How to Find a Reputable Moneylender

A moneylender is a person who lends small amounts of money at higher interest rates than financial institutions. They may be a private individual, a firm, or an organization. These individuals usually operate within the legal framework and are registered with the Registry of Moneylenders. However, some unlicensed or illegal lenders also exist. Hence, you must always do your homework to find out who is the best and most reliable licensed moneylender for you.

Unlike traditional bank lenders, private money lenders focus more on the value of the asset you’re offering as collateral. They don’t spend as much time reviewing a borrower’s personal work history or credit history. As a result, they are able to offer a loan in less time.

Insider Insights: The World of Money Lending in Singapore

To avoid getting scammed by unscrupulous moneylenders, you should always choose a licensed lender that abides by the Ministry of Law’s rules and regulations. This is the easiest way to ensure that your moneylender is legitimate and will treat you fairly. In addition, it’s important to check the Registry of Moneylenders website from time to time. This will allow you to see if any licensed moneylenders have been blacklisted by the government.

Moreover, you should only apply for a loan with a licensed moneylender that evaluates your NRIC and identity. It’s also important to understand the terms of your loan agreement before signing it. For example, you should be aware of how much the loan is going to cost you and when it’s due for repayment. Make sure you keep a folder that contains all your loan-related documents and receipts.