How to tell the difference between a licensed and an unlicensed lender of money

 

Illegal money lenders can easily post online scams. All they need to start doing business is a website and a fictitious location.

  • Remote Loan Disbursement and Application

A licensed money lender will conduct a face-to-face verification before sending you your loan. For unlicensed money lenders, however, your application might be accepted over the phone, by SMS, or via email without a written agreement. There could not even be a face-to-face meeting; instead, they might just give you your loan right away.

So make sure to check and avoid falling for these kinds of con artists. Make sure the lender you choose has a legitimate company address and an application process. You can get the best personal loan in ang mo kio that have proper verification and loan disbursement processes.

  • Rates Of Fees and Interest

Before executing your loan, an unlicensed moneylender or loan shark may demand upfront payments, processing fees, or admin costs. They can even state that before they can provide you with your cash loan, you’ll need to pay a fee.

A legitimate money lender will never request that you send them money before they release the loan. There could not even be a face-to-face meeting; instead, they might just give you your loan right away.

So make sure to check and avoid falling for these kinds of con artists. Make sure the lender you choose has a legitimate company address and an application process.

  • Rates Of Fees and Interest

Before executing your loan, an unlicensed moneylender or loan shark may demand upfront payments, processing fees, or admin costs. They can even state that before they can provide you with your cash loan, you’ll need to pay a fee.

A legitimate money lender will never request that you send them money before they release the loan. You may also look up a list of authorized money lenders and their addresses on the website of the Ministry of Law.

What else should you pay attention to make sure you’re dealing with a licensed money lender?

Look out for the following things, even if a money lender has a license because they might be against the law:

  • harsh language or threatening behaviour of any kind.
  • Request your SingPass password or user ID.
  • Keep your NRIC or any other form of personal identification handy.
  • requesting your signature on an unfilled or insufficient loan agreement.
  • extending credit to you without providing a copy of the loan agreement.
  • lacking a statement of the rules and regulations
  • Withhold any portion of your loan’s principal for any reason.

Be protective, research well, and get a safe loan from an authorized lender.

 

Plagiarism report:

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