06 October 2014
Calculate your finances before taking up a loan.
What Is A Licensed Money Lender?
Published 06 October 2014
It is getting common for one to get into debt occasionally. Whenever that happens, people always try to look to the banks to resolve their issues. However, banks are very difficult to deal with and a lot of times, your application for a loan may be rejected. Instead of a bank, you should go to a licensed money lender such as SGPersonalLoans.net for a loan to resolve your money problems.
Business loans are popular with businessmen or entrepreneurial people who want to start their own businesses. As most businessmen are considered self-employed, the checks and approvals for such loans are usually more stringent to ensure they can pay back the loans.
Payday loans are typically termed loans that lasted until your next pay check. This is most suitable for people who need to settle some urgent or sudden expenses. This is one of the most popular loans for borrowers. Due to the fact that lenders will be able to get back their money fast, they are happy to provide such loans to borrowers.
Compared to banks, the loans provided by money lenders tend to be in the smaller range. However, if a borrower has good credit history, larger loan amounts may be dispense.
Business loan, foreigner loan, payday loan, personal loan and private property loan are the main types of loans that licensed money lenders normally provide. There are also many lenders that provide car loans and other uncommon loans such as medical or student loans. Consolidation loans are also provided by some lenders.
Private property loans are popular with property investors or house owners in the midst of shifting to a new place or selling their houses. Due to the large amount of cash involved in properties, sometimes one may run into cash flow problems. To overcome this, you can approach a money lender for help in getting a private property loan or bridging loan.
Before approaching a money lender, make sure it is approved by IPTO. There are many cases of people going to illegal entities that have not been approved and are unlicensed and not authorised to provide loans. It is too late when people found out they have been borrowing from unlicensed lenders. Licensed lenders have to work within the laws and they are not allowed to harass debtors. Now you better understand why you should go to a licensed lender for a loan.
Foreigner loans are for foreigners working in Singapore. If you are a foreigner looking for a loan, a licensed money lender may be a good option for you. It can get really hard for a foreigner working in Singapore to receive financial help from banks.
Only licensed money lenders can provide loans to people legally. In order to protect debtors, the government has put up many regulations in place to restrict how much money lenders can charge. So you can rest assure you will not be taken for a ride. However, in the event you have issues with your money lender; you can call up IPTO for help. It will be hard for you to get a loan if the number of money lenders is drastically reduced.
You have to understand money lenders are running a business so naturally their mission is to make more money for themselves. Interest rates are definitely higher than banks as the risks they carried are much higher than banks. Banks normally only lend money to people who either do not need it or have the means to repay. That is also the main reason why a lot of people started going to money lenders and pawn shops nowadays.
For personal loans, they are also a personal favourite of many borrowers. Most people are familiar with personal loans as banks offer them as well. It is a long term loan which can easily go for a year or two in duration. This is more popular with borrowers who wish to pay a lower amount of instalment each month.
Before going to a money lender, you should know what a licensed money lender is all about. It is a lender that can legally provide small loans to Singaporeans, permanent residents as well as foreigners working in Singapore. Each licensed money lender needs to get a license in order to operate. The department that is in charge of licensing money lenders is IPTO which stands for the Insolvency & Public Trustee’s Office.
All money lenders need to renew their license on a yearly basis in order to keep their business running. In the event a money lender is convicted of offences under the Moneylending act, it may get its license revoke. Nowadays, it is very difficult to get a license so many money lenders are very careful with the rules and regulations. Things such as overcharging and harassment of debtors are very uncommon nowadays as the government has succeeded in weeding out the black sheep in the industry.
A licensed money lender is where you should go to if you really need go to take up a loan from a money lender. Otherwise, you may run into more trouble than you bargain for. Loan sharks frequently masquerade as licensed money lenders to provide loans to unsuspecting borrowers. Even if you are careful, sometimes you may fall for their tricks Contact IPTO and call the police if you suspect the company is not a licensed one.