The best licensed moneylender is the one that will give you the most competitive rates, flexible terms and good customer service. The best licensed moneylender also offers a wide variety of personal loans to suit the needs and budgets of all types of borrowers.
Licensed money lenders are tightly regulated by the Ministry of Law, so it is difficult for them to charge more than the maximum interest rate that they are legally allowed to. Banks, on the other hand, are not regulated at all and often charge much higher interest rates.
Borrowers with poor credit history can take out personal loans from a licensed moneylender to rejuvenate their credit score and to start rebuilding it again. This is because a bad credit history can prevent them from being able to get housing loans, auto loans and new credit cards.
Before you sign up for a loan from a licensed moneylender, make sure that you provide accurate information about yourself and your income. This includes your full name, date of birth, personal identification number, residential address and telephone number. In addition, borrowers should be able to prove their income through reliable documentary evidence.
Once you have signed up with a licensed moneylender, they will provide you with a loan contract that contains all the necessary information. You must be provided with a detailed explanation of the loan terms and conditions, including the permitted fees, interest rates, dates of loan disbursement, computation of late interest, instalment payments and the total amount to pay over the course of the loan.
The ROM (Registry of Moneylenders) is the body that supervises and regulates all registered money lenders in Singapore. It is also responsible for monitoring and enforcing the Money Lending Act, which protects borrowers from unscrupulous lenders.
A moneylender should never ask you to pay an advance fee before disbursing your loan. Licensed money lenders will only request such fees if you are in default or if they have to apply additional charges to collect your outstanding balance.
Besides these, a licensed money lender should not charge you any other fees for its services such as processing and disbursement fees or any other hidden costs. This is to ensure that you are getting a fair and equitable deal. moneylender singapore