Taking up personal loans from licensed money lenders can be daunting, especially if it is your first time. In order for you to get the best option for your financial needs, it is essential to know the qualities of a reputable licensed money lender in Singapore. These qualities help to differentiate between a good money lender who is compassionate in wanting to help you financially; or an unfavourable money lender who might bombard you with extra terms and conditions hidden in the fine print. If you are looking for reliable money lenders in Singapore, ask these key questions before you sign up for a loan.
- “How long have you been operating and registering under the Ministry of Law?”
Aside from ensuring that the money lender you are reaching out to is registered under the Ministry of Law, it is also equally important to ask how long they have been operating and registered with the ministry. The duration of company establishment; company mission; client testimonials; and quality of representatives can, to a certain extent, indicate their level of trustworthiness, depth of resource and company success. Reliable money lenders in Singapore should have enough capital and scalability to loan funds for the long term. Be sure to check that they are able to cover all your financial requirements and not transfer your loan to another company in the case of unfortunate circumstances.
- “What are your interest rates and extra charges?”
Do your research before coming down to ask about loan interest rates, administrative fees, and/or late penalty fees. It is vital to know more about the regulations for money lending in Singapore. According to the Ministry of Law, a licensed money lender in Singapore can only charge a maximum of 4% interest rate; not more than 10% administration fee; and a late payment fee of not more than $60 for the late month.
With that in mind, you can start asking questions on rates and examine how transparent they are when explaining rates and fees to you. A reliable money lender will not dismiss your queries. A credible one would calculate the rates in front of you and present you with different scenarios including what will be charged if you miss a repayment deadline.
You should also enquire from multiple licensed money lenders to have a gauge of the market rate for the different loan interest percentages and weigh your options wisely. Ideally, you would want to choose a licensed money lender that has credible testimonials of affordable interest rates and validity of following rules and regulations.
- “How flexible are the repayment options?”
Reliable money lenders in Singapore should proactively respond to your questions and concerns, including questions on what has been advertised on their official company website. These licensed money lenders often advertise that they are flexible in the repayment options or loan tenure as opposed to other financial institutions or banks so it is only wise to ask about how flexible it can be and know exactly what they mean by that.
At the end of the day, you need to fully understand your repayment options and legal obligations as it is a binding contract, so ask as many questions as you can about the terms and conditions. Additional questions on extra charges for refinancing the loan should also be addressed. A reliable money lender will happily answer all your queries. Should you ever feel coerced into signing an agreement even when your questions are not properly answered with great detail and clarity, it is best that you walk away and continue looking for other more reliable licensed money lenders.
In summary, if you have ever Googled “Where do I find a money lender near me?” It’s best to dig a little deeper. Don’t immediately commit to the first option you see without asking these questions.