Finding the right licensed money lender in Singapore can seem like a hassle, especially when you are unsure if what’s advertised is credible or whether or not you are looking at a legitimate website online. And while the licensed money lending sector here is heavily regulated, there are still criminals trying to lock unsuspecting victims into unfair loans and never-ending debt traps.
Thankfully, there are ways to distinguish upstanding lenders from shady ones. Here are five qualities of reliable money lenders in Singapore to look out for when you need a personal loan.
1. Transparency on rates and fees
Licensed money lenders are required to abide by strict rules and regulations, especially in regards to their charges and fees. The following table summarises the interest rates, service fees, and other charges a money lender is allowed to charge under the law.
| Loan interest rate | Up to 4% per month, on outstanding loan amount |
| Admin or processing fee | Up to 10% of the principal loan amount |
| Late payment fee | Up to S$60 each month payment is late |
| Late interest charge | Up to 4% per month on overdue loan amount |
| Overall fees and charges | Up to 100% of loan principal |
These regulations are put in place to prevent lenders from overcharging borrowers and limit the amount of debt borrowers may take on.
Reliable money lenders in Singapore are open and transparent about their fees and charges, and will not impose additional fees or go beyond the legal limits. They will also take an effort to make all their fees and charges known to the borrower before the loan is disbursed.
2. Clear explanation of loan terms
Besides making known the interest charges and service fees, licensed money lenders are also required to clearly explain the terms of the loan to borrowers.
Professional money lenders in Singapore will strive to ensure that borrowers fully understand the loan they are signing up for. This not only includes interest rates, fees, and charges, but also the payment schedule, the loan tenure, and what happens if repayments are late.
You can expect a reliable money lender to go through your loan terms with you in a face-to-face session before asking you to sign the loan contract and disbursing your loan.
If a lender is unwilling or unable to explain your loan terms clearly, you should be wary of taking a loan from them.
3. Patience and willingness to answer questions
A professional money lender should not be aggressive in pushing you to sign up for a loan. They should instead be patient and willing to engage with you, answering any queries you may have.
Taking a personal loan is, after all, not a decision to be taken lightly, and a reliable money lender understands this. They would be willing to listen to your concerns, understand your limitations or challenges, and offer advice on the most suitable loan package for your circumstances.
The bottom line is, professional money lenders don’t just want to give you a loan so they can charge you interest on it. Rather their goal is to help you meet your financial needs through the responsible use of personal loans.
4. Highly rated by customers
Licensed moneylenders that provide good customer service and professionalism will elicit the appreciation of their customers. Happy customers tend to want to share their good experiences, usually by leaving a five-star rating on Google or social media.
Hence, one quick way to narrow down your search for reliable money lenders in Singapore is to check Google ratings and social media reviews of various moneylenders. Try to enter keywords such as ‘licensed money lenders near me’.
Those that are consistently highly rated usually have a high service standard, and there’s a greater chance of a good experience if you choose them as your lender.
5. Licensed with the Registry of Moneylenders
All money lenders in Singapore are required to be registered with the Registry of Moneylenders.
But more than just being licensed and not flouting the rules, money lenders are also expected to uphold professionalism in accordance with clearly spelled-out service standards and industry-wide practices.
Failure to do so can see a money lender losing their licence and being blacklisted by the Registry.
Hence, if a money lender is in good standing, there’s a good chance they will prove to be a reliable money lender – especially if they also display the other traits and features mentioned earlier in this article.
You can check if a money lender is properly licensed by referring to this list of licensed moneylenders in Singapore.
Synergy Credit is a highly-rated, fully licensed moneylender in good standing. Our customers love our fast, reliable, and convenient service, with loan approvals in under 20 minutes! Speak to our friendly team to find the best loan package for you today.
