Things You Should Know about Legal Money Lender in Singapore

Posted by instantcreditsg on January 12th, 2016

In recent years, loan industry has gained a huge development in Singapore. Seeking help from a legal money lender could be a nice idea when you need extra money to pay off your daily bills.

What is a legal money lender in Singapore?

A legal money lender means that it has met the requirements which are set by the government for the type of business. It also means that any services that the lender offers you are legal. If there is any dispute, you can follow up with the authorities due to they have a database of these legal moneylenders.

You may also want to know how much money can you loan?

For secured loans, you can apply for a loan of any amount. For unsecured loans, you can obtain:
1.Up to ,000, if your annual income is less than ,000;
2.Up to 2 months’ income, if your annual income is ,000 or more but less than ,000;
3.Up to 4 months’ income, if your annual income is ,000 or more but less than 0,000;
4.Any amount, if your annual income is 0,000 or more.

The law requires money lenders to explain the terms of a loan to you in a language you understand and to provide you with a copy of the loan contract. Make sure you fully understand the terms of the contract, particularly, the repayment schedule, the interest rate charged and the fees applicable.

Interest rates can also indicate whether a lender is legal or not. Interest rates for licensed loans are usually reasonable, no matter what kind of loan it is. If you go to a service, and the service has a high interest rate, five percent or higher, then it is a sign that you are probably dealing with a loan shark trying to trap you into paying interest for the rest of their life. If you only deal with a licensed money lender in Singapore, you don’t have to worry about having to pay enough interest on a loan to bankruptcy. Licensed lenders also normally provide better service to their customers than places that are not licensed.

When looking for a legal money lender in Singapore, you should also pay attention to the reputation. Make sure that the money lender has a good reputation. The reviews of these moneylenders from previous customers may help you to choose the best lender that you want to work with. It is advisable to compare their services when choosing moneylenders. This is the best way to obtain excellent services from a number of moneylenders available in the market.