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Moneylenders - LoanSingapore

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How to borrow money safely without risks? – PowerPoint PPT presentation

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Title: Moneylenders - LoanSingapore


1
Licensed Moneylenders
  • A Short Guide to Safely Borrowing Money

From LoanSingapore.SG
2
Everyone needs to get a loan sometimes
  • Everyone needs to get a loan sometimes. Although
    people can ask some friends or family to get
    money from them, they prefer moneylenders often.
    The main reason is that moneylenders are fast and
    the amount is in your account immediately. Banks
    are another option but their loans have different
    conditions. Choosing to get a loan from a
    moneylender has benefits and risks, too. Although
    in Singapore the government has defined strong
    regulations for this type business, there are
    still some inappropriate practices.

3
Loan Sharks vs Licensed Moneylenders
  • However, one licensed moneylender can save your
    life when you need money most. Loan sharks know
    that and try to trick people who don't have a lot
    of options. That is why it is illegal to get a
    loan from a loan shark. You will find out that
    interest rate that loan shark will offer you will
    be really different from the one licensed
    moneylender will offer you. Have in mind that it
    will be best if you visit at least three licensed
    moneylenders before choosing the most suitable
    one. Although the government in Singapore limits
    the amount of interest rate, there still are some
    differences in various moneylenders.
  • Have in mind that you should fulfill every clause
    in the contract or there will be consequences. No
    one will ever give you money like a gift so don't
    think that you should not pay your installments.

4
A Licensed moneylender has to explain to you
every clause.
  • Licensed moneylenders in Singapore are forced by
    the law to explain in depth every clause of the
    contract. As you may know, in Singapore there are
    4 official languages so the government obligates
    moneylenders to explain their terms in language
    that client knows. This may sound like a silly
    rule but it is not. There are people who can't
    understand fully the English language, and they
    are not capable of understanding the contract
    they sign. So if the moneylender doesn't want or
    don't know how to explain the terms of the
    contract probably he is loan shark instead of the
    licensed moneylender.

5
Licensed moneylenders will want to know how big
your income is.
  • They will give you a loan based on your income.
    Unsecured loans are given to people who have
    regular salary payments. The size of the loan
    depends on the size of the annual income because
    moneylenders want to be sure that the client will
    be capable of paying back the loan. A lot of
    people think that moneylenders are just throwing
    away money with enormous interest rates but this
    is simply not true. No one has the interest to
    give someone money which can't get back later
    he will go bankrupt eventually. However, the
    maximum loan you can get if your income is less
    than 20, 000, will be 3,000. This is not much
    but it is enough to meet ends of the month if you
    have some unexpected expenses.

6
Every loan has to have a contract
  • It is not possible a licensed moneylender to give
    you a loan without a contract. The official
    contract should include information about the
    amount of the loan, the interest rate, and
    payments. If the contract is not including all
    these things you should be really careful and
    check whether your moneylender is not a shark
    loan.

7
What will be the interest rate?
  • As we mentioned, the government has defined
    strong regulations for loans and their taxes and
    interest rates. From 2015 moneylenders can't give
    offer you a contract with an interest rate higher
    than 4 per month because it is illegal. So if
    you find out that your interest rate is higher
    (and your contract is signed after 2015) probably
    you have a business relationship with a shark
    loan.

8
What about the fees?
  • Moneylenders in Singapore can't define fees that
    summed with the interest rate, late interest
    rate, and other fees can't be bigger than the
    principal of the loan. As you may see, the
    government has defined this rule in order to
    defend people who don't read their contracts
    carefully.

9
What means to be a licensed moneylender?
  • Licensed moneylenders have licenses that prove
    their ability to develop this kind of business.
    You may be surprised but moneylending is a
    business. Everyone who registers a legal business
    name and company with this kind of occupation can
    receive a license. The difference is that there
    is a monthly fee to use such a license. In
    addition, there is a fee for submitting your
    documents at first place. Singapore Ministry of
    Law saves all names and companies that are
    registered and have received a license. In order
    to have some selection people who have applied
    for a license should fill some basic tests. Tests
    include math and language experience.
  • https//www.loansingapore.sg/
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