Are you looking for a loan? Well, if you are looking for a financial institution that can offer you a fast cash loan in Singapore, then licensed moneylenders are the ones for the job. Unlike loansharks, licensed moneylenders can offer an ethical moneylending practice that will not put a financial strain on you.
If you are interested in making a loan with a licensed moneylender in Singapore, then here are eight reasons as to why you are making the right choice.
- Licensed moneylenders have a fast loan approval rate.
You may already be familiar with this trait of moneylenders. Unlike banks, licensed moneylenders can approve your loan in less than an hour, and you can receive the money right away. As long as you are eligible and have the required documents, you can have the assurance of fast loan approval from a licensed moneylender.
- Licensed moneylenders have less stringent requirements.
Do you have a bad credit score? Are you looking for a legitimate lender who can grant your loan right away? Well, with licensed moneylenders, you can be assured of less stringent requirements. Most licensed moneylenders can grant your loan even if you have a bad credit score. As long as you have the required documents, a stable income, and employment, licensed moneylenders can grant you your loan.
However, be cautious of moneylenders who grant your loan without exercising due diligence. One example of a neglectful practice is that the moneylender grants your loan without requiring any form of documents or contract signing from you.
- Licensed moneylenders are expected to treat their clients or borrowers respectfully and courteously.
Like in other businesses, clients or borrowers should be treated fairly and respectfully. Licensed moneylenders are not allowed to make any form of harassment or threat to their borrowers. Also, licensed moneylenders are not allowed to withhold any form of identification from the borrower, ask for the borrower’s SingPass user ID or password, or any form of questionable practice.
- The Government of Singapore regulates the interest rates of licensed moneylenders.
Paying off a loan can be difficult. It can be more difficult if the interest rate of licensed moneylenders is unfairly high. Thus, to protect borrowers from unfairly high-interest rates, the Government of Singapore has set regulations on the moneylending practice.
For the interest rate, licensed moneylenders cannot charge an interest rate that exceeds 4% per month. The limit applies regardless of whether the loan is secured or unsecured, and the income of the borrower. For interest-rate on late repayments, licensed moneylenders cannot charge an interest rate that exceeds 4% per month for each month the borrower was late in repaying the loan.
For more information on the interest rates, you can visit the website of Singapore’s Ministry of Law.
- Licensed moneylenders are expected to be transparent in their transactions.
You may have heard of stories where loan sharks offer borrowers a loan without any form of contract signing. Sounds convenient, right? Well, while it may sound convenient, it is a financial trap that lacks transparency. This form of scam from loan sharks allows them to create unfairly high-interest rates and exorbitant fees.
Another advantage when getting a loan from a licensed moneylender is you can have the assurance of transparency. Licensed moneylenders are expected to explain to their clients the terms and conditions of the contract. They are not allowed to force or to ask you to sign a blank or incomplete contract. Also, after signing the contract, you must receive a copy of the same contract you signed.
- Licensed moneylenders can only charge three types of fees.
Unlike loan sharks and unlicensed moneylenders who charge confusing fees, licensed moneylenders can only charge these three types of fees:
- A penalty fee not exceeding $60 for each month the borrower was late in repaying the loan.
- Court-ordered legal fees and costs for a successful legal claim by a moneylender when recovering an unpaid loan.
- An administrative fee that should not exceed 10% of the principal amount of a granted loan.
- You can be assured of confidentiality.
Threats and harassments are a common practice among loan sharks and unlicensed moneylenders. These threats can even extend to the borrower’s friends and family, which can embarrass them or put them in a lot of stress. Another advantage when dealing with licensed moneylenders is your personal information is safe and secured. Licensed moneylenders will not disclose your personal information or the status of your loan without your consent.
- You will not be bothered by illegal advertisements.
Have you ever received a call, an email, or SMS stating that you are eligible for a loan? Do you know that this type of moneylending advertising is illegal in Singapore? Licensed moneylenders can advertise through only three types of channels, namely: online or printed consumer or business directories, websites owned by the moneylender, and placed advertisements that are within the business premises of the licensed moneylender.
Any form of advertisement like flyers, SMS, calls, or emails are not allowed. It is advisable that you should disregard these advertisements and report these to the proper authorities.
Looking for a fast cash loan?
As stated, licensed moneylenders have the advantage of approving a borrower’s loan faster compared to other financial institutions. If you are looking for a recommended and licensed moneylender, then click this link, Fast Cash Loan. The company is one of the most recommended moneylenders in Singapore, and they can offer to grant your loan with flexible repayment terms.