A Simplified Guide on Singapore’s Moneylenders Act

The Singapore government has always recognized the need to protect both borrowers and moneylenders. The rights and protection of these groups and individuals were summarized in a legal document called the Moneylenders Act.

This document details how the moneylending business should work and function. It also describes the parameters as to how moneylenders must collect, use, and disclose the information and data of the borrowers.

It is important that moneylenders and borrowers in Singapore are familiar with this document so that they can be certain that they do not fall from scams and other deals where they could lose money.

How to Know If a Moneylender Is Licensed?

There is no doubt the moneylending industry has grown over the years. There are hundreds of legal and illegal moneylenders in Singapore today. Hence, it is crucial that borrowers be very critical in choosing which company to trust. As a result, borrowers are often searching terms such as “license money lenders in Singapore” or “licensed money lenders Singapore” online.

One easy way to identify legitimate or licensed money lenders in Singapore is to check the list of valid moneylenders registered in the Republic of Singapore published by the country’s Ministry of Law. This list was last updated in July 2020. The Ministry of Law releases a regularly updated list to guide the borrowers. You can check out the most recent list uploaded by the MinLaw.

The Registry of moneylenders will provide a borrower with an idea on which company to trust. It is an easy and convenient way guide that can be used and accessed by borrowers.

How Much Can You Borrow?

The amount you can borrow from a licensed money lender Singapore depends on several factors. For secured loans, you can obtain any loan amount. There is no limit to the amount as long as the moneylenders provide the needed loan.

Meanwhile, for unsecured loans, borrowers may fall under different categories. For one, if you are a permanent resident or a Singapore citizen and have an annual income of less than $20,000, you can only borrow an amount of up to $3,000 from all the moneylenders combined. But for those earning more than $20,000 annually, you can borrow money up to six times your monthly income from all the moneylenders combined.

The case is different for foreigners in Singapore. Those earning less than $10,000 each year can only borrow $1,500. While those earning $10,000-$20,000 annually can borrow up to $30,000. And those with annual income higher than $20,000 can borrow six times their monthly income.

What Are the Interest Rates & Other Charges Moneylenders Can Charge?

According to the Moneylenders Act, the maximum rate that moneylenders can charge is 4% per month. This cap is applicable to all borrowers regardless of their income or if they have a secured or unsecured loan.

Borrowers are charged with other fees. First is a maximum fee of $60 for each month of repayment. Another is the loan fee should not be more than 10% of the principal of the loan. And of course, the borrowers must pay for legal costs set by the court in case of a successful claim by the moneylender for the recovery of the loan.

For a detailed computation of interest rates and other charges, you can check this helpful guide from the Ministry of Law.  The details listed here are based on the Moneylenders Act. Borrowers must learn to appreciate the Moneylenders Act because it serves as the most important document when it comes to moneylending.

How to Know If the Advertisement Is Legitimate

The business of moneylending has been thriving. As a result, a lot of illegal moneylenders or loan sharks are trying to run their own scams on people. One growing concern here is that even loan sharks are able to run their advertisements. This means that borrowers must be extra vigilant in choosing which money lender to trust.

Do remember that licensed moneylenders are only permitted to advertise through three channels. First is through print or online business directories. Second is through websites owned by the licensed moneylender. Third, the physical place or office of the licensed moneylender such as their building or company premise.

If you received an SMS, email, or a flyer offering you a loan, there is a big chance that the moneylender contacting you is an illegal business. Do not hesitate to contact the authorities to report these loan sharks. Take note that you can easily check the Registry of moneylenders if you are in doubt with the company you are dealing with.

Businessman focusing

What Moneylenders Should Provide to Borrowers After Being Granted a Loan

Once a borrower is granted a loan by a legitimate moneylending company, he/she has to ask for a copy of the signed contract. This contract is a legal document. It is legally binding, which means that borrowers must be able to know and understand the agreement they entered.

Also, a borrower must also ask for receipts every time he/she makes any repayment towards the loan. Ensure that the details of the receipt are correct, including the name, amount, and date. These receipts serve as proof that the loan is being paid. This will protect the borrower in the future in case of conflicting claims.

