Something You Need To Know About The Licensed Money Lenders In Singapore

Posted by marywu on June 5th, 2017

We have all, at one time or another, needed a loan. Whether it was to buy a house, a car, or just get enough money until payday, we have turned to licence money lender Singapore. Some money lenders have been reasonable about the interest and fees. However, there are those money lenders who are unscrupulous and who will take advantage of your situation. By doing your research ahead of time, you can avoid paying too much money for a loan. Unscrupulous money lenders, or loan sharks, as they are also called, take advantage of those who have poor or no credit. They will want to charge a high-interest rate and ask for large fees upfront, in some cases. A lot of times, if you do not qualify for a loan, a money lender will take your down payment and get you a loan but the interest rate could be as high as thirty-four percent. Protecting yourself from unscrupulous money lenders will help save you money and keep you from being a victim of these money lenders.

Before obtaining a loan, check if you qualify for a loan at your bank or credit union. Knowing that you already qualify for a loan before going to the moneylender will give you more negotiating power. In addition to seeing if you qualify for a loan at your financial institution, check the Better Business Bureau. The Better Business Bureau can let you know if there are any consumer complaints against a moneylender. If you are planning on buying a used car, compare the prices for the model and make of the car you are considering to purchase. Another good idea is to compare fees from different lenders so that you can get the best loan. If a moneylender wants a large fee upfront or wants to charge excessive fees, this means that this lender is unscrupulous because lenders know that their customers will not have enough money to pay large fees upfront. Legitimate lenders will put their fees towards the end of the loan, which is why some loans have balloon payments later.

Before signing any contract, check with a lawyer to be sure that the contract is fair and reasonable to both parties signing it. If you cannot afford a lawyer, a legal aid attorney can look over the contract for you. Sometimes, just telling the lender that you will be having a lawyer look at the contract will make an unscrupulous lender back away from the deal. An honest licence money lender Singapore will not back away from a deal simply because you want a lawyer to check the contract.

Following these tips, hopefully, will keep you from being a victim of unscrupulous money lenders in Singapore. The most important tip is to do your research and shop around before going to a money lender so that you have an idea of how much you will have to pay.