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.

  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 moneylender 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. 

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 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 info@365credit.com.sg.

Know About Singapore’s Moneylenders Act

When you find yourself in a troubling financial situation, you might want to seek additional financial assistance. This help can be obtained by borrowing from a licensed moneylender. Whether it is for emergency situations to cover medical bills, funeral expenses, or if you are looking for house renovation loan Singapore to finance your house, applying for loans come with its terms of agreements.

Thus, it is crucial for you to know about the moneylender’s act if you do not want to find yourself in a more perplexing situation. If you end up participating in an unlawful business exchange with an unlicensed moneylender, this could potentially worsen your problems rather than helping to elevate your current financial crisis.

By being well-equipped with the knowledge on the money lending activities, you can ease your way out of any potential harmful problems. Here’s what you need to know:

What is a Moneylenders Act?

Moneylenders legislator

Firstly, it is of paramount importance for you to know what exactly is a Moneylenders Act? This act was created to regulate and control the business of moneylending, as well as to provide the borrower’s protection from any kind of problems while in the pursuit of moneylending. Under this act, it has provided guidelines for moneylenders to operate ethically.

The most crucial and important factor to take into consideration is that a moneylender service must be licensed. According to Singapore’s Moneylenders Act, no entity can carry out the money lending business in Singapore, whether as principal or as an agent, unless if they are:

    • authorized to do so by a license
    • an excluded moneylender
    • an exempted moneylender

Although a moneylender service should only be operating under license, there are also prohibitions that these licensed moneylenders must oblige to.

Some of the unacceptable practices that a moneylender should not do are as follows:

Moneylender agent discussing to his client

      • Enquire on your SingPass ID or password.
      • Keeping your personal ID documents such as your NRIC card or passport.
      • The usage of verbal aggression or giving threats.
      • Allowing you a loan despite not explaining the terms clearly or providing you with a copy of the loan contract.
      • Practices usury by granting a loan without due diligence (with no proper essential supporting documents).
      • Retain the supposed amount of loan for the borrower without a solid justification.
      • Making you sign a contract for a loan that is blank or incomplete.

If you encounter any of these practices, you should directly report to the Registry of Moneylenders at the Ministry of Law.

While it is noteworthy to be aware of the unfair money lending practices, you should also be well informed of a good moneylender service. So the question here is, what exactly constitutes a good moneylender?

Before you opt for the service of a moneylender, you might want to ask yourself these questions:

Moneylender Agent

    • Has the government granted them a legit moneylender license?
    • What is the duration of the moneylender service in the industry?
    • Do they have positive or negative reviews from previous clients?

A credible moneylender should have the following characteristics:

Moneylender agent shake hand with client

    • Have a valid moneylender license
    • Offer fair terms and conditions
    • Have a good and credible level of experience
    • Provides fast and immediate response and/or approvals
    • Transparent on the loan fees
    • Responsive to queries

If, by chance, the moneylender service that you are involved in are harassing or threatening you for debt collection, this can be considered as unethical. Thus, what you can do if such instances happen is by lodging a report to the Registry of Moneylenders at 1800-2255-529. An online complaint can also be made through a feedback form available on the official website of the Ministry of Law Singapore.

To lodge a complaint, you have to provide information about the moneylender such as the name of the business, their license details as well as the contact number. If the matter of issue worsens, you might want to lodge a police report.

So, what now?

Once you’ve successfully identified a good moneylender and managed to secure a loan, what do you do? It is a given that you have to always return what you borrow. Unfortunately, unexpected circumstances may happen and you might be unable to do repayments on time. To overcome a situation like this, you can first try to negotiate with the moneylender to get an extension for the dateline or to issue a refinancing plan. However, it is best for you to do so prior to getting a the best personal loan Singapore in the first hand.

Keep in mind that a borrower can be legally sued by moneylenders should they consistently fail to pay back the loan. Furthermore, if the amount of the debt sum up to a minimum of $15 000, the borrower is liable to be filed for bankruptcy that will inevitably increase the debt amount.

On another note, if the accumulation of debts does not go over $100 000, you can opt for the Debt Repayment Scheme (DRS), an alternative provided by the Ministry of Law’s Insolvency Office that can help you to resolve your outstanding debts. This can help prevent legal action to be taken to the borrower of unsecured loans unless the court has granted permission to do so.

Conclusion

Moneylending service comes with its own perks as well as its downsides. It’s important for you to be well aware of what you are signing up for. If you are planning to take out any kinds of loans, it would be best to have a consultation first with your closed ones; family and friends if it is really the best thing for you to do. Once you are certain, you can head out to take a loan according to your needs. Be sure to make informed decisions so that you will not regret later.

If you want to find out more on the type of loans that you can apply for, head over to 365 Credit a licensed money lender for further consultations on financial assistance.

How Much Can I Borrow From A licensed Money Lender Singapore?

Licensed moneylenders are part of the financial institutions that have the authority to grant loans to people, which are repaid over a stipulated period of time. On short notice, moneylenders can come in handy, and they offer several types of loans, including personal loans and payday loans.

You have to be sure that the moneylender you want to sign up with is licensed and following the rules and regulations that are in place to protect both them and we the customers.

Unlicensed moneylenders in Singapore are basically loan sharks who have no qualms about cheating you out of house and home, and may even commit identity theft, ruining you in the process.

WHY SHOULD I BORROW FROM MONEYLENDERS?

Moneylenders have a more flexible loan approval process, allowing you to access your loan in the fastest time possible, at least faster than if you were getting a loan from the bank.

Most moneylenders keep the background checks to a minimum, requesting just a few documents on your part. With strict personal loan interest rates charges set by regulatory bodies, borrowing from moneylenders can make repayment easier for you than borrowing from other lending institutions.

HOW MUCH CAN I BORROW?

Calculating how much he can borrow

There are two types of loans that you can opt for when borrowing from a moneylender:

Secured loans are loans that you get after giving the moneylender some collateral, which ensures that you repay the loan.
Unsecured loans are loans that you get on the basis of your credit score or credit history, without any form of collateral.

When borrowing from moneylenders, you can get any amount you want if you are taking a secured loan.
If you are taking an unsecured loan, you are eligible for the following amounts:

If your annual income is less than S$20,000, you can borrow up to S$3000.
If your annual income is more than S$20,000 but less than S$30,000, you can borrow up to 2 months’ income
If your annual income is more than S$30,000 but less than S$120,000, you can borrow up to 4 months’ income.
If your annual income is S$120,000, you can borrow any amount you want.

WHAT ARE THE INTEREST RATES?

Interested Rate

As of October 2015, moneylenders charge an interest rate at the maximum of 4%, regardless of amount borrowed. This 4% interest is also charged for nothing secured and unsecured loans.
If you miss a repayment in any month, the interest on that late payment is still 4%, and it is charged to the delayed payments.

WHAT ARE THE FEES?

Moneylenders are permitted to place the following fees, and only these fees, on the loans they grant:

When you have been granted a loan or even offer a personal loan Singapore bad credit, you are charged a fee of no more than 10% of the principal of that loan
For each month’s repayment that you miss, you are charged a fee of not more than S$60
For any successful claim filed by the moneylender for the recovery of a loan, you are to pay the legal costs that have been ordered by the court