Borrowers must also ask for a statement of account for all their loan or loans at least once every January and July. This gives the borrowers an idea of how much of the loan amount they still own. The receipts also serve as documentation on all the transactions made between the licensed moneylenders and the client.

Borrowers can also apply for a credit bureau report so they can have their own copy of payment history from various moneylenders. This will give them an idea of how to proceed with their financial affairs in the future.

How to Report a Moneylender or Its Unfair Practices

When you encounter any problem with a moneylending business or entity, do not hesitate to contact the Registry at telephone number: 1800-2255-529. The Ministry of Law will conduct an investigation and will surely look into the matter you have reported.

Moreover, if you think that the licensed moneylenders you chose are doing illegal activities, you can report them to the authorities so that they would be taken out of the Registry of moneylenders. It is important for the registrar of moneylenders to warn borrowers in the future. An excluded moneylender will no longer be able to exploit people.

It is also your due diligence to check on the legitimacy of the moneylender you are dealing with. If you feel that the moneylending business you are dealing with is an unlicensed moneylender, you must report it to the Ministry immediately. Remember that these companies are dangerous, especially to people in need.

What If You Can’t Pay the Loan?

If you believe that you can no longer pay the loan you borrowed from a moneylender, you can always negotiate your loan terms with them. Licensed moneylenders can find legal ways for you to help you pay for your loans. Such deals might come with additional fees.

Do remember that a moneylender has the legal right to seize the borrower’s property, in cases where the loan has been secured by an asset. Borrowers can lose their properties and important possessions.

What Can You Do Is the Moneylenders Are Harassing or Threatening You?

Despite the failure to pay, a moneylender should never harass or threaten a borrower. The Moneylenders Act specifically ensures the protection of borrowers from any type of abuse and harassment from moneylender businesses. If you have personally encountered a situation like this, submit the business name of the contact to the Ministry of Law so they can do the necessary action to protect borrowers like you.

The Moneylenders Act, as well as other Singapore laws, ensures that no borrower feels abused. As a borrower, you have to trust the government to protect you if you encounter any problem. If you feel that you need assistance from the government, you can easily contact their offices through phone or email.

Conclusion

Obtaining a loan creates a legal obligation. In Singapore, the Moneylenders Act covers the rights and obligations of lenders and borrowers. Given this, it is important that you think before applying for a loan. You must choose the most trustworthy moneylender because you will be entering an important contract with them. Most importantly, you must only deal with a licensed moneylender. Check out the best qualities of a good private money lender Singapore to ensure you choose the right money lender.

One company that can promise you a smooth loan experience is the 365 Credit Pte Ltd. It is a licensed money lender which has been voted Top 10 Best Moneylender in 2020. 365 Credit Pte Ltd. practices ethical and legal money lending. You can surely trust in their loan processes.

If you wish to know more about 365 Credit Pte Ltd and the loan offerings they have, you can check their loan offerings and other services here. You can also check their different types of the loan if you are still undecided in what loan should you get.

6 Best Qualities Of A Good Private Money Lender in Singapore

If you find yourself in a troubling situation where you need to take out a sum of cash for emergency purposes, you might want to consider getting financial assistance from a licensed money lender. 

Singapore citizens should note that the decision to choose lenders in Singapore should not just come from a simple Google search. Continue reading to find out all about licensed money lenders in Singapore.

Moneylender talking with clients

Who are licensed money lenders in Singapore? What do they do?

Essentially, licensed money lenders are individuals or non-banking entities which offer money loan services to those in need. They generally provide a short term loan and flexible repayment term. They also offer a variety of loans such as personal loan, payday loan, foreigner loan, bridging loan and business loan.

Traditionally, loans are often offered by financial institutions or creditors like major banks or credit unions. However, licensed money lenders are entities lending money with their own wealth to those seeking to use the financial help for their own personal agenda. 

Unlike the traditional method of borrowing money, going for licensed money lenders would not require a middleman as the process will only include the borrower and the lender directly.

