Singapore Money Lenders – Red Flags to Watch Out For

Licensed money lenders in Singapore operate under strict supervision by the Registry of Moneylenders, which is a branch of the Ministry of Law. They are also bound by the Moneylenders Act to abide by certain regulations that protect their borrowers from predatory lending practices. If you encounter a money lender that uses abusive language, threatens or intimidates borrowers, or visits your residence to collect your loan repayment, you should file a complaint against them. These activities are illegal and indicate that the money lender is unlicensed.

Another red flag to watch out for is when a money lender demands upfront fees. Licensed money lenders in Singapore are required to spell out all fees and charges before disbursing loans, but some may try to hide additional costs from borrowers. They are prohibited from charging interest rates higher than those imposed by the Registry of Moneylenders, and late fees should not exceed 4% of the principal amount.

In addition, a licensed money lender should always provide you with a written contract with all the terms and conditions of the loan. If a licensed money lender does not clearly state these details in the contract, they are likely operating illegally. It is also advisable to read reviews online and compare loan plans before choosing a money lender.

1AP Capital is a top licensed money lender in Singapore that prioritises the needs of its borrowers. Their team is comprised of professional and experienced individuals who have a deep understanding of the financial market. They are dedicated to providing reliable financial assistance and have helped thousands of households. They offer a variety of personal loans, business loans, and renovations packages to suit your unique situation. You can find out more about their services by contacting them today.money lender loan singapore