If you’re in need of a loan, it’s important to work with a licensed moneylender. This ensures that the lender is following local and national laws regarding interest rates, fees, and other terms. It also helps to avoid scams and other unsavory practices. This article will give you a few tips for finding a reputable licensed moneylender.
A good licensed moneylender will be open and honest about their fees and interest rates. They will also be willing to answer any questions you have about the loan. If they seem evasive or are unwilling to explain their terms, it’s best to move on to another licensed moneylender.
Licensed moneylenders are required to disclose all of their fees and charges upfront before a loan is approved. This makes it easy for borrowers to compare options and find the best deal. Additionally, it’s important to remember that loan repayments must be made on time. Late payments can result in additional fees and charges.
One of the most important factors to consider when choosing a licensed moneylender is their reputation. A reputable licensed moneylender will have an excellent track record and plenty of satisfied customers. You can usually find this information online or from personal recommendations. In addition, a reputable licensed moneylender will have a physical office that you can visit.
The maximum interest rate that a licensed moneylender can charge is 4% per month, regardless of the borrower’s income. This limit helps to protect borrowers from excessive fees and interest, which can make it difficult for them to pay back their loans on time. In contrast, unlicensed moneylenders often charge much higher interest rates, which can quickly add up and become impossible to repay.
Before choosing a licensed moneylender, you should always check their license and make sure they’re registered with a regulatory agency. Registries are government agencies that oversee money lenders and enforce regulations in terms of loan applications, lending requirements, and interest rates. Licensed moneylenders must comply with these regulations in order to remain licensed. If a licensed moneylender doesn’t have a license, you should report them to the Registry immediately.
Licensed moneylenders must also follow a code of conduct that prohibits them from harassing or bullying borrowers. They cannot send hate mail, spray paint your door or neighbours’ doors, or confiscate ID. They also must be respectful and courteous at all times. If you notice a licensed moneylender behaving badly, report them to the Registry immediately.
If you’re looking for a licensed moneylender in Singapore, look no further than Loan Advisor. Our one-stop loan comparison directory makes it easy to compare the best rates from top providers in the country. Request a quote today to get started..