FAQs About Borrowing Money From Money Lenders in Singapore

FAQs About Borrowing Money From Money Lenders in Singapore

faqs-about-borrowing-money-from-money-lenders-in-singapore

Need a loan but have many unanswered queries and questions regarding it? Well, don’t worry, here are some commonly asked questions by borrowers. Have a look.

Q#1 – I need a loan, but the bank has turned me down. What are my options?

There are many reasons why banks might reject a loan application, the most common being poor credit score, lower monthly salary, or several current loans. Whatever be the reason for rejection in your case, you don’t have to feel disheartened. There are many money lenders in Singapore whom you can approach.

Q#2 – What’s the difference between a legitimate and illegitimate money lender?

A legal money lender Singapore has to follow the rules and regulations laid down by the relevant authorities. On the other hand, an illegitimate money lender has no such compulsion and doesn’t need to play by the book. Therefore, you get a better service from a legitimated money lender compared to an illegitimate lender.

Q#3 – How can I be sure that a lender is licensed or not?

This is fairly easy. Every licensed moneylender must register himself with the Ministry of Law in Singapore. You can go to the official website of the Ministry of Law in Singapore and download the list containing the name, license number, and business address of all legitimate money lenders in Singapore.  

Q#4 – What kind of fees money lenders are permitted to charge?

Lenders can charge six types of fees.

  • Each time you are late in your repayment of either the principal or the interest
  • Each time the loan terms are changed at a request submitted by you
  • Each time a cheque submitted by you is dishonored
  • Each time a GIRO deduction is unsuccessful
  • Early termination of your contract or early redemption of your loan
  • Legal costs incurred by the lender to recover the loan
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