Legal moneylenders are people with legit businesses that lend money to those who need it, charge interest on repayments but do so by abiding by the law. There are many reasons why people would borrow money from a lender such as last minute bills, fixing the car or educational purposes. Regardless of the situation you’d be better off borrowing smaller loan amounts from the best moneylenders in Singapore and it’s in your interest for them to be licensed.
Legal money lenders are required by the law to explain the conditions of the loan to you in a language you understand. They must give you a copy of the contract containing details of your repayment schedule, the interest rate and any other fees you will have to pay for.
Because they’re regulated by the Ministry of the Law, they can’t physically harass or threaten you for the money.
The new moneylenders regulations which were put in place in October 2015 means that caps have been placed on how much they can charge you for administration fees, late fees and interest fees.
Unlike banks in Singapore, legal money lenders can borrow money to you at short notice and give it to you at lower rates. If the proper documents are available, your request can be approved as quickly as 30 minutes.
Things to consider Before you decide this is the route you want to take, you should remember are obligated by law to fulfill the terms and conditions of your contract with a licensed money lender so you need to consider your current financial obligations and whether you’d be able to pay back what you want to borrow.
You should also treat lenders like shopping products. Shop around and compare legal money lenders and banks to see which ones provide the best interest rates to help you with your situation. The Ministry of the Law have a list of the best moneylenders in Singapore that they approve of; this would be a great place to start your search.