Identify Licensed Money Lenders
Personal loans are an integral and important part of the Singaporean credit system as they are approved faster and offer rather reasonable interest rates. The Singapore government has a wide number of licensed moneylenders registered under the Insolvency and Public Trustee’s Office (IPTO) that offer great diversity in personal loan packaging.
How can we find a licensed registered money lender in Singapore?
No Telemarketing or Short Messaging Service (SMS)
Moneylenders can not advertise their services through telemarketing or SMS marketing, according to the IPTO rules and privacy acts. The penalties for violating are harsh. Moneylenders can easily lose their licenses if they get caught.
However, there are still many illegal money lending services using telemarketing and SMS to market their services to consumers. You had better avoid these money lending services.
No online bank transfers
Moneylenders often claim that they can provide instant cash for approved loans. The truth is that a licensed registered money lender will never use online money transfers to make payments for money. Only illegal moneylenders would use such methods as there would be no paperwork and therefore no way of tracing where the money came from.
Licensed moneylenders will require you to come into the office to sign the contract before they give you the money. This applies even for those who allow you to apply for online loans.
Registered on the Registry of Moneylenders
To check on the Registry of Moneylenders is the easiest way to know whether a moneylender is licensed or not. All licensed moneylenders are registered on this registry. They are required to comply with certain laws and regulations in order to maintain their registered status. Only moneylenders serious about running a legitimate business will try to maintain their license by complying with all the regulations.
Never ask you to disclose personal details over the phone
A licensed registered money lender takes the clients personal information seriously. Such lenders will never require their clients to disclose their personal information over the phone. It is important for you never to give information such as your Sing Pass details over the phone to a third party.
Sing Pass verification ought to be done on site and in person. Licensed moneylenders will require you to come with your personal details for verification when your application has been approved.
Research the moneylender
Finally, do not forget to carry out your own research on the lender you are interested in. It’s important! Apart from checking to ensure that it is registered with the Registry of Moneylenders, it is also important to look for further information about the lender online. There are various websites that offer independent reviews on moneylenders. Through these websites, you can see what others are saying about the lender you are interested in. This will help you avoid any illegal moneylenders.