If you are in need of cash urgently, you can turn to licensed money lenders. They offer fast, affordable loans with few restrictions, and fewer fees than banks.
They are also more reliable and easier to deal with than loan sharks (unlicensed money lenders). However, you should be aware that unlicensed money lenders may not follow any legal regulations, which means they can increase the interest rate as much as they want.
The best way to avoid being ripped off by unlicensed money lenders is to do your homework before you borrow from them. This includes examining their fine print, asking for multiple references from friends and family, and reading customer reviews to ensure that you can trust them.
Licensed money lenders are registered with the government and must abide by laws governing their operations, lending requirements, and interest rates. They also must be able to provide you with information on their registration status, so you can verify them before you apply for a loan.
In Singapore, licensed money lenders are regulated under the Personal Loans Act. The Act limits the maximum rate of interest they can charge for a lapsed loan to 4 percent per month.
A reputable money lender will have an effective customer service team and clear terms and conditions for their loans. They should also be transparent about their charges and have a reliable online payment system that works with government agencies.
Lastly, licensed money lenders should not require you to pay any additional interest or fees for late payments on your loan. In addition, they should be able to provide you with the total cost of your loan upfront and clearly explain how they calculate your interest rates. licenced money lender