The loans offered by licensed lenders often have loan terms which would be a sizable return for the lender. This could be in terms of a relatively higher interest rate compared to traditional financing, a cut from the profit of the loan, or from the collateral pledged by the borrower. 

Next, how do licensed money lenders operate?

Similar to traditional financing, the three main aspects of licensed money loans include a borrower, a lender, and also a contract. The contract is there as a form of protection for both parties where the loan amount, personal loan interest rates, and other additional details of the loan are all entailed in the contract. 

Should there be a breach of contract, the party responsible is liable for punishment by the law. Moreover, if you are planning to take out a loan from licensed money lenders based on collateral, the institution will have your property examined first to determine your asset’s value. 

Licensed money lenders are also more interested in the purpose of your loan proposal rather than who it’s for. This is also why there are different types of loans offered by licensed money lenders such as personal loan, payday loan, business loan, in house renovation loan Singapore, and etc. So be sure to analyze the use of the loan that you’re opting for and apply accordingly.

What are the qualities of a good licensed money lender?

Now, you might be wondering what are the qualities of a good licensed money lender? Let’s dive into the 6 best qualities that a licensed money lender should have in the list below:

smiling woman talking with customer for assisting to resolve the problem with pose thumbs up

1. Responsive to your queries and concerns

Loan terminologies can be overwhelming and complicated for the common people. Hence, if you do not understand any of the terms, do not hesitate to ask questions! A good sign that a lender is credible is their ability to explain all the terms and conditions thoroughly and comprehensively. 

Their representative should be able to give a clear walk-through of the loan you’re applying for by explaining all the pros and cons that come with the loan. It is also of paramount importance for a loan provider to be highly responsive to your queries and concerns. Their prompt assistance is a good indicator that they are highly responsible, and most importantly, reliable.

Thus, should there be any problems relating to the process of the loan, or if you need to inform them regarding late payments, they are always ready to help by providing various alternatives.

Open days neon signs style text

2. Open 7 days a week

There will be times when you stumble on a financial bump in the road and need to take out extra cash at the most unexpected time. Hence, a lender that operates 7 days a week is definitely a life-savior. Being open everyday is a good indicator that the lender is reliable and trustworthy. This is because they are always available when you need them most especially in emergency situations.

You don’t have to wait for weekends to pay a visit to money lenders, just simply go to any licensed moneylender’s website and submit your loan application! These money lenders are always ready to cater to your loan applications.

Credit rating paper, calculator, pen, and glasses on a blue table.

 

3. They take a look at your credit health

The prime feature of most licensed money lenders in Singapore is their claim to conduct minimal credit reports. If you possess a legitimate and steady income, you will typically be qualified to take out loans. However, this doesn’t mean your credit score will not be accessed by the money lenders. 

Although your credit score or loan history wouldn’t have bad repercussions in your loan application process, the money lenders are still liable to carry out a history credit check. At the very least, the money lenders should take a look at your credit background for safety purposes. 

It is imperative for them to do a little bit of background checking to ensure you are able to do the repayments. Hence, it goes without saying that a money lender that cannot be bothered to even check the reliability of the people they loan to is definitely a red flag.

4. The lender should not try to persuade you to borrow more

A good lender will try to work out a loan contract that is reasonable for you. To that end, they will not try to convince you to take out a higher loan amount than intended in case you are unable to do the repayment. 

There are instances where some money lenders will offer you a high loan amount – more than the amount you initially intended. In most cases, these lenders are only trying to milk more money out of you in the form of interest payments and higher fees and charges due to the increased loan amount. 

Most licensed money lenders would put emphasis on how much you need, rather than how much money you want. To note, lending money is definitely a cautious and prudent business. 

Thus, these money lenders would need to have certainty that you are able to provide them with repayments and no other hidden agenda. Hence, if there are money lenders that keep pursuing you to take out a loan amount that is beyond your capabilities, you might want to stay away from them.

