It has become quite common these days for people to turn to an approved money lender when the need arises for a large or small financial need. Usually, people come into contact with a money lender when an important life stage such as marriage, college, travel, or any other emergency might require us to connect with a money lender. However, as is evident with any financial transaction, due diligence must be exercised. Here are the 5 most important things to know about a authorized money lender in Singapore.
A legally operating licensed money lender
In Singapore, it is of the utmost importance that the money lender you contact is operating legally. All approved lenders are strictly regulated by the Department of Justice. A register of money lenders regulates an approved money lender in Singapore. Before going ahead with your loan, you can search the Pawnbrokers Registry to see if your pawnshop is listed and has a good reputation.
You have the power to complain
Although financial transactions can be intimidating for some, never forget that when it comes to getting a money loan in Singapore, the law gives you the right to make a formal complaint in case you notice a problem. unwelcome behavior on the part of your money lender. You should be aware that any sort of threat or tactic of persuading or withholding information is not allowed. As a borrower, you are also not required to submit your original documents. An approved money lender would only keep your scanned copies of the documents. In case of red flags, be aware that you can contact the Pawnbrokers Registry at 1 800 -2255 -529.
You can also file a complaint online by going to the Lender Registry website. Once you have made a complaint, a formal investigation will be conducted and you may need to provide more details during the investigation. But rest assured that at no time will your identity be disclosed to the money lender.
You don’t have to be a Singapore national to get a loan
In this highly globalized world, one expects there to be demographic diversity. That is why you should apply for a Singapore money loan. The law offers everyone an opportunity because of its bustling expat population.
All you need if you are not a national of Singapore are a few additional documents such as your payslip confirming your regular employment and passport as well as an employment card. Bank statements can help speed up the process of lending money in Singapore.
In the event of repeated non-payments, approved lenders can also sue you
Just as a borrower is allowed to file a complaint, a money lender can also legally sue you for repeated non-payments and no action despite warnings given by the money lender. Both parties are legally bound to honor their contract. If you find yourself in a situation where you cannot repay the installments within an agreed timeframe, it is best to discuss this with your approved lender.
You may want to consider negotiating with the money lender if you can request an extension or refinance. This will save you late penalties. This may mean that you have to incur additional costs, but it’s best to be transparent.
Approved lenders can’t charge you more than a certain amount
Regardless of how much you want to get a loan for or what your income bracket is, as a general rule, approved money lenders in Singapore cannot charge a borrower more than a certain amount of interest. The maximum interest rate that a money lender can charge a borrower is 4%.
Remember that this ceiling amount applies to both nominal interest and late payment interest. You may need to take note of a few finer details as late payment interest is only charged on the basis of the amount that remains overdue. Interest cannot be charged on the total loan amount. Besides the interest, you will have to pay applicable fees for the approved money lender. This amount is in addition to the interest you have to pay on the loaned amount.
Having clarity of all expenses from the start is the key to an easy, hassle-free loan and a good licensed money lender should make the process easier.