Moneylending revolves around getting some extra cash to cater to emergencies such as medical, car repairs, flood repairs, and the like. In the current world, these emergencies arise daily, and there is a need to know where to run to sort them when they arise.
Moneylending services in Singapore are practiced by many companies, mainly in the short term and, in most cases, high-interest rates than banks.
However, all other things are held constant; a good moneylender will offer a solution in a short span compared to the financial institutions because of the fast application and appraisal process involved.
Still, it is imperative to understand a good moneylender because many of them are out to exploit innocent citizens who are in a rush to access urgent financial assistance. Therefore it is essential to look for legitimate and licensed moneylenders who will offer excellent financial solutions.
One can get this information from people who have used the services in the past or through research from Google but carry out due diligence.
How to determine a Legitimate Moneylender
There are several ways that one can be able to differentiate a legitimate moneylender from an unlicensed one. Some of these include
- Physical Location- A licensed moneylender has a physical office, where they direct their clients on how they can find them. They also insist on face-to-face interaction before disbursement of the loans.
This is contrary to the illegal moneylenders, who do not have a physical office in most cases. They are known as the briefcase companies, and they are always in a hurry to disburse the loans even when the borrower has not fully understood their terms and conditions.
- Form of Advertisement-Any legal moneylender publishes its name in the public directory, where it can be easily accessed by customers requesting such. They also advertise themselves on the billboards and give their contact details without hiding any information.
This is not so for illegal companies. They mainly advertise themselves through Sms’s use of emails, which the ministry prohibits, yet they work against the rules laid down.
- Interest Rates– Whereas it is presumed that the interest rates chargeable by the moneylenders are high, it is indeed true, but then they are regulated by the ministry to operate on specified limits which are within reach of the borrowers. This is not the case for Illegal moneylenders because they charge exorbitant interest rates far above ordinary citizens’ reach.
These are just but a few pointers on how one can differentiate between a legal and an illegal moneylender in Singapore. It is also an eye-opener that dealing with a legal Moneylender is of paramount importance. So, the question arises as to Why Must I Borrow from a Legal Moneylender?
There are many reasons why it’s necessary to borrow from a legal moneylender, and some of these are stated here below.
- One does not Experience Unnecessary Harassment from Debt Collectors.
It is not all times that our plans go as expected. One can plan to pay within a specified period, but there happens to be an income loss during the period. Debt collectors can be sent to harass and intimidate you into paying the loan. When it comes to a licensed Moneylender, this does not happen. A licensed moneylender will carry out their collection duties professionally and carry due diligence to the end. You will not experience any insults that could lead to physical harassment regarding illegal moneylenders.
- Processing Timelines.
The processing time for legal moneylenders is generally fast compared to other financial institutions, including banks. Therefore one’s emergency will be sorted within the time frame, and in most cases, this happens within the same day for some moneylenders.
- Confidentiality of information is assured.
Do you know that illegal moneylenders do not have control of your confidential information? In the cases of legal moneylenders, you rest assured that your personal information is handled with the confidentiality it deserves and cannot be shared outside their territories.
- Affordable Interest rates.
The ministry t regulates the interest rates charged to the customers. However, the illegal moneylenders have the freedom to set high-interest rates at the borrower’s expense and end up becoming an expense that one can hardly handle. Thus, it is a must that one borrows from a legal moneylender.
- The Registry regulates licensed Moneylenders.
The fact that a licensed moneylender operates under an umbrella set up by the government, which states the rules and obligations and their scope of operations, is a further assurance that one is safe. Should there be any eventuality, one can rush to the government for support. In the same case, the government will bridge in for an amicable solution within the shortest time possible.
Since there are thousands of money lending institutions in Singapore, there is a need to research and work with reputable, regulated, and licensed ones to avoid falling into the hands of scammers, generally known as loan sharks. Amongst the most reputable money lending institutions in Singapore is Avis Credit Pte Ltd.
It is one of the organizations that offer fast financial solutions, is regulated by the Registry of Moneylenders under the ministry of law, and has all the information you require when making an application on the website. To know more about Avis Credit Pte Ltd, please visit https://avismoneylender.com.sg/
If you want to be financially safe with any moneylender in Singapore, always follow the few commandments to identify a legal money lender. You are assured of working with the right company.
Remember that legitimate ones have uniform requirements spread all over Singapore, such as the following;
- Having proof of income for the last 12 months
- Have proof of identity
- Being involved in a full-time job and proof of address are very important.
Next time you are out there looking for a moneylender to help you sort the emergencies, Avis Credit Pte Ltd is the company of the day, and you will enjoy the services not only for today but in the years to come.