Tips for Choosing a Legal Moneylender in Singapore

The changing business environment has seen lenders change their strategies in order to reach out to the wider audience. Unfortunately, this has given rise to shylocks and pawnbrokers in neighbourhoods. Shylocks are particularly reviled for their antics in reaching out to the poor, as these illegal moneylenders seek to get a slice of the industry’s cake. As a result, many people are getting caught up in false advertising and business malpractice. To avert these problems, industry players have produced a list of licensed money lenders in Singapore. The price notwithstanding, licensed players are proving to be an important source of liquidity. The tips for identifying licensed moneylenders include:

  • SMS & Telemarketing services

SMS offers an effective platform to advertise. However, when it comes to loans, legal moneylenders hardly get to use SMS to market their products. In fact, the IPTO rules & privacy acts prohibit moneylenders from advertising their products/services via SMS or telemarketing. Lenders who end up violating this provision face a harsh penalty from the government. Legal moneylenders do not solicit business through SMS. Therefore, if you end up receiving an SMS advertising a loan, do not reply.

  • Online bank transfers

Many moneylenders purport to give advance cash or bank transfers via an individual’s bank account. However, such dealers are nothing but illegal moneylenders. Such moneylenders are simply trying to avoid the required paperwork to avoid detection. Legal moneylenders facilitate the relevant paperwork and advise accordingly on how to go about filing the application and signing the contracts. This helps to serve as a kind of verification before the applications are processed. Therefore, you are better off avoiding a moneylender who advertises instant bank transfer services.

  • Private information

It is advisable to never divulge personal or sensitive information to a third party via the phone or email. The Sign Pass is a universal citizen login in Singapore, which contains a lot of information about an individual. Therefore, it should not be divulged over the phone because it is a personal access account which illegal moneylenders can take advantage of to facilitate many unscrupulous deals. It can be used to ascertain an individual’s work status and income for purposes of determining their ability to repay the borrowed money. Nonetheless, Sing Pass verification can be performed on-site and not over the phone.

  • Income documents

Licensed moneylenders operate both online and from a physical store. Most of the times, borrowers are required to visit the physical store in order to collect their loan. This is an important requirement that helps to ensure adequate paperwork is performed and proper advice received by the borrower prior to signing any contract. Therefore, from the, always make sure to deal with a lender with a physical address.