5. Transparency on loan fees

Loan companies must be up-front regarding the charges they impose for you to be able to assess the entire loan expenses. This is to help you compare and contrast with other loan plans that would best suit your needs and capabilities. The usual charges that you can expect are administrative fee, interest, late interest and late fee.

A licensed lender can only charge up to 4% interest rate per month and an administrative fee of up to 10% only. These fees are fixed and will not move regardless of the amount taken. Hence, it is best for you to avoid taking out a loan from a money lender that is not fully transparent on the fee charges to obtain the loan or during the settlement procedure. 

On another note, be wary of loan sharks masquerading as loan providers that will charge unexpected surprise fees during the loan application procedure. These loan sharks tend to include “surprise charges” only later after you have selected a loan. Thus, read thoroughly all the terms and conditions of a loan contract prior to taking out a loan. 

However, we’d advise you to always go for money lenders that are transparent about the fees incurred for the loan from the get-go.

loan application form

 

6. Provide reasonably fast approvals

A good licensed lender also tends to have a quick process of approving loans. As soon as your credit history check and other requirements have been met, the approval for your loan should be made so that you can get the money in a speedy manner.

It goes without saying that the prime reason for most people to take out a loan is simply because they need money, and they need it fast! There are plenty of reasons why one needs to get immediate cash – be it for urgent medical bills, in house renovation loans, or even wedding expenses. 

For whatever reason that may be, one thing is clear and that is, the faster you get the money, the better.

So, the best thing to do is to opt for money lenders which can offer you fast approvals. There are many licensed money lenders in Singapore that can access loan applications in just one hour, but be sure to check out the reviews first to know that you are in safe hands.

What is the difference between licensed and unlicensed lenders?

According to Singapore’s Moneylenders Act, no entity can offer money lending services in Singapore unless they are:

  • authorized by a license
  • an excluded moneylender
  • an exempted moneylender

So before you weigh your choices on which money lender you should go for to get loans, make sure you opt for a licensed moneylender. It is crucial for you to only deal with licensed money lenders especially if you want to get financing because it is very unlikely for a licensed moneylender to perform fraudulent services. Here are some of crucial differences between a licensed and unlicensed lender: 

Lawyer checking legal document

 

1. The lender is registered with the Registry of Moneylenders

So, the number one criteria that a money lender should have is to possess a license. If you want to check out a list of licensed moneylenders in Singapore, the Ministry of Law has gathered a comprehensive list here: List of Valid Moneylenders in The Republic of Singapore. Ensure that the money lender service you’re dealing with is listed in ROM’s list of licensed moneylenders to refrain yourself from engaging in fraudulent schemes.

If the lender is not on the list, do not engage with them. 

 

2. How they attract their customers

Another major difference is that most unlicensed money lenders operate using shady schemes which include sending unsolicited messages to potential victims. 

These messages are often sent via WhatsApp, supposedly from the Monetary Authority of Singapore or the Ministry of Law, requiring the borrowers to pay a deposit amount and a 7% GST from the loan amount. 

Licensed money lenders are forbidden from the Ministry of Law to engage in cold calls or sending unsolicited messages to the public. As such, they would not reach out to you randomly for loan application persuasions.

Male Hand Holding Id Card With Photo Vector Illustration

 

3. Identity verification

Licensed lenders will require the loan applicants to pay a visit to their business space to verify the individual’s identity. Always be extra cautious when dealing with money lending activities. 

In summary, always be extra vigilant and careful when engaging with a lender. Know who is licensed and who isn’t before you take any further steps.

Final

If you need financial assistance, 365 Credit Solutions is a reliable licensed money lender, ready to cater to your needs. Head on over to our website to find out more!

How To Find The Best Clementi Money Lender In Your Area

Finding a good money lender in Singapore that will not try to lead you into a debt trap is hard, but it is not impossible. In this article, we will guide you on how you can find the best money lender that is best for you.

It doesn’t matter if you are looking for a moneylender in Clementi or anywhere else, this guide is applicable for you as long as you are located in Singapore.

Before we dive in, let’s briefly discuss the characteristics of a good moneylender first.

