Finding Legit Money Lenders In Singapore: FAQs
When looking to take out personal loans, finding a legit money lender who is offering you the best personal loan rates can be a task. You may have tons of queries, right from the legitimacy of the money lenders to how the process is carried out and many more. Get answers to all your questions right here and borrow the best personal loan in Singapore, worry-free!
Why borrow personal loans from money lenders?
Personal loans are offered by all major financial institutions, including banks. But licensed money lenders have an advantage over the rest of the organisations. Money lenders can offer you the best personal loan rates, thanks to government policies, and that’s why they are able to provide you with the best personal loan in Singapore.
What is the difference between personal loans offered by banks and those by legal money lenders?
Money lenders are different than traditional organisations like banks in the following ways:
● Easy and quick approval and application process
● Lower interest rates as per government rules
● Understanding approach when it comes to low credit scores, late repayments, or default payments
● Financial counseling when required
Where can I find a money lender with the best personal loan rates?
There are many good money lenders in Singapore. You can search for legal money lenders online. Or even check about the personal experiences of friends and family. Most legal money lenders will offer good personal loan rates compared to other organisations.
The best is to visit the money lenders’ offices and have personal conversations to get more understanding about the terms and conditions.
How do I know if a money lender is legal?
Money lenders are supposed to register on the Singapore government’s MinLaw website. So, if you decide to go ahead with a money lender, you can visit the website and check if the organisation is listed and that the registration is valid. Once you get this out of your way, your further process will become safe and secure.
What are the red flags when choosing a money lender?
You must not go ahead with a money lender if you come across or experience any of these things:
● If there is no registered office
● If the money lender discourages you from getting a legal contract made
● In case the money lender rushes you with the process without giving you complete clarity of the process or the contract
● If they treat you badly
What happens after I find a good money lender?
Once you have narrowed down on one money lender that you would like to go ahead with, you can meet the money lender and discuss in detail a financial repayment plan. All legal money lenders will provide you with financial counseling services.
What documents will I need to submit?
A legal money lender asks for your basic identification documents such as proof of identity, address, income, and so on. Remember, a legal money lender will return your documents. So you don’t need to worry about losing your documents or compromised privacy if you are approaching a licensed money lender.
How long do loan approvals take?
Although it varies for different money lenders and also the applications, usually, it will go faster than a bank. Once you apply for the loan, the money lender will evaluate your application. If the basic criteria are met, they will connect with you.
How do legal money lenders deal with defaulters or late payments?
Legal money lenders are rather compassionate and considerate when it comes to unpleasant situations such as default or late payments. Unlike the money lenders who are not registered, or even the banks that are more stringent with the rules, licensed money lenders will help you re-evaluate your financial position and create a repayment plan for you. So, legal money lenders are known to have your back in case your situation goes bad.
All in all, a legal money lender is your best bet when it comes to borrowing a personal loan. Once you check all the boxes about their legal status, you can go ahead with a money lender that you feel is the best for you. Remember, ask them what you must without any inhibitions and study the terms and conditions properly. When you are alert, borrowing a loan can alleviate your stress, and not add to it.