Singapore’s legal money lenders are subject to strict government regulation. They must follow the procedures listed in the Moneylenders Act and be transparent with their interest rates and fees. If they fail to comply, their license may be revoked. This makes it important to know how to distinguish a legal money lender from a loan shark. A good way to do so is to look for signs of a scammer. For example, a legitimate moneylender will not demand personal information over the phone or via WhatsApp. They will also have a physical office that you can visit to verify their business.

Moreover, a legitimate licensed money lender in Singapore will not charge excessive processing and administrative fees. They also use the reducing balance method to calculate interest, which means that your interest charges decrease as you make repayments on your loan. This helps prevent borrowers from being charged unreasonable amounts of interest.

Trust and Transparency: Choosing a Singapore Legal Money Lender

It is also important to find out whether the money lender is licensed by the Ministry of Law. Check the registry to see the company’s business name, address, and license number. Avoid companies that do not provide these details on their website. Also, be wary of any money lender that uses abusive language or threatens you. Finally, a legitimate money lender will not visit your residence or workplace, or vandalize public spaces.

A legal licensed money lender in Singapore will be able to provide a variety of loans that meet different needs. For instance, if you are a Singapore citizen or permanent resident, you can borrow up to six times your monthly salary. However, you will need to provide certain documents and meet the minimum age requirement before you can apply for a loan.