Saving up for a big purchase can be difficult, especially when you have other daily expenses to take care of. If your family is in need of money and you don’t know where else to turn, then a moneylender may be the answer.
There are many benefits to using a licensed moneylender like QV Credit. For example, they can offer you loans at better rates and terms than most banks or other lenders. These lenders also make it easy for you to borrow money when you need it because they don’t require any collateral.
This blog post discusses how to be aware of unlicensed money lenders, the warning signs, and your options if one approaches you.
How to Spot an Unlicensed Moneylender?
Many warning signs can help you identify an unlicensed moneylender. For example, they may ask for large amounts of cash upfront and offer extremely high-interest rates. These lenders are also known to harass their customers constantly with phone calls and texts even after the loan is paid off to get more money from them.
If you encounter any of these red flags, then you should be very cautious when dealing with this moneylender.
- They ask for an upfront payment or fee before approving the application.
- The interest rates are extremely high and out of line with market standards.
- You have a hard time getting in touch with them after agreeing to their terms because they never return your calls or texts messages.
- You are harassed with constant phone calls and texts even after you have paid off the loan.
Unlicensed money lenders are everywhere, and they are a threat to your financial well-being. They can be extremely difficult to deal with, and you might even have trouble getting them off of your back when the loan is paid in full. It’s best if you stay away from these moneylenders altogether because they will only cause problems for you later on down the road.
Tips to Avoid Unlicensed Moneylenders
While unlicensed money lenders are still growing in numbers, many people do not know that they exist. Here is an informative list of tips to help you avoid illegal moneylenders:
- Do your research before choosing any kind of money lender
- Be wary if the interest rates seem too good to be true or offer extremely high returns for cash loans
- If possible, choose someone familiar like a friend, family member or colleague as opposed to some stranger online
- Avoid quick and easy lending options because it will be difficult for you to get back what was lent out should there ever be an issue with payments etc.
- Call the Moneylenders Association of Singapore at 1800 233 3216. This hotline provides information about registered moneylenders only so that you can get accurate advice about where to obtain a loan.
- Be wary if an agent or broker claims they have special connections and grant exclusive access to loans from licensed lenders because this is misleading since all moneylenders are required by law to offer their services equally regardless of whether they’re licensed or not.
- Don’t fall for any advertisements promising easy cash in as little as 24 hours because there’s no such thing as “easy” cash when it comes to borrowing money, especially without proper credit checks.
- Be sceptical of any offers coming from friends, family members or strangers. They may be trying to trick or scam you and take advantage for their own personal gain.
How to Spot a Licensed Moneylender?
Suppose you’re looking to borrow money legally. Whit this case in mind, you should ensure that you always deal with moneylenders who are licensed by the Moneylenders Association of Singapore (MAS) and on their official website. They’re also well-known for having access to better rates and terms than unlicensed lenders since they have a strong reputation in the industry.
The best way to ensure that your moneylender is registered or approved by MAS is to determine if they follow the requirements below:
- A licensed or registered moneylender is required by law to display their license number prominently on all of their advertisements, websites and office signs.
- A licensed moneylender is also required to offer you a copy of your contract within three days after signing, so make sure you ask for it before parting ways with any agent or broker representing these lenders.
- A licensed moneylender will never ask you for an upfront payment or fee before approving the application.
- The interest rates should be reasonable and in line with market standards.
- They are easy to get a hold of because they respond quickly whenever you contact them either by phone, email or text message.
- Their agents and brokers provide accurate advice about where to obtain loans without misleading claims of special connections that grant exclusive access to licensed lenders only.
It’s best to borrow from or take out loans with a registered, licensed, and reliable lender like QV Credit. They offer competitive rates as well as excellent customer service that is second-to-none! Unlicensed money lenders are not regulated, and they will charge you a much higher interest rate than licensed ones.