A Loan Agency is a private institution that provides financial assistance to people looking for alternatives to bank loans. It offers a wide range of unsecured loans with low interest rates that can be paid in installments. These loans can be used for a variety of purposes, including home renovations, educational expenses, and personal emergencies.
The most important factor in choosing a licensed money lender is to ensure that they are legitimate and have a valid license from the government. This can be verified by checking their business name, license number, and office address on their website. The Ministry of Law also maintains a list of approved money lenders.
Licensed moneylenders are usually regulated by the Ministry of Law and can only provide loans that are legally authorised to be provided in Singapore. They have the power to levy fines and even prosecute those who don’t comply with their rules.
There are many benefits to borrowing from a licensed money lender in Singapore. They are more reliable than unregulated lenders and provide a higher level of protection for borrowers. In addition, they offer a wider range of loans to suit the needs of different people and businesses.
They can also help you get the amount you need without a high credit score. Nevertheless, you should always read the terms and conditions carefully to make sure that you are getting a good deal.
Another benefit of borrowing from a licensed money lender is that they can charge you interest only on the actual principal balance. This is a much lower rate than the interest that a credit card company or mortgage broker would charge. The maximum interest rate that moneylenders can charge is 4% per month, no matter your income or whether the loan is secured or unsecured.
Additionally, the late interest rate is capped at 4% per month for each month that you repay your loan late. You can ask for a waiver of this fee, but only when you can prove that you are in immediate financial difficulty and cannot afford to pay your loan back on time.
Lastly, you should avoid loans from illegal or unscrupulous loan sharks. These shady moneylenders are notorious for harassing borrowers and charging them with a series of hidden fees and charges. If you think you’re dealing with an unscrupulous moneylender, contact the police.
Some of the common types of moneylenders in Singapore include pawn shops, banks, and credit unions. Each one has its own set of requirements and can be a bit confusing to figure out which is best for you.
For example, banks often require that you have a steady source of income and be at least 18 years old to apply for a loan. While pawn shops are a little more flexible, they still require that you have certain types of assets to use as collateral.
There are also other loan agencies in Singapore that provide a variety of options for individuals and businesses. They can offer everything from bridging loans to corporate finance. moneylender near me