Sometimes taking a financial loan becomes necessary, for instance, to fund the purchase of a property, escape bankruptcy, or get out of a financial mess, or meet a large unforeseen expense.
And at times, because of various reasons, you might not qualify for a loan from a bank when you need it most. What to do then?
One viable option is to approach a licensed moneylender. However, before you take this route, you must understand these 5 things.
Don’t run to a money lender near you when you need financial assistance. You must first explore other avenues. Check with your family or friends if someone can lend you a helping hand.
Next, port of call should be your bank. Call them up or visit the nearest branch to inform them of your need and to learn if you qualify for a loan. Don’t take an initial rejection as the final no. Pursue the matter further. Ask the representative what’s the reason for rejection. If there’s something you can do to get the loan, make a conscientious effort to do that.
Only when you have exhausted all avenues, approach a money lender.
Ask for clarification on all specific terms mentioned in your loan contract before you sign on it. You should not solely rely on what’s written in an advertisement.
The law requires money lenders to explain each and everything written in the loan agreement to the borrower. If you find various clauses or caveats too technical, take a legal advisor with you to your meeting with the money lender. However, don’t sign the loan agreement unless you are hundred percent clear about every word is written on it. Pay extra attention to caveats, because any misunderstanding about them can have huge consequences later on.
You might have to ask someone to stand-in as a surety. The surety, just like you, must clearly understand the terms mentioned in the loan agreement contract. He or she should also receive a copy of the loan agreement. The surety must not give any original personal ID document, such as the passport or license to the moneylender. Additionally, the surety must not give any information that has passwords to user accounts (like an email account, online banking account, etc.) to the moneylender. Reliable moneylenders will not ask for such information in the first place. However, in the unlikely event of a moneylender requesting such information, you should deny the request in no uncertain terms. If the moneylender persists in his demand, shop for a new, more professional moneylender.
You must always approach a licensed money lender Singapore, as a licensed professional is less likely to indulge in an unfair practice. In case such a thing happens, contact the Singapore Registry via phone or email and explain the issue to them. Your personal details will remain not be shared with the money lender without your consent.