 

What constitutes a good money lender?

Before we go on our guide on how to find a good money lender, you must be aware of their characteristics first. A trustworthy money lender has got the required licenses and qualifications to provide service and deliver loan products within their area.

A reputable loan provider should offer fair terms and conditions on the loan in addition to providing an alternate settlement system for their customers who have trouble paying.

Getting a loan from a reliable money lender is essential for people in search of loan money, especially if their loan purpose is due to an emergency, for business investment, or other acceptable reasons.

 

Money Lending

 

Another important factor that money lenders should have is their level of experience. The length in years that a lending provider is operating can give you some insights on whether you will get quality service or not.

Keep in mind that when analyzing the experience of a loan company, you must also keep an eye on the way in which they are giving services to their clients. This can be effectively gauge by looking at online reviews by past clients, which will be discussed later in this article.

Now that you know a few basics in what to expect from a good money lender, let’s move on to our guide on finding one.

To assist you in your quest to locate a reliable and trustworthy money lender doing business in Singapore, be sure to read our tips and suggestions below:

 

Man is checking a document

 

  1. Verify the licenses and permits of the money lender

Before you start filling up an application, be sure that you are dealing with a licensed moneylender first. Check if the moneylender has the necessary permits to operate.

If the moneylender you want to get a loan from has a website, confirm the validity of what they claim to be on the internet.

Also, you must check if they are listed in the government database of licensed money lenders. This topic will be discussed in depth later in this article.

  1. Check with your family members and close friends

If you have family members and friends living in the same area as you do, chances are high that some of them have experienced getting a loan from a local lending company.

With this, you will be able to call for suggestions about the money lenders that they have good experiences from, and the type of loan that they already took.

Your family and friends will provide you with genuinely reliable suggestions, in addition to warnings regarding money lenders that are not good to take a loan from.

If you do not have family members or friends who can help you, you can also try reaching your co-workers and business partners. With such a broad network of people to ask from, you will surely get a good suggestion in no time.

 

reliable money lender

 

  1. Carry out research on the internet

After consulting with your family and friends, the next step you must do is to check out the web. You will find a variety of information and facts on money lenders in Singapore on the internet that will allow you to make a decision.

By looking on the internet, you will be capable of getting more info on loan selections, repayments, company details and other stuff that may be beneficial in figuring out if the loan company you want to take out a loan from carries a good standing or not.

A good source of information about the lenders is by looking at their reviews, ratings, and discussions about the loan company and their loan products on community forums. By reading the moneylender reviews and forum discussions, you can have a general idea of how the lender operates.

Additionally, you will learn about the experience of those who have already taken a loan from them, which will provide you with valuable information. If you see a lot of complaints or rants in the forums, or a lot of low ratings, find out why people are giving such reactions.

Generally, you will want to avoid companies with low reviews online. By diligently going through online reviews and internet forums, you will become aware of how good or how bad a loan company is without having to deal with them yourself, saving you a lot of time (and money).

  1. Take a look at government databases for certified money lenders in Singapore

Moneylenders act has given way for a government-maintained listing that contains the record of every certified money lending establishments in Singapore that has received their license from the Ministry of Law.

As such, money lenders that are not indexed by that directory are not licensed and are not considered to be legit. If you cannot find the moneylender you are eyeing in the government database, do not take out a loan from them as they are not probably licensed.

By getting your loan from a reliable and trustworthy money lender in Singapore, you will guarantee that you deal with proper procedures without any stress when it comes to repayment conditions and other related agreements.

Final Thought 

A guide on finding the best moneylender would not be complete without our own suggestion. One of our recommendations is 365 Credit, a licensed money lender in Singapore. Get in touch with 365 Credit Solutions today! Just submit your inquiry and we will contact you on how to apply for a quick and hassle-free loan.

Ready to Apply?

Fill up this form and we will get back to you within 3 working hours. It’s easy.

