How Do I Know a Money Lender Is Licensed or Not

How Do I Know a Money Lender Is Licensed or Not

how-do-i-know-a-money-lender-is-licensed-or-not

Obtaining a cash loan from a money lender in Singapore is not difficult, but the main question is how can you ascertain that the company from whom you are borrowing is licensed?

Sometimes, you acutely need funds to deal with an emergency. But it can so happen that you might not qualify for a personal loan from the bank. In such a situation, approaching a money lender is a viable, and maybe the only, option. Being a first-time borrower, it is very much possible that you might not possess a great deal of knowledge about private lenders.

It is necessary for you to ensure that the company with which you are dealing is a licensed one and needless to say, you should always take cash loans from legal money lenders Singapore.

Signs that you are dealing with an Ah Long

Look for these signs. If they are present, you are not dealing with a licensed company but rather with a loan shark.

  • You are contacted through WhatsApp adds, SMS, ads in magazines, flyers or emails (In Singapore, money lenders can advertise via three channels only: (1) consumer or business directories, (2) official website of the money lender, (3) advertisements placed inside or on the exterior of business premises of the money lender
  • Speaks to you rudely or abusively or threatens you in any way
  • Ask you to submit your SingPass ID and/or password
  • Refuses to hand over personal identification documents, like NRIC card, even after completion of the verification process
  • Puts pressure on you to sign a Note for Contract that’s blank or incomplete
  • Doesn’t explain you the terms of loan while providing it, nor hands over a copy of the Note of Contract
  • Gives loan approval on phone, email, or SMS, even when you have not filled a loan application or provided supporting documents

In case any lender does any of these things, you should immediately put an end to your dealings with him. And the next time you need a cash loan, first check if the lender is licensed or not.

Verify whether a money lender is licensed or not in 3 easy steps

As per the law, licensed lenders must register themselves with the Ministry of Law in Singapore. It maintains a list of all money lenders that at present are licensed. To check if a money lender is licensed or not, you must check this list. If the money lender is licensed, his or her name will appear in the list along with his or her business address and license number.

Here’s how to find if a money lender is licensed or not:

  1. Go to the official site of the Ministry of Law in Singapore
  2. Click the link List of Licensed Moneylenders in Singapore and download the PDF. Go through the list to check if the name of your lender appears in it or not
  3. In the PDF, you’ll also find lenders whose license is currently suspended. Ensure that you are not dealing with such a lender
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