Licensed moneylenders play a significant role in Singapore’s financial landscape, offering borrowers alternative options when traditional banks may not be suitable. In this article, we will explore the concept of licensed moneylenders, how to differentiate them from unlicensed ones, and why borrowing from licensed moneylenders can be a viable choice. At Avis Credit, we aim to provide you with valuable insights to help you navigate the lending landscape safely.

What are Licensed Moneylenders?

Licensed moneylenders are individuals or entities authorized by the Ministry of Law in Singapore to conduct the business of moneylending. They are regulated by the Registry of Moneylenders to ensure a safe and professional moneylending industry. The Moneylenders Act defines licensed moneylenders as those who lend money in consideration of a larger sum being repaid, excluding exempted moneylenders.

Where to Find Licensed Moneylenders?

To ensure your safety and protection, it is crucial to borrow from licensed moneylenders. You can find a list of licensed moneylenders approved by the Ministry of Law on their website. Currently, Singapore has 153 licensed moneylenders, including reputable names such as Accredit Pte. Limited, Credit King Pte. Ltd., and Lending Bee Pte. Ltd.

How to Borrow Money from Licensed Moneylenders?

To borrow money from licensed moneylenders, follow these steps:

  1. Verify their License: Before engaging with a moneylender, verify their license by checking the list of licensed moneylenders on the Ministry of Law’s website. Avoid responding to loan SMS or social media messages, as licensed moneylenders are not allowed to advertise through these channels.
  2. Visit Their Website: Licensed moneylenders are permitted to advertise their products on their own websites. Check their website for information on interest rates and loan terms. Be cautious of moneylenders advertising through unauthorized channels, as they may be unlicensed or operating in violation of regulations.
  3. Face-to-Face Appointment: Licensed moneylenders are required to arrange a face-to-face appointment at their registered office address. Online loans are not permitted. During the appointment, the moneylender will conduct a physical verification of your identity. They may also request a credit score report from Credit Bureau Singapore, which you may need to pay for.

Difference Between Licensed and Unlicensed Moneylenders:

Differentiating between licensed and unlicensed moneylenders is crucial to protect yourself from fraudulent activities. Here are four key differences to look out for:

  1. Advertising Channels: Licensed moneylenders can only advertise through authorized platforms, such as business or consumer directories, their own websites, or advertisements within or on the exterior of their business premises. Unauthorized advertising channels, such as text messages, phone calls, social media platforms, or flyers, may indicate unlicensed or rule-violating moneylenders.
  2. Face-to-Face Verification: Licensed moneylenders must meet borrowers in person at their approved place of business to verify their identity before granting a loan. Loan transactions conducted fully online or at venues other than the approved places of business are prohibited.

Reasons to Borrow from Licensed Moneylenders:

While banks may be the first choice for personal loans, there are several reasons why Singaporeans opt for licensed moneylenders:

  1. Exhausted Unsecured Borrowing Limit: Some individuals may have reached their unsecured borrowing limit with banks, making licensed moneylenders a viable option for additional financing.
  2. Different Loan Types: Licensed moneylenders offer a variety of loan types that may suit specific needs better than traditional bank loans. They provide different repayment schemes and interest plans, catering to diverse financial situations.

Licensed moneylenders play an essential role in Singapore’s lending landscape, providing borrowers with alternative options for financing. By understanding the differences between licensed and unlicensed moneylenders and following the proper borrowing process, you can navigate the lending industry safely. At Avis Credit, we prioritize your financial well-being and encourage responsible borrowing practices. Contact us today to explore suitable loan options tailored to your needs.

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