Singapore being an independent country with the lifestyle being higher than other Southeast Asian countries often causes the citizens of the country to face financial problems, which lead to borrowing from a third party. Although borrowing from a third party also could be a challenging. Firstly, citizens of Singapore may not know whom to approach for their loans. Secondly, expats living in Singapore may not know whom to approach to borrow money and lastly, the rules and regulations frequently change. Hence it is important for the people to know who to borrow money from Singapore and the other benefits of borrowing it from a licensed moneylender.
Anyone with knowledge about moneylending can offer help. But it is important that the customer knows to differentiate and not get carried away with unethical means of getting loans. Understanding this matter, the government of Singapore has taken various steps and set strict regulations to help the people understand and choose ethical means of borrowing money. Illegal moneylenders have different behavioral aspects and do not abide by the regulations set by the government. Some aspects are as follows:
Advertising: Moneylenders in Singapore are not allowed to market their products and services openly. If moneylenders advertise over the phone, emails, print media or television it is important to avoid them. In case they are caught advertising through these means, there is a chance for the moneylender to lose the license and also pay a hefty fine.
Interest Rates: Under the regulation of Public Trustee’s office, licensed moneylenders charge interest rates according to the set regulation. The government of Singapore sets interest rate limit on loans. Hence, if any moneylender charges a high rate of interest that falls out limits set by the government can be easily identified as an illegal one.
Violent & Harassing behavior: Moneylenders are not supposed to use any kind of violent behavior to extract money from the borrowers. In case of any such behavior the government has complete right to cancel the licenses as well as charge a fine. This also makes it easy to differentiate between a licensed and illegal moneylender.
Set Office Location: Licensed moneylender will not take personal details of any customer over the phone, for example, details of SingPass. Moneylenders in Singapore have set office location, where they would call the customer to their office and discuss further.
It is easy for one to get a loan by a licensed Moneylender in Singapore if they have a stable background. It is indeed the job of the licensed moneylender to provide accurate information and help the people with their good character, abiding by all the regulations stated in The Moneylenders Act. Good credentials along with a license from the government can help the moneylender have credibility in the market and be on the top of Moneylender Registry published by the government of Singapore. Licensed moneylenders need to understand and protect themselves from the other fraudulent practices going on, by understanding the accurate way of going about in this business.