The well and richly developed economic situation that exists in Singapore today have allowed the residents to be secured in applying for financial assistance from both public and private financial institutions. A high percentage of individuals and families here earn enough income to allow them to apply for the type of loans to cover purchases of homes and other properties or to use the funds for additional or unexpected expenses. Because seeking financial assistance from lenders in Singapore has become common, various lending institutions other than banks and conventional lending companies have mushroomed in the country.
This situation speaks well of the financial condition of Singapore but like any other well-developed countries, it gave rise to some problems one of which is the presence of unscrupulous lending companies that prey on unsuspecting borrowers. I will try and give you some pointers that will in one way or another tell you the type of lenders you should avoid. However, let me point out that these types of lenders are mostly the unconventional lenders and whose main intentions are to simply lend out money to those in needs.
- First, make sure to avoid unlicensed moneylenders when thinking of applying for even small loans. You may have an easier time applying and having your loan approved from these types of moneylenders but you can bet your life that the interest rate is going to be very high and its repayment options very difficult to comply with. You must understand that a person or entity, whether licensed or not have the right to lend another individual money, but the unlicensed one is not bound by Singaporean laws covering money lending activities. You are therefore a lot safer by borrowing money from licensed lending institutions.
- Second, avoid moneylenders that advertise their services in the form of telemarketing or through SMS marketing. Legal moneylenders in Singapore are never allowed to do this as per instructions of the IPTO rules and privacy acts of the country. Illegal money lender uses these marketing strategies to reach out to clienteles so it would be best to avoid these lenders.
- Third, when applying for a personal loan, avoid moneylenders that claim to have the power to approve your loan and remit the loan amount via bank transfers. Most of these claims are bogus because the moment you have paid the fees and other charges for your loan, in all probability, there will be no cash that will be transferred to any of your bank accounts.
- Finally, avoid money lenders that would require you to disclose personal information over the phone. Some money lenders would trick prospective clients into disclosing personal data when the latter would call for some information relative to applying for a loan. Immediately avoid this type of lenders.