In times of dire need when you need urgent money, 24 Hours Licensed Money Lender in Singapore can help.
When faced with an urgent need for money, rely on the dependable assistance of money lenders in Singapore. The Registry of Money Lenders, implemented by the Ministry of Law, meticulously oversees the endorsed roster of licensed money lenders. These reputable lenders offer a wide array of loan options that cater to the financial requirements of Singaporean citizens. Whether you require funds for personal matters, business ventures, or foreigner-related expenses, these urgent cash loans are readily accessible.
What are 24 Hours Money Lenders in Singapore?
Contrary to what you are thinking, a 24 hour money lender in Singapore is not someone that can disburse instant funds – nor is some entity that is available around the clock to serve you money (if you come across one, please avoid it).
Instead, 24 hours imply that if you need money after their office hours, you can apply for it through their website.
As we mentioned earlier, the Registry of Moneylenders laid down by the Ministry of Law in Singapore creates a list of licensed money lenders. Here, one thing you need to keep in mind is that a legal moneylender in Singapore will always ask you to visit their registered business address to avail the money. However, if you come across someone who promised to send money directly to your bank account, it means that it’s an illegal lender.
What Is A Licensed Money Lender Singapore?
A licensed money lender in Singapore refers to an authorized lender that operates under the regulation of the Ministry of Law. These lenders are approved to offer instant loans to Singapore citizens, Permanent Residents, and even foreigners with valid Employment Passes. Choosing a licensed money lender is a reliable alternative for those in need of urgent personal loans. These lenders adhere to strict guidelines and regulations to ensure that borrowers are protected and receive fair and transparent lending terms.
When facing a financial emergency, it is reassuring to know that there are licensed money lenders in Singapore operating around the clock. A 24-hour money lender in Singapore can provide immediate assistance in times of urgent financial need. This round-the-clock availability allows individuals to access the funds they require, regardless of the time of day or night. Whether it is for unexpected medical expenses, home repairs, or any other unforeseen circumstances, a licensed money lender in Singapore can offer a reliable solution.
Choosing a licensed money lender in Singapore ensures that borrowers are protected by the law and have recourse in case of any disputes. These lenders are bound by the regulations set forth by the Ministry of Law, which protects borrowers from exploitative or unethical lending practices. By working with a 24-hour money lender, borrowers can have peace of mind knowing that they are dealing with a professional institution that follows the rules and provides a transparent and fair lending experience.
How to Know If You are Dealing with a Licensed Money Lender?
If you find the money lender’s registered business or name from the list provided by the Ministry of Law, it means that you are dealing with a legal one.
Furthermore, money lending is not allowed via text messages, social media platforms, or even phone calls. If you come across any money lender contacting you on either platform, you must shy away from them pronto.
In addition, you can also examine the fraud by checking the way money lenders are advertising. For instance, a licensed money lender is only allowed to advertise on the following:
- Any business directory only on the online media or print
- On an official website wherein the list of licensed moneylenders is given
- Advertisements are placed within their office premises either within the exterior or inside of their offices.
So, stay away from any moneylender who is advertising beyond the points stated above.
Which Activities are Prohibited for a Licensed Money Lender?
Any licensed money lender will never:
- Abuse or threaten
- Ask your ID and password
- Ask your other official documents including ATM cards
- Ask you to sign a blank or an incomplete Note of Contract
- Grants you loan without briefing the terms and conditions
- Process your loan via a text message or an email
- Withhold any part of your money without giving you an explanation
- Charge more than 4% of the monthly interest rate
How Can You Avoid an Unlicensed Money Lender Singapore?
Getting financial assistance in times of need may cause you to end up with an unlicensed moneylender. Taking advantage of the situation, such hoax money lenders further threaten or abuse and lead to many troubles. In this case, you must be vigilant about your options. Here are some tips that can help you
Apply for an Online Loan Through a Licensed Moneylender Application Form
A lot of licensed moneylenders today provide an online application form on their website through which you can easily apply for a loan even after their office hours. However, you may even come across illegal money lenders providing such an online application form by mimicking the logo and name of the licensed lender.
In this case, you can again check the list of Registry of Money Lenders by checking the website address provided in the list. Further, if you happen to look for moneylenders on a search engine, do not click on the ads. As we mentioned earlier, licensed moneylenders are prohibited to advertise on search engines.
Face to Face Verification is Crucial
As we mentioned earlier, you need to visit the office of a licensed money lender for the process of loan disbursement. The team will verify your identity and get you through the terms and conditions of the Note of Contract. Furthermore, you will also be provided a copy of the contract. If you come across any moneylender who doesn’t require a face-to-face verification, you should steer clear of them.
Follow the Rules on Interest Rates and Fees
Unlike licensed money lenders, unlicensed money lenders will offer 24-hour loans by asking for an upfront fee to process your loan. They might keep asking for more money until your loan is disbursed. Keep in mind that any licensed money lender Singapore will never ask for any money during the loan process. The moneylender will only ask for the following:
- A fee not exceeding 10% of the principal loan when granting a loan
- A fee not exceeding $60 for each month if you fail to repay
- Legal costs asked by the court for each successful claim
Also, as we mentioned, the interest rates cannot exceed 4% per month. Hence, do not fall for any money lender that offers a higher rate of interest along with exorbitant fees.
Protect Yourself from Online Loan Scams: Key Things to Consider
Avoiding online loan scams requires vigilance and a keen eye for warning signs. With the rise of illegal money lenders operating on the internet, distinguishing legitimate loan providers from scammers can be challenging. However, by paying attention to certain indicators, you can significantly reduce the risk of falling victim to a scam.
