Choosing the best licensed moneylender can help you to get a good deal and avoid a lot of unnecessary expenses. In addition, a reputable lender can also help you to resolve your dwindling credit score.
A reputable lender will always provide you with a complete loan contract and explain every part of it. They should also tell you the interest rate, permitted fees, the amount you will pay in monthly instalments, the late interest fee and the total amount to be paid over the entire loan term.
In Singapore, all licensed money lenders must operate within the strict regulations of the Registry of Moneylenders (ROM), which is a branch of the Ministry of Law that oversees the registration and regulation of the money lending industry. If you find that a moneylender does not meet these requirements, you should contact the ROM immediately.
The first step in selecting a reputable lender is to check their reputation and experience. A reputed lender will have a clean track record and a high percentage of satisfied customers. Moreover, they should also have all the necessary legal licenses and be able to comply with the law.
Another way to find the right money lender for you is to read online reviews and feedback. Most consumers will write a review if they had a bad experience, so it’s important to read these reviews carefully.
Moreover, you should also take a look at the star rating of the lender. However, you should not rely too much on these ratings because they may not give you an accurate picture of how a particular lender treats its clients.
A reputable moneylender will also be able to provide you with a flexible repayment schedule. This will ensure that you’ll have more time to pay back your loan without putting yourself in too much financial trouble.
If you’re not sure whether a money lender is reputable, you can check out the website of the CAS (Credit Association of Singapore), which was formerly known as MLAS (Money Lenders Association of Singapore). The CAS exists to protect both the interests of borrowers and licensed moneylenders in Singapore.
Some of the most common signs that a moneylender is not reputable are that they charge a high interest rate or ask for an advance fee before disbursing your loan. They might also ask you to sign an incomplete contract or grant your loan without checking your credit history.
They might use abusive language or threaten you. This is a red flag because it shows that they might be taking advantage of your situation.
The ROM has set the maximum rate of interest that moneylenders can charge at 4% a month. If a lender violates this law, their license will be revoked. moneylender sg