Borrow money from licensed money lender in Singapore A licensed money lender Singapore means an agency registered with the Ministry of Law, which provides secured or unsecured loan to Singaporeans, permanent residents(PR) or foreigners based on their annual income.

Citizens of Singapore have faced the outrageous extortionist tactics of unregistered money lenders for decades, because of the exhaustive list of restrictions that the Singaporean banks place on customers seeking unsecured loans. For example, if you are a native or PR applying for an unsecured bank loan, your annual income has to be more than a designated amount. If you are a foreigner working in Singapore, the required annual income will be even higher.

Anyone falling short of these income levels is caught in a dire predicament, when small or large amount of money is required urgently. In these times, it is advisable to borrow money from a licensed money lender Singapore.

The licensed money lenders classify the loan requests based on your annual income. That means the amount that you can borrow progressively increases as your annual income increases. If you earn a sufficiently high amount annually, the amount of loan that you can avail is quite significant.

There are certain things that need careful scrutiny before you finalize on your licensed money lender.

1. The agency should be listed in the list of licensed money lender Singapore as published by the Ministry of Law here.

2. Shortlist a few money lenders based on the interest rates (which are different for secured loans and unsecured loans) and the late fees that they charge. It is found that some agencies charge exorbitant late fees for even a single day’s delay.

3. It is the legal responsibility of the licensed money lender to explain the terms of the contract to you in a language that you are completely fluent in. Otherwise, the contract is not held valid in the Court of Law.

4. If it is a secured loan, do not sign a contract that allows the licensed money lender to put a caveat on your real estate in case of failure of timely repayment of the loan.

To sum up, plan your finances such that you will not need urgent or unsecure loans. See if you can find other avenues like banks or avail financial assistance schemes provided by the Government. If all these options fail, consider borrowing money from a licensed money lender Singapore, after taking all the above-mentioned factors into account. Don’t make the mistake of falling in the clutches of unregistered money lenders!

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