Why Loan From Licensed Money Lender Is The Better Choice
Because you need extra funds for emergency expenses. The best solution for your financial issue is loaning. Be sure to deal with legally licensed moneylenders. There are some horror stories of people who didn’t research. This is as they were searching for moneylenders in Singapore. And they eventually suffered the consequences of that action. That’s why when you are ready to borrow money. You need to consider choosing the lender to work with.
Here are some benefits of working with legal lenders. You could expect these advantages. That’s the application process to getting your money. This is once your loan is approved.
Illegal Means of Accessing Personal Information
It’s true that personal information is essential. Prior to getting your loan approved. You, however, need not divulge your details. Details of your SingPass shouldn’t be shared on call or through text. It’s important that you visit your lender’s office. And give them this information in person. That is how confirmation checks are done. Thus they are never to be done remotely. After you have undergone the loan review. The lending company will determine eligibility for the loan.
Hence, when there is no real office for you to visit. Since details about that lending were transmitted by SMS. Then you need to start worrying. Do not even consider working with this lender. There’s no point in taking a payday loan with them. Because to start with. The lending company is not certified. Thus legally they cannot operate their business. You always have to look for legal moneylenders. They should hold valid and up to date license.
Additionally, they should have a registered landline. Also, they need to have a physical office. This is where you may go for verification. Or to have personal detail checks done.
No Harassment Involved
Licensed money lenders offer efficient services. The application process is stress-free. This will give you peace of mind. This will be during the entire procedure. This is when you submit the loan request form.
Also during the time, you will be waiting. The lenders will then review your documents. Also in the final stage when you get the feedback. The signing of the payday loan agreement will go smoothly. This lender has no issues with harassing borrowers. This is because they follow the IPTO’s rules. This is as far as how they run their business operations.
In Singapore, licensed businesses have to follow rules. There are guidelines established by the government. So, when they don’t obey the standards. They will run the risk of getting penalized. The Singaporean authorities ensure that the lenders comply.
Failure to that they will face legal consequences. For example, their license can be revoked. And they might also be subjected to huge monetary fines. Should they not practice their operations in a lawful manner.
Loan Plan Apply
After you borrow cash from a licensed lender. You are certain of a particular amount you qualify for. And this will be based on your salary. Since these legal lenders follow set standards. All the regulations are stipulated in the IPTO. Then you will get an idea of how much money you can get. This will also indicate the interest rates to be charged on the loan.
One instance is when you earn over $30,000 a year. The funds you can loan will be at most 4 times the monthly income. There also will be 4 % monthly interest rates. This will be added to the loaned cash amount. This way you can work out the exact amount you need. Thus you will know the total amount to pay for the payday loan. The lower the income, the less the cash amount you may borrow.
No SMS Adverts
Recognize that only the illegal moneylender use this tactic. They will send out SMS messages. This is meant to entice Singaporeans to loan from them. But they do not have a physical office. Thus there’s no way you will visit their office. As they work without a definite physical office space.
Certified moneylenders don’t do such acts. The IPTO standards put in place govern them. They show how the businesses need to advertise. They also state how they can communicate with their customers. And they are required to have a physical office. This way client can visit to conduct business. So when you get such SMS adverts from the lending company. You may always report that number to Singapore’s IPTO. Since this is a breach of the Act of Money Lenders’.
Efficient Ways Of Borrowing A Loan
Licensed lending businesses are efficient. This does not put you through a long waiting period. As you wait for an approval of the loan amount. In a few days, you will be able to get your cash. Soon after the loan request is approved.
Since what you have to do is submit the necessary paperwork. This removes the tiresome process with bank applications. You don’t have to worry about your credit history. These lenders are lenient. So they can accept a less-than-perfect rating. This one main difference between licensed moneylender and banks
Interest Rates Are Reasonable
A licensed lending business is registered. Thus it’s recognized by the Moneylender’s Registrar. For this reason, they are required to follow the rules. These regulations are put in place to regulate interest rates. These rules also stipulate the schedule of repayments. A limit has been set as to the amount they can lend. This amount depends on your salary. In dealing with licensed lenders in Singapore. You are sure that charges are according to these legal standards.
These are some things you need to consider. Beware of these factors before applying for a loan. Above all be cautious. Ensure that you deal only with a licensed company. Take the time to search for the lender details. Also, consider all the aspects that put them apart. Be able to differentiate a licensed company from the illegal one.
In so doing, you can have a smooth process. The transaction will be worry-free. That is during the request and repayment processes.