Licensed Money Lender

Licensed Money Lender

Licensed Money Lenders 101

Money lenders are your friends during financial crises for they are people who can provide monetary aid for a certain amount of money. However, there are some unlicensed ones who pretend to be legal money lenders and take advantage of some people’s difficulties. We at Money Lender Central provide the opportunity for people who want to loan money minus the hassle and stress of getting scammed and we have shortlisted a few trusted lenders offering loan ranges from Personal Loan, Payday Loan, Foreigner Loan, Bridging Loan to Business Loan.

What to Look For in a Legal Money Lender

Like any other service-providing professionals, money lenders have certain attributes to be able to impress a client. This has been the case in Singapore since the Registry of Money Lenders has been established to provide security for loaners and avoid abuse of their financial crises. One of the things a good licensed money lender should have is professional etiquette. Since they are professionals and cater to clients like you, legal lenders are expected to behave in such a way that would not ruin their reputation. With that said, money lenders who use abusive language or are acting in a threatening way towards you should always be avoided.

Warning Signs of a Non-Licensed Money Lender

Licensed money lenders are restricted to ask for information such as your SingPass password or your user id as that would mean they would have access to all of your personal information. He or she should not be allowed to retain original copies of your important documents such as your NRIC card, passport, driver’s license, work permit, employment pass and/or ATM card. Make sure to be extra careful when a money lender asks you to sign an incomplete or blank document especially if it is a contract. Should he or she ask you to do so, it is best to decline and request for a complete document which you can read and sign. He or she should also explain the terms and conditions to you personally to avoid any misunderstandings and/or misconceptions regarding your agreement. Also, it would be wiser to ask for a copy of the Note of Contract after signing it so that you will have proof of the transaction—much like what you would do with a receipt. Doing so would grant you peace of mind. Legal money lenders are also not allowed to ask for or withhold any part of your total loan amount for any reason because they already get their professional fees from the interest your loan capital incurs over time. To be sure, you can also check out our moneylender reviews on a certain money lender or require feedback from his previous clients to prove that his reputation is unmarred in any way.

Filing a Complaint

The government of Singapore provides ample protection for people who acquire loans. You can file a complaint against a money lender should you find his or her practice and/or contract unlawful via the following channels:

  • Call: 1800-2255-529
  • Email: OneMinLaw@mlaw.gov.sg

Money lenders who engage in exorbitant or substantially unfair loan practices are subjected to trial by the Small Claims Tribunal and can be pursued through the Consumer Protection (Fair Trading) Act.