A licensed money lender is a person registered with the Registrar of lenders to offer people small loans. These loans are normally charged at high interests and do not go through normality’s like in the banks and other institutions. Loans from these money lenders are usually easy and quick to access when compared to those offered by banks and banking institutions. Singapore has a law that requires all money lenders to be licensed. Money issues are very sensitive and one has to be careful in identifying a licensed money lender.
Here are some tell tale signs that can help you identify if you are dealing with a licensed money lender.
- A licensed money lender will never withhold any amount of your principal loan. This is unethical practice. If you notice such a happening then keep off.
- Licensed money lenders will never grant loans without exercising diligence. Factors like the amount of loan, the interest rate, repayment schedule, mode of repayment monthly income and existing and foreseeable financial obligations should be considered. If this doesn’t happen, then you are in the wrong hands.
- Licensed money lenders will always give you a copy of the contract and explain to you all the terms and conditions stipulated in the contract. The contract should always be signed by the two parties, the lender and the borrower.
- Competent lenders will to ask you to sign blank contracts notes. One may be deceived and the lender may write his terms and conditions that will only favor them.
- Licensed lenders have good customer care skills. They are not abusive nor use threatening behavior. This is unethical practice. If they behave that way it means they are not professional.
- Finally licensed money lenders will never retain your personal identification documents with them. A lender should only check your Id to verify your identity and if you are of Singapore nationality.