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A Guide On Choosing The Best Insurance Companies In Singapore

There are many insurance companies out there that are all vying for you to avail of their products that it can be confusing to find out which one is perfect for you. If you can relate, we got you covered. Listed below are some tips that will be helpful if you are looking for the best insurance companies in Singapore.

Without further ado, let’s start:

  1. Check out the insurance company’s history

When deciding for which insurance company to get your insurance coverage from, it is important to look past their advertising material and delve deep into the company’s history. Of course, every insurance company will have something good and appealing to show on their marketing strategies. The information that you need to see cannot be found in their tailored adverts, but rather on the track record of the insurance company. Look up how many years the insurance company has been in business, the amount of clients that they have, and the insurance types that they offer.

Another important thing is the claim to settlement ratio of the company. You can generally find this information on insurance regulatory boards. Respectable companies will also offer this information, along with their insurer ratings on their own website. The claim to settlement ratio is important since it will allow you to have a quick look on whether the company actually pays out to their insurance holders or not.

  1. The price of the insurance and your budget

Although you should not cheap out on your insurance policies, signing up for one that is out of your budget is one of the worst things that you can do. If you get an expensive insurance policy that you cannot afford to pay, you will have to compromise on your other expenses or skip out on paying the insurance. Either way, you will lose out.

Getting an affordable insurance will be better for you in the long run, since you will be able to comfortably pay for its monthly premium without having to worry about running short of cash. Ensure that the insurance provider you end up picking provides an insurance with a pricing model that suits your personal budget. This will keep you from overshooting with your expenses.

  1. The size of the company

Young Asian Entrepreneurs Meeting In Office

The reliability of an insurance company will ultimately depend upon its size. Look into the important figures like the assets of the insurance company, their market share value, as well as their growth ratio. By doing this, you will be able to assess if the insurance company has the ability to fulfill the claims as stated by your insurance policy in case you need to make a claim. A big company is also more reliable, and you will be rest assured that they will still be around by the time your insurance plan matures.

  1. The insurance provider’s quality of service

The quality of service that the insurance company provides is another important aspect of deciding on an insurance provider. One way of finding out the quality of service they provide is by calling the insurance provider themselves. See how they treat prospective customers who call their line. Is the insurance company open to responding to your questions, whether on a phone call or personally at their office? You might be wondering about the importance of this, so let us shed light on the fact. It is inevitable that you have to make a phone call to your insurance company, especially if you have to make a claim. If they are hard to reach, you will have a hard time sorting out your insurance, especially on events where you have to act fast such as accidents, hospitalization, etc.

Do they provide you with a customized insurance offer based on your needs, or are they just giving you a generic sales pitch without even knowing your financial situation? These are a few of the common factors about quality of service that you should be aware of before making any decisions regarding your insurance.

  1. Reviews and complaints about the company

Young Business People At Meeting In Office

People normally overlook this part of researching for the company, since they feel like the reviews and complaints are not really accurate. However, even though some of the complaints and reviews in an insurance company might be isolated scenarios or planted by their competitors, you must still read them. You can easily distinguish planted reviews since they tend to be repetitive and gives unreasonable low reviews. Pay attention only to the in-depth reviews and ignore reviews that don’t make sense.

Additionally, an insurance company with a lot of clients will surely have a lot of reviews that will dwarf the fake reviews. If a company has no or little reviews, it means that they don’t have a lot of clients. This will certainly provide you with a good idea with regards to which insurance company should you consider and what you should avoid.

  1. Get recommendations from your friends or family members

Deciding on an insurance company at this time might not be easy due to the sheer amount of insurance providers out there. In case you are still having difficulty in choosing an insurance provider on your own, you can get help from a reliable member of the family or a good friend who is proven to make good decisions regarding insurances themselves. You can also make use of your network to find good insurance agents in your area who might be available for a consultation.

If you are looking for a licensed money lender in Singapore to fund your insurance premiums, look no further than 356 Credit. Providing the best personal loan interest ratesUrgent loan Singapore fast application and approval process, and lastly, they are open even on Sundays. You can give them a call at 6222 5500 for more information about personal loans, or email them at [email protected].