How to Make Sure A Moneylender is Legal?

The story shares several ways to check if the moneylender you find is legal.

If you are short of cash right now in Singapore, it is the best and safest choice for you to only look for a legal money lender. A legal money lender is not very hard to find, and they are always available, so people can always get a loan from a respected loan provider whenever they want to. If you want to find a legal money lender in Singapore, there are a few things you can do to make sure that you get what you want.

The first thing for you to make sure is you are dealing with a legal money lender. If go to national banks to get a loan is your choice, you can sure that you are dealing with a licensed business. But if you do not want to take this route, and instead go to moneylenders to get a loan, you have to ask the money lenders if they are legal. Some money lenders may get offended when you inquire about their license status, so it is best for you not to go to illegal money lenders looking for a loan.

Another way for you to check and see if your lender is licensed to give out loans is to contact the Registry of Moneylenders. Every licensed legal money lender in Singapore has to register with this service in order to conduct business as a licensed individual. If your lender is not registered with this service, then it is not a legal moneylender. It is possible for them to fake a business certificate, but there is no way for them to trick the Registry of Moneylenders, so if you get in contact with this service, they can always find out the truth for you.

One of the most basic and common sense ways for you to check out if a service is legit on a basic level is to see if the service requires to sign contracts in order to get a loan. If there is no contract, it is a sure sign that something is wrong. If you are in this situation, you need to go somewhere else.

Interest rates can also indicate whether a lender is legit or not. Interest rates for legal loans are usually very low, no matter what kind of loan it is. If you go to a service, and the service has a high interest rate, five percent or higher, then it is a sign that you are probably dealing with a loan shark trying to trap you into paying interest for the rest of their life. If you only deal with a legal money lender in Singapore, you don’t have to worry about having to pay enough interest on a loan to bankrupt. Licensed legal lenders also normally provide better service to their customers than places that are not licensed.