Features to Check in a of a Licensed Moneylender 

When it comes to borrowing money, you want to ensure that you deal with a licensed moneylender in Singapore. Why? Because unlicensed moneylenders often charge very high-interest rates and scam borrowers out of their hard-earned money.

So, how do you know if a moneylender is licensed? And what should you look for when choosing a legal money lender? The following article will explain this in detail.

1) Check the License Information

When choosing a licensed moneylender, the license itself is the first to look for. All licensed moneylenders in Singapore are registered with the Registry of Moneylenders (RML). You can check if a moneylender is licensed by visiting the RML website and searching for their name.

A crucial factor to look at is the validity of their license. Licensed moneylenders have to renew their licenses every three years with the RML. If you are unsure whether a moneylender’s license is still valid, you can contact the RML and ask them directly.

An invalid license can be a sign of fraudulent activities on the part of the moneylender.

2) Check the Reviews

When choosing a licensed moneylender in Singapore, it is essential to check the reviews. Many websites offer information on moneylenders in Singapore. You can also check the reviews yourself online and see what other borrowers say about their experiences with these lenders.

3) Check the Types of Loans Offered

If you are looking for a legal moneylender in Singapore, it is essential to check the types of loans offered. Some moneylenders only offer specific loans, such as payday loans or personal installment loans.

A payday loan is a short-term loan paid back in full at the end of every month. Personal installment loans are longer-term loans that require a down payment and monthly payments over several months or years.

It is also essential to check what type of collateral the moneylender requires for the loan. A collateral is a valuable item that the moneylender can possess if not repay the loan. Some licensed moneylenders in Singapore require collateral, while others do not. 

4) Check the Interest Rate

Interest rates are crucial when choosing a licensed money lender in Singapore. Before you apply for a loan, make sure to check the interest rate on their website or by calling them directly. 

Licensed moneylenders cannot charge more than four percent per month as a maximum interest rate. Some moneylenders charge higher interest rates, but these are unlicensed lenders.

Look at the total cost of the loan. Some moneylenders hide their interest rates in the fine print, so reading through all the terms and conditions is essential before signing the contract.

5) Check for Hidden Fees

When choosing a licensed moneylender in Singapore, it is essential to check for hidden fees. Since some moneylenders conceal their costs, it’s critical to read the terms and conditions carefully.

Standard hidden fees include processing fees, administrative fees, and late payment penalties. Most licensed moneylenders in Singapore charge a maximum of ten percent per month for late payments, but some charge even more. It is also essential to check how often the fee can be charged and what penalties you incur for late payments.

6) Check the Borrowing Limits

The borrowing limit is another essential factor when choosing a licensed moneylender in Singapore. Each money lender has a different limit, so knowing how much you can borrow. 

Some moneylenders offer loans as low as S$100, while others offer up to S$100,000. It is also essential to find out the minimum and maximum amount you can borrow.

Also, ask about the length of time to repay the loan, as this can affect the interest rate you pay on your loan. Some moneylenders offer loans with more extended repayment periods, while others require payments within a few days.

Conclusion

These are some tips for choosing a licensed money lender in Singapore. If you need to borrow money, make sure that you check all these things before applying for the loan.

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