Singapore has various moneylenders and each claims to provide low interests. This often makes it truly hard for the potential borrower. More so in choosing the right lender who can help with the financial issues.
For this reason, many Singaporeans rely on the legal moneylender review sites. They do this in order to know the experiences and views of their previous borrowers.
The moneylender reviews will be useful for first-time borrowers. This can also benefit even individuals who want to have the best borrowing experience.
Nonetheless, ensure that this is a secure way to get the right moneylender.
Benefits of Moneylender Reviews
A big number of Singaporeans may think that the review sites have a benefit. That is it gives them the benefit of having foresight. From these sites, it is considered that you could get the idea of the moneylender dealings. That is the ways money lenders deal with their customers. Often this will be based on the other borrower’s experiences and opinion.
This will usually provide a borrower the certainty. This is normally towards a specific legal money lender who offers quality services. This is in addition to the loan products they offer.
Depending on all the ratings and testimonials. You will better be able to tell how the past borrowers were content. This will be from feedback on their service and loan. Even from the feedback, some clients will just share the bad experiences they have had. This is to help other people to know what they should expect. This is when they decide to deal with the very licensed money lender.
By using the moneylender review sites available. It makes getting the right money lender an easy thing for any borrower in Singapore. None the less do you have to believe all the things you get to read on the sites.
What This Means For Borrowers In Singapore
In order to prevent your falling victim for the loan shark schemes. Make sure that you get loans only from the reputable accredited money lenders in Singapore. The registered and legal money lenders in Singapore will also not charge any unfair interests.
It is important that borrowers realize that money lending is a trade based on trust. This means that people will normally become loyal customers. But only when they are contented with the lender services offered.
By having more satisfied customers. It then means that the reputable money lender can stay in business for many years. Licensed moneylenders offer loans in Singapore under strict laws. This is aimed at protecting the borrowers as well as the lenders.
Reputable moneylenders who have been in the industry for a long, often tend to have a long list of customers. At the same time, they offer fair interests and flexible terms on their loans. The moneylender reviews may give you ideas on how different moneylenders treat their customers. Even then the real results can be seen as proof of their services.
Limitations of the Moneylender Reviews
The respondents of the annual survey have shown that average star appraisal is significant factors. This is for the online lender review site. Overall, most consumers confessed to their trusting the online reviews.
Even so, be careful in trusting each testimony by past borrowers. The review site may not offer you the bigger picture. Many borrowers will give a review if they have a bad experience. Some borrowers who have positive borrowing experiences. They may not get so concerned with giving any reviews at all.
It is important that you realize that people have different opinions and stands. It happens that the things that may be an annoying factor. It may be just tolerable for you. At the same time something they will rate to be 2 stars. It can actually be 4-star for another borrower.
Therefore as you look for the right money lender. Then you have to make time to look around and even research for more factual details.
What Does This Mean For You?
Have a look at the most recent 2018 list of the Accredited moneylenders in the Moneylender Registry. Moneylenders in Singapore are strictly regulated. This means that their license could get revoked. That is when they go against the 2008 Act of the Moneylenders of Singapore.
In accordance with the Act, licensed money lenders will only charge interests of 4% each month. The enacted cap is only applicable for both the unsecured and secured loans. For instance that when a borrower fails to settle their loan on a set due date. The highest interest a licensed money lender may charge. The amount cannot be above 4% of outstanding balance. That is for every month that has lapsed.
From this, it means that interests have to be worked out. This is based on the outstanding principal amount. That is after the total repayments made have been deducted. When you borrow a loan amount of about S$ 12,000. From this, you have paid off S$6,000.
Therefore, the interests for late payments can only be worked out against the S$6,000 remaining. Based on this, late interests can only be considered on the primary principal amount. This is unless a borrower does not repay any amount on their loan.
Therefore, what happens when you have some existing balance. Even then the repayment is not due yet to being paid off. Given for instance when the loan amount is S$ 12,000. when the borrower defaults on their first installment of S$3,000.
From this, the moneylender may only charge late interests on the defaulted S$2,000 payment. The leftover balance that is not yet due is not affected. Thus it is not considered in this instance.
Most borrowers may now have a list of all accredited moneylenders in Singapore. Ensure that you verify the lender you choose to work with. Be sure to only deal with a legal money lender. The right money lender needs to be genuine and reliable. In so doing, you will be certain that you get a record of that licensed moneylenders. The lender that you settle for should be both legal and reliable.