All you need to know about licensed moneylenders in Singapore

Licensed moneylenders in Singapore have become a very popular financing option. As it gets more challenging to remain debt-free in these difficult times, licensed moneylenders come to the rescue with quick cash. If you are looking for a fast-approval loan, a licensed moneylender is the way to go. Unlike traditional banks that take days to process the loan, licensed moneylenders are fast and easy to deal with. So, if you are considering taking out a loan, here is all you need to know about licensed moneylenders in Singapore!

 

1. Who is a licensed moneylender?

A licensed moneylender in Singapore is licensed,  registered and operates under guidelines, rules, and regulations issued by the Moneylenders Act of Singapore. While it’s as straightforward as that, there has been a rise in unlicensed moneylenders scamming customers by pretending to be licensed. So, how do you know that a moneylender is licensed? The Registry of Moneylenders is obligated to list licensed money lenders in Singapore on their website. On this website, you will find a list of all the licensed moneylenders in Singapore. The list is also updated regularly to include new moneylenders and remove those who have been suspended. The list will provide you with the business name, address, contact number, a dedicated website if any, and of course the license number. If a business claiming to be licensed is not on this list, it’s safer to abort the mission and deal with another on the list.

 

2. All licensed moneylenders in Singapore are regulated by the ministry of law.

 The registry of moneylenders dictates professional standards that every moneylender must meet to be licensed. It also protects the customers from hostile moneylenders by providing practices that moneylenders must refrain from or otherwise risk suspension. Some of these practices include;

 

  •  Use of offensive language and threats towards customers.
  •  Retaining personal documents of the customers such as driver’s license, SingPass ID, passport, etc.
  • Granting loans without providing the customers with a note of contract and conducting due diligence.
  •  Asking customers to sign a blank or incomplete Note of contract to receive the loan.
  • Withholding any part of the principal amount for whatever reason.

 

3. You Can lodge a Complaint Against a Licensed Moneylender

 

If you are harassed, threatened, or experience any of the unethical practices we have mentioned above, you can complain against the licensed moneylender with the registry of moneylenders. You can contact the registry of moneylenders through 1800-2255-529 or lodge the complaint via the ministry of law’s website. What do you need in order to bring a complaint against a licensed moneylender in Singapore?

  • Business name
  • Contact information
  • License details

 

These details will facilitate the investigation to be carried out by the registry. You may also be required to attend an interview to provide more details for the investigating officers. Your information remains private throughout the investigation and will never be disclosed to the moneylender without your permission.

 

4. A Licensed Moneylender in Singapore can Sue you for Persistently Refusing to Settle your Debt

 

If you do not repay your loan even after several warnings, a licensed moneylender can sue you. It’s therefore important to ensure you can meet the contractual terms provided by the credit governor. In the event, you are unable to repay the loan in good time, you can negotiate for an extension or for refinancing. You may incur additional costs but it’s better than being sued. In severe cases, you can also file for bankruptcy. The measure is only to be used in very bad situations as it affects your credit score negatively.

 

5. Licensed Moneylenders in Singapore do not Conduct Loan Transactions Online.

All licensed credit facilitators in Singapore are required to transact at the registered place of business. That is why you will find the business website and location on the list of licensed moneylenders. The face-to-face interaction is designed for the verification of documents and to allow a professional to assess the customer’s need to tailor the best loan and repayment plan for the customer. The signing of the contract must also be done physically and original documents returned to the customer. It’s only after a face-to-face interaction that a loan transaction can be completed online.

6. If you Make More Than $20000 a Year, you Can Borrow Six Times your Monthly Salary from a Licensed Moneylender.

Licensed moneylenders offer both secured and unsecured loans to customers. For a secured loan, you need to pledge any asset that the moneylender can liquidate to recover their money. The loan should be more than the loan taken out. For an unsecured loan, you only pledge to pay back the amount borrowed plus interest by a certain date.

 

These are a few facts you need to know about licensed moneylenders in Singapore before taking out a loan.

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