Planning to get a personal loan from a moneylender? Here is a bit of expert advice, stay away from loan sharks. What does that mean?
Commonly there are two types of moneylender in a developed country like Singapore and many other nations. The one which deals with illegally providing loans is called a loan shark or, in other words, an illegal moneylender.
There is a reason why the name of illegal mortgager is kept loan shark. Many people who have experience with a loan shark believe that they act as your friend. Once you fail to make repayments on time, they will make you squeal for not paying on time.
In the second category, all the lenders who follow the rules and regulation composed by the ruling government of a nation are referred to as legal moneylender. In business terms, they can also be termed as licensed lenders. The name itself says that these money providers are legalised for giving money.
Yes, it is a good idea to demand loans from a licensed one. If you miss the repayment date, they can give you some extra days. But how do you know that it’s a legal lender?
Well, certain criteria determine the legality of a moneylender. You do not have to search out, especially on any other platform, for these aspects. We have created a list of all the important criteria that can help you to find out a genuine moneylender easily.
- Interest rate
Earlier before the laws were composed, a loan provider used to charge loan interest of their own choice. After all, the more rate of the loan, the more profit for a moneylender. The impose rate was more than 10 per cent on their client to stretch the income from loans.
The increasing frustration in the general public leads to protest against such mortgagers. Soon after this, the Singaporean government established laws that restrict the moneylender to increase the interest rates. Nowadays, a legal moneylender who wants a license will always follow these rules and set the rate of interest accordingly.
Although, few notorious ones do not even bother about such laws and eventually charge the debt rate without anyone’s concern. If you approach a money financer who is laying down high rates and not even negotiating with the borrower then he or she is probably a loan shark.
By this behaviour, you can easily rectify which one is legal and which one is not.
- Documentation
For those who don’t know what does documentation means while requesting, then never pull yourself towards financial risk. In professional language, documentation is the term used when papers work for a legal activity is carried out.
But in the sector of giving loan facility, documentation is done to determine the factors related to those who are taking money. Above all, no one who cares about their cash will give you their hard-earned money for fun sake. Documentation helps the moneylender to authenticate whether the person is eligible and capable of paying loans.
A private legal moneylender will always look at your files which tells about you and your surroundings. But here is the twist, if it’s a loan shark, then they will not have a look at your documents.
The main goal of every loan shark is to give a financial weak person loan does not matter if you are eligible for it or not. You know what happens after you take money from an illegal moneylender.
So, you can keep in mind this aspect and easily rectify the right type of lender.
- List of legal moneylender
If you are asking for loans in a country like Singapore, then consider yourself to be lucky enough. There is an official website that one can get on any web browsers. This site is motivated by government officials. You must be thinking about how this webpage can help those who are looking for a personal loan?
Interestingly, it for free and can be downloaded from anywhere in the world.
This particular web portal contains all the details related to a licensed moneylender. If you still think that such a web portal is useless for a cash borrower, then check your fact again.
More or less, some clever minded have also come up with a list of such lenders. And yes, they run many websites to manipulate the original data published by the ministry of law. So, how to check for list of legal moneylenders in Singapore?
Follow the below lines to know how you check for the original list of moneylenders.
How to get the list of licensed money lender?
The simplest yet effective way to check for the right list is by visiting the official website of Singapore’s ministry of law. This site is available for all the internet users out there.
Although, one should not forget that many web developers develop an exact similar website and copy the ideas of someone else to fool people. There is no exception in this case.
According to a report, more than thousands of websites are copied. And the sad part is that an average mobile phone user who does not have much knowledge about how the internet works can’t differentiate between the original webpage and the forged one.
So how can you differentiate? This may sound tricky and complicated, but once you know the crux of applying this idea on any website where you want to determine the authentication. Go for the URL.
URL is not the same for more than one website, which means that there is a unique URL for every website. The original URL for getting the list of licensed moneylenders is “rom.mlaw.gov.sg”.
The list is published in PDF format on the webpage. This means that you can download it easily and have a look without being connected to the internet.
But if you are going to download the list, don’t forget to update the file as the officials always do the required modification and changes in the data of that table. Select one of the moneylenders who can contact them for cash loan personal.
