In Singapore a lot of people go for a quick loan to be able to face unpredictable expenses or financial emergencies. In this context it is essential to understand the huge difference between a legal money lender and an illegal one because if you do not you might suffer the consequences. The legal and best licensed moneylender is the one regulated only by the Ministry of Law and every aspect should be respected regarding the interest rates, the taxes and the payback of the money. In case of dealing with illegal moneylenders you have a high chance of abuse, extremely high interest rates and harassment. Therefore, for your financial safety and security collaborate with a legal and licensed moneylender.
A legal money lender in Singapore is a person or a company authorized by the Ministry of Law (also known as MinLaw) which offers the possibility to borrow money online by natural or legal persons. Only the registered money lenders have the right to operate such financial services. All of the money lenders should respect the regulations to protect the borrowers. For example, a legal and licensed money lender is not allowed to charge hidden fees or use abusive methods to recover money. You can see if the lender is not legal by this but if you end up in this scenario it is a little too late therefore you should really check all the important aspects before you borrow money.
The Ministry of Law, MinLaw, is always one step ahead and takes into account every lender’s activity so that they can intervene in dangerous situations. Any illegal activity can result in license suspension or criminal penalties. Therefore, it is essential for anyone seeking a loan in Singapore to check whether the institution is licensed by consulting the official list published on the MinLaw website.
Borrowing money from a safe source is essential, therefore a licensed money lender may bring a lot of advantages when you are in need of an amount of money. Not to mention it is way more efficient to work with a legal and licensed money lender than an illegal one, even though the illegal one might give you better offers at first as a scam to attract you. Therefore the first advantage is the fact that the licensed money lenders work under the control of the Ministry of Law which means that they offer complete transparency regarding the taxes, the interest rates and the contractual terms. So, this means that you will not be surprised with hidden taxes or abusive conditions.
Second of all, the process of application is way more simple and also quicker being made to respond efficiently to emergency situations. A lot of the licensed money lenders offer you the possibility to apply online and get the approval on the same day.
Then another advantage is the fact that you as a borrower will benefit from legal protection when borrowing money from a licensed and authorized company. All of the contracts are as clear as possible and in case of any inconvenience it can be solved legally. And if it is not obvious, the legal and licensed money lenders are not legally allowed to resort to threats and harassment.
So, long story short: choosing a licensed money lender means safety, fairness and the respect towards you as a borrower.
The first step in checking if you are dealing with a licensed money lender is to check them on the official list published by the Ministry of Law. This list is available for everyone that clicks on their official site and it contains all of the licensed money lender names. So, the checking is quite easy because if the name does not appear on the list mentioned previously, the money lender is not licensed, authorized and legal.
It is important to see the signs of unauthorized money lenders as soon as possible, they usually ‘promote’ themselves by SMS, WhatsApp or any other social networks. Promoting is the first sign a money lender is not legal because the best licensed moneylender is not allowed to promote themselves. But if you make a mistake and talk with the money lender after you get a message, you still have a chance to see they are not authorized because they will try to put a lot of pressure on you to sign the contract as soon as possible or will request taxes in advance.
The Ministry of Law mentions itself that ‘All other channels are prohibited. In this regard, the advertising rules can help you differentiate between licensed and unlicensed moneylenders. If you receive flyers, SMSes, emails or other forms of advertisements which are not permitted under the rules, these would be from either licensed moneylenders operating in violation of the rules, or unlicensed moneylenders.’
To make sure you are dealing with Singapore's best licensed moneylender, as mentioned previously you have to check the official list of the Ministry of Law. A legal and licensed moneylender is not allowed to promote themselves through social media or messages, is transparent with the contracts and interest rates and it should be on the official list as a mandatory aspect. You have the right to a written contract, a copy of it, and clear information about interest and penalties. Checking the lender's license protects you from fraud and abuse and gives you the assurance that the loan is legally regulated.
Based on all of the aspects mentioned above, borrowing money from a legal money lender in Singapore is justified. If everything is legal and the money lender is licensed and authorized by the Ministry of Law you will have a lot of advantage, but most importantly you will borrow the money in a safe way. Your safety should be above any amount of money.
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