Licensed moneylenders play an important role in the financial industry, as they offer customized loan solutions to borrowers that may not meet the strict criteria required by banks. They provide a more accessible route to borrow funds, especially for SMEs who have a hard time qualifying for loans due to insufficient collateral or a poor credit history. They also help alleviate the burden of debt on individuals by providing them with a way to manage unexpected expenses or invest in growth opportunities.
However, not all moneylenders are created equal. Some operate illegally or charge exorbitant interest rates that make it impossible for borrowers to repay their debts. This is why it’s important to find a reputable licensed moneylender who follows the rules and regulations set by the government. Here are some things you should look out for:
A reputable licensed moneylender will always require you to sign a contract. If the moneylender refuses to do so or makes it unclear what the terms of the contract entail, they’re probably not a licensed moneylender and should be reported to the Registry of Moneylenders at the Ministry of Law.
Additionally, a reputable licensed moneylender will always be transparent about their fees and charges. They should clearly state the loan quantum, repayment schedule and interest rate charged in their contract. They should also be willing to clarify and repeat information for borrowers who are unclear about certain terms.
Furthermore, a reputable licensed moneylender should never resort to aggressive or intimidating tactics when collecting their loans. This is because they are required by law to abide by a code of conduct that prevents them from engaging in unfair and anti-social behaviour, even during debt recovery proceedings. Some debt collectors have been known to splash o$P$ on the doors of their victims’ houses or threaten them with violence, but if you encounter a moneylender who uses such scare tactics, report them immediately to the Registry of Moneylenders at MinLaw.
Lastly, a reputable licensed moneylender is required to be registered with the Ministry of Law and must be able to display their registration number on their website or physical office. If they are not, they are likely to be operating illegally and should be reported to the Registry of Moneylenders immediately.
Overall, licensed moneylenders are a safe and convenient option for borrowers who are in need of quick cash to cover emergency expenses or invest in opportunities. They are regulated by the government and adhere to strict standards of business practice, making them an ideal choice for borrowers who want to avoid being scammed or harassed by debt collection agencies. Moreover, they are able to provide a one-stop service for all your loan needs by offering a wide range of loan products such as renovation loans, personal loans, educational loans and even debt consolidation loans. This will save you the hassle of having to apply for multiple loans with different money lenders and keep track of their different terms and conditions.