Are you looking for a lending institution or bank that offers an urgent cash loan in Singapore? Many people have started to suffer financially because of the pandemic. Some even reached the point where they spent all of their savings, and some sold their assets or investments.
It is no doubt that during challenging times, most people rely on banks or debt agencies. They have always believed that personal or online loans in Singapore are their quick solution.
Before borrowing money from lending agencies or banks, do thorough research about personal loans first. Enlist all reasons why you need a loan, ways on how you can pay back, and other plans in case of emergencies. You may also research how a debt consolidation loan works in Singapore and other possibilities that can help you pay off your debts in case you really plan to borrow.
HOW TO AVOID BORROWING MONEY FROM LOAN SHARKS?
Singapore is one of the most expensive cities and wealthiest countries all over the globe. However, despite the hustle and bustle of life, some citizens and migrant workers are still affected by poverty. Most of them are left with no choice but to borrow from loan sharks. They may seem like an instant and easy solution for an urgent cash loan in Singapore, but they are a double-edged sword. Here are a few red flags you must observe to avoid loan sharks.
1) AVOID borrowing from unregistered moneylenders.
Did you know that there are laws for money lending activities and institutions in Singapore? The Ministry of Law (MOL) enacted the Moneylenders Act in 2008. Aside from that, the MOL also established The Registry of Moneylenders (ROM). They are responsible for the registration and regulation of LICENCED moneylenders in Singapore.
Under the Moneylender Act of 2008, it states that:
- Only authorised persons or registered members are allowed to conduct and participate in the money lending business. They must be registered under the Registry of Moneylenders and granted a licence.
- Only the ROM can oversee and inspect all licensing, testing, and reviewing that involves the registration of the moneylending applicant.
- Only the ROM can revoke a moneylender’s licence. They will conduct an in-depth investigation of the member’s academic, social, and financial backgrounds. It is to prove that the member’s licence can be revoked.
There are many more provisions under the Moneylender Act of 2008 that can help maintain the regulations for the money lending businesses in the country. Also, the ROM can ensure that the money lending industry is highly regulated and observed. So, if you are planning to borrow a personal or payday loan in Singapore, you may ask or contact the RoM first to check if they are registered or not.
2) AVOID money lenders in guerilla advertising.
Loan sharks or illegal money lenders will use various guerilla advertising to persuade you. They will promote low-interest rates, freebies and discounts, or online loans in Singapore to drive the public to reach out to them. An obvious red flag from a loan shark is frequent messaging on your phone number. They will keep sending text messages, email, or chat messages on your social media account. These messages will come from an unknown person or number that will provide you with tempting payday loan offers in Singapore.
One thing that you should know before borrowing an urgent cash loan in Singaporeis that licensed money lending businesses or banks cannot reach out to you regarding loan offers. The Ministry of Law strictly forbids licensed moneylenders from performing any outreach activities to their clients. They are only allowed to advertise through their website or give flyers within the areas of their physical branch. That is why loan sharks use guerilla advertising and send unsolicited messages because they do illegal money lending activities.
3) AVOID money lenders that issue blank contracts.
All licensed money lending businesses or banks will issue and even read the agreement. They will have a representative that will read and explain the entirety of the contract to you, including the terms and conditions. Once you have fully understood, you can sign the waiver and acquire your urgent cash loan in Singapore. It is highly significant to read the contract and ask many questions as you like to ensure you completely understand your loan’s terms and conditions.
A red flag to avoid from a loan shark is a blank contract. Most likely, it will only include your loan amount and nothing else. Before borrowing an urgent cash loan in Singapore and signing the contract, check for these essential provisions first:
- Identity of all parties, including the name, contact details, and address of the borrower and lender
- Date of the agreement
- Amount of loan
- Interest rate
- Repayment terms – it can be through instalment, at the end of the loan agreement, or payment on demand
4) AVOID money lenders that offer unbelievable low-interest rates.
As mentioned earlier, a contract on borrowing an urgent cash loan in Singapore should include the interest rates. If you are unable to pay on time, the interest rate may or may not increase. Likewise, it should be included and written in the contract. Licensed moneylenders and banks MUST strictly follow Singapore’s government regulations about their interest rates and existing market valuation.
Loan sharks do not play with the rules and abide by any regulations. They will offer you unbelievable low-interest rates at first and then set them as high as possible. Your loan’s interest rates will abnormally skyrocket. If you inquire regarding their derivation formulas, these loan sharks will never bother answering your inquiries. Instead, these loan sharks will use violence, threats, and other abusive actions for you to follow. So, before engaging in online loans in Singapore from loan sharks, think thoroughly about it first.
It is normal to borrow an urgent cash loan in Singapore, especially in case of emergencies. But as a responsible citizen, it is relatively crucial to research the credible and reliable money lending banks and agencies first.
Also, look for debt consolidation loan offers in Singapore within your reach and means. If you choose a higher offer than a conventional one, you may have difficulty repaying it. The entire process of borrowing loans is a huge responsibility that requires discipline.
Do you need a credible and trusted company that offers an urgent cash loan in Singapore? Feel free to contact Monetium Credit through email@example.com or message them on their website.