Here are some crucial factors to look out for:
1.Remote Application and Disbursement
In our increasingly digital world, it’s not uncommon for licensed money lenders in Singapore to offer online loan applications. However, this convenience also opens the door for unlicensed lenders to defraud unsuspecting individuals.
Legitimate money lenders will require a face-to-face verification before disbursing your loan. Conversely, scammers may approve your application through email, SMS, or phone, without any contract or in-person meetings. They might even deposit the loan directly into your account.
To protect yourself, it’s vital to verify the legitimacy of the money lender and ensure they have a registered business address and a proper application procedure. If a lender doesn’t require a physical meeting or a detailed loan contract, it’s essential to terminate all contact immediately.
2.Fees and Interest Rates
Be cautious of money lenders or loan sharks who request upfront fees, processing fees, or administrative charges before processing your loan. Legitimate money lenders do not ask for payment prior to loan disbursement. The only fee they charge is a 10% administrative fee, which is deducted from your loan amount upon approval.
Loan sharks typically impose exorbitant interest rates above 4% per month, intending to exploit borrowers for quick profits. Licensed money lenders, on the other hand, are strictly regulated by the Ministry of Law in Singapore and can only charge a maximum of 4% interest per month for both nominal and late repayment interest.
Always scrutinize the interest rates being offered and opt for a licensed money lender to secure the best possible terms2
3.Valid Physical Addresses
Licensed money lenders must have physical addresses where borrowers can visit for verification, loan contract discussions, and clarifications. If a lender cannot provide a physical address, it is likely an indication of fraudulent activity.
For peace of mind, consult the Ministry of Law’s website, which maintains an official list of licensed money lenders and their respective addresses in Singapore.
Have you ever received unsolicited text messages about loans? Chances are, those messages are coming from unlicensed money lenders or loan sharks.
In this digital age, businesses are embracing new technologies and using various strategies to reach potential borrowers. They may employ tactics like SMS advertising, WhatsApp messages, flyers, and emails to lure people into borrowing from them.
However, it’s important to note that these practices violate advertising regulations for licensed money lenders. So, if you ever receive such advertising, it’s advisable to immediately block and report the number.
Licensed money lenders are only permitted to advertise through the three aforementioned channels. They are subject to strict regulations, and advertising illegally can result in their licenses being revoked. Therefore, it’s always recommended to deal with licensed money lenders, as they are mandated by the Moneylenders Act in Singapore.
The government of Singapore allows licensing of money lenders under the Ministry of Law to provide financial assistance to its citizens in urgent needs. This includes personal loans, business loans, and even foreign loans for people to meet their needs. However, staying cautious while this process is highly important to stay away from hoax money lenders.
If you are looking for a licensed money lender in Singapore, Tradition Credit can help you. Established in 1994, the team at Tradition Credit offers a comprehensive suite of financial services solutions including business and personal loan services. The efficient staff is knowledgeable and able to assist you with the best option by analyzing your financial needs. The team also ensures that no extra fees or early repayment are availed from the customers.
All you have to do is apply for the loan on their website, the team will get back to you to discuss your application and options. Once it is fixed, the team will verify your documents and confirm the facility amount. Lastly, you will be asked to sign the documents and you will receive the loan amount on the same day of your application. With such fast and easy service, Tradition Credit is no doubt the go-to option for people in Singapore. You can know more about them here.
FAQs on Borrowing from 24-Hour Licensed Money Lenders in Singapore
What signs should I be cautious of?
Loan sharks employ various tactics to entice individuals into falling for online loan scams. Some may even pretend to be licensed moneylenders. Apart from ensuring that the moneylender is licensed, be cautious and watch out for these warning signs as well:
- Requesting your SingPass username and/or password
- Keeping hold of your NRIC card or other personal identification documents
- Asking you to sign an incomplete or blank loan contract
- Granting you a loan without receiving your loan application
- Giving you a loan prior to face-to-face verification
- Using abusive language, making threats, or engaging in harassment
- Withholding a portion of your principal loan for any reason
How can I file a complaint against a money lender?
If you come across illegal moneylenders, promptly report them to the Registry of Moneylenders at 1800-2255-529 or via the Ministry of Law’s website. The Registry will thoroughly investigate all complaints. Rest assured, your personal information will never be disclosed to the moneylender without your consent. However, you may need to attend an interview with an officer to provide all the necessary information and documents regarding your loan transactions.
For unfair practices and contracts, you can pursue the matter through the Small Claims Tribunal or the Court under the Consumer Protection Act.
Is it possible to borrow from more than one moneylender?
Yes, you can borrow from multiple moneylenders. However, it is strongly discouraged due to the risk of becoming overwhelmed and losing track of your repayments. If you can afford the repayments and consistently make timely payments, it might be manageable.
Please note that there are no 24-hour moneylenders in Singapore. Any creditor promising round-the-clock service operates illegally or is a loan shark. Nonetheless, you can apply on licensed moneylenders’ websites at any time of the day. Additionally, you have learned how to avoid dubious individuals or organizations.
Now, let’s address some frequently asked questions:
How is the interest rate calculated?
As previously established, the maximum permissible interest rate is 4% per month. Regardless of your income level or borrowing amount without collateral, no one can charge you more. Let’s say you are borrowing $1,000. In the first month, the interest rate would amount to 4% of that $1,000, which is $40. In subsequent installments, you will pay 4% of the remaining balance. Therefore, as your debt decreases, the actual interest amount decreases as well. If you need assistance, you can use our personal loan calculator to help you.