5 Tips To Help You Avoid Illegal Lenders In Singapore

When looking for a best money lenders in Singapore to help you with your financial problems, it’s critical to find one that provides a legitimate and trustworthy service. This is why it’s crucial to research into the backgrounds of any moneylenders you’re considering working with, as not everyone will be able to match your requirements.

  1. Moneylenders With A Licence

Avoid using telemarketing services or sending SMS messages to potential customers.

The manner in which services are offered to clients is one definite approach to distinguish a legitimate moneylender from an illegal one. You may now receive random SMS messages from businesses advertising their products and services. On the other hand, a licensed lender does not use such a tool to disseminate information about their firm to the general public. Telemarketing and SMS advertising is not recommended by the Ministry of Law’s standards and laws. The same is true of Singapore’s privacy laws, and businesses that fail to comply risk being fined by the authorities.

Unfortunately, some unlicensed moneylenders that engage in illegal business operations have begun to use the same method that banks use to send text messages to their consumers. These templates have been slightly modified to include the moneylender’s phone numbers to persuade individuals to borrow money from the company.

  1. Off-Site Internet Bank Transfers Are Never Done By Licensed Money Lenders.

If you come across a money lender that offers bank transfers as a method of transmitting money to borrowers via the internet, be cautious and consider it a red flag. They do this because they are afraid of being labelled as illegitimate if they follow the appropriate procedure.

They try to avoid paperwork as much as possible, and they may not even have a physical office where you may bring your issues and questions. A licensed moneylender, on the other hand, will need you to submit paperwork to back up your application, as well as a visit to their office to double-check everything you’ve supplied them. Singpass MyInfo logins are done manually on-site. This method of processing the application is lawful and professional, and it allows both parties to clarify their positions.

  1. Never Give Out Your Singpass Password Over The Phone Or By SMS.

SingPass is a one-of-a-kind security code that protects your personal information. This is why you should do everything you can to keep your SingPass away from prying eyes, especially over the phone.

On the other hand, Illicit moneylenders always need borrowers to submit such information over the phone to determine a potential client’s employment status and income.

Remember that licensed money lenders only conduct verification on-site and in person, not over the phone or via text message.

  1. Before Employing A Singapore Moneylender, Do Your Homework.

Money loan companies aren’t all created equal. Some have been lawfully licensed by the authorities and those who are illegally functioning. This is why, instead of just doing a random Google search for moneylenders, go to the Ministry of Law’s Registry of Moneylenders (ROM-MinLaw) website first. The ROM-The Ministry of Law’s website contains information about Singapore’s listed and licensed moneylenders. Other crucial information must be posted in their office, such as a valid and active license number.

  1. You’ll Need to Go to a Licensed Money Lender’s Office And Bring Your Income Documents And Other Details.

Suppose you’re told you can transmit everything via fax or email, removing the need to send documents in person. In that case, you should trust your instincts if you have any reservations about the moneylender. Furthermore, if the lender cannot provide you with the location of the lender’s office or retail store when you need it, if your question about the location, you should avoid it because you could be in serious trouble.

A regulated and trustworthy money lender that offers personal loans Singapore for example will provide you with a physical address where you may pick up your funds, and you are required to do so. This is a Ministry of Law requirement that guarantees the paperwork is legal and enforceable. But don’t be concerned; the complete treatment should take 15 to 30 minutes.


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