When seeking a loan, it is important that you ascertain whether the moneylender is on the list of registered moneylenders in Singapore.
Otherwise, you run the risk of getting a loan from an organization that is unregistered.
These unregulated moneylenders may use your personal information to carry out unlawful activities or they may be involved in unlawful lending practices. In order to avoid this, make sure to check the list of registered moneylenders first before entering into a loan agreement with a moneylender.
Registered moneylenders offer a wide range of loans including payday loans, personal loans, business loans, and foreigner loans. Whatever your loan needs are, there is likely to be a registered moneylender who can fulfil your borrowing requirements. Usually registered moneylenders in Singapore offer both secure and unsecure loans.
For secure loans, there is no limit to the amount that you can borrow. However, for unsecured loans, the amount ranges from $3,000 up depending on your annual income. If your annual income is $20,000 or less, the maximum amount that you can borrow from a registered moneylender is $3,000. If you earn $120,000 or more, you qualify to borrow any amount.
Taking a loan from a registered moneylender may be less cumbersome than obtaining a loan from a bank. However, the interest rate that is charged is usually higher than the interest rates charged by the banks. These things should be kept in mind when approaching a registered moneylender.
When entering into a loan agreement ensure that you are clear about the interest rate that is being charged and other fees that may apply for late or short payments. If you are a responsible and disciplined borrower, you will not incur late fees and additional interest costs and you will be at an advantage the next time you seek a loan from a registered moneylender.