, including your house and car; How long you’ve been working in Singapore (even if you’re only here for a short time); And even how many people depend on you. Even with good credit, getting approved for a loan could be difficult.

  1. Consider what you want the money for

It would be best to consider what you want to use for your loan. This will help you decide if you want a short-term loan or if you want to finance something that can be used long-term. Do not just focus on how much and when; think about how long. Think about why you need an emergency cash loan and your short-term goals.

How much do I need and when will I get it? Is there any way to reduce my expenses so that I don’t have to take out an emergency cash loan? If you know exactly how much you need, you will also learn how much interest and fees you will have to pay. Be realistic with yourself when determining what amount of money, you need. If possible, try saving up some of the money before going in for a loan in Singapore. That way, your monthly expenses would be reduced, and so would your reasons for taking out loans in general.

  1. What are your repayment options?

Generally, there are two ways for you to make a repayment. The first is by having an intermediary deduct monthly payments from your bank account. Alternatively, you can schedule individual weekly or monthly visits with your loan officer at a specified place and time; payment will be made during these meetings.

  1. Can you afford the interest rate and fees?

You don’t want to end up in a situation where you need more money because your loan is costing you more than you can afford. Borrow only what you can afford, with room for interest and late fees. If that means borrowing just enough for one month of living expenses, then do so. The goal is to avoid getting into debt—and having a plan in place will help you achieve that goal. Keep track of how much money you owe each month and any penalties incurred.

If things go wrong and you fall behind on payments or incur unexpected costs, you’ll know how long it might take to pay off your loan or credit card balance. As long as you have a repayment plan that factors all applicable charges (including late fees), there should be no surprises when paying back your loans or credit cards.

  1. Understand all your repayment options

Before entering any legal transaction, you must have all your finances to understand your repayment options. Licensed moneylenders provide cash loans which are not just quick but convenient too. Since you may not be aware of your repayment options, ask for an estimate on monthly repayments before borrowing funds.

  1. Identify a suitable licensed money lender

You must identify a suitable licensed “money lender near me” who understands your financial situation and will provide adequate solutions. Firstly, find out which Singapore’s authorized financial institutions issue moneylending licenses. Secondly, make sure they are regulated by MAS (Monetary Authority of Singapore).

A regulatory agency will register a certified moneylender. This implies they’re regulated and bound by government rules and other laws governing their operations, lending standards, and interest rates, among other things. If you’re not sure if an agency is licensed, look into whether it’s been registered with any regulatory bodies. You can also check their registration status on the websites of these agencies.

  1. Get good references before taking a loan

An excellent way to prevent yourself from getting into trouble is to get reliable references from your friends or family members. If you don’t have anyone who can give you a good connection, think of someone in your circle who has had experience dealing with such loans and ask for their recommendation. Check for reputation; if you can gather information about other borrowers who have gone through that moneylender, do so. That will help you assess whether or not they are indeed reliable.

If you’re looking for the best moneylender near me, Avis Credit is the licensed money lender which offers the best deals on personal and business loans. Get in touch with us to know more – call us at +65 6883 2017 or write to us at contact@avismoneylender.com.sg. Our team will be happy to assist you with your money lending needs.