Borrowing Money Legally from Moneylenders in Singapore

During these unprecedented times, as the world continues to deal with the effects of the pandemic, it is best to be equipped for all kinds of emergencies. This includes instances where you may find yourself in financial need without having enough funds at hand.

This is when you can consider borrowing money from licensed moneylenders in Singapore, who can help you overcome the situation.But first, you need to understand: What exactly is a licensed moneylender?

According to the Moneylenders Act, a moneylender is a person or an agent carrying out the business of moneylending. Always keep in mind that under Singapore law, no person can be a moneylender without having a license to do so, unless they are exempted under the Moneylenders Act.

Exempted moneylenders in Singapore are those who are permitted to lend money under a law other than the Moneylenders Act, for instance, a pawnbroker, who has been permitted under the Pawnbrokers Act.

What do you need to know from the moneylenders?

As with any transactional dealing, it is imperative to know your rights and the information that you must receive at the time of any agreement.

A licensed moneylender must inform the borrower about the terms of the loan, interest rates, late interest charges that they may incur, and other important details such as the instalment schedule.

You also need to check for a cautionary statement. This can be a powerful tool for you as it informs the borrower of any untoward conduct carried out by a moneylender. It also informs the borrower about where to report or lodge a complaint, should a situation like that arise.

What makes you eligible to borrow money?

Under Singapore law, there are certain requirements that Singaporeans and PRs must complete to borrow money from a licensed moneylender.

Not a Singaporean? No problem. Given the cosmopolitan and diverse nature of Singapore, a lot of expats make the country their permanent or temporary home. If you are a foreign national residing in Singapore and find yourself in dire need of money, licensed moneylenders can help you out. You’ll need a few additional documents, such as:

Know your rights

The borrower must know their rights and be aware of any malpractices that they can fall prey to. Here are a few things to keep in mind when you are dealing with a licensed money lender in Singapore:

• Remember that at no time should you entertain any threatening language from them.
• None of your important identification documents can be held by the lender.
• Withholding any part of the principal loan amount by the lender must not be accepted under any circumstance.

In cases where you feel that you are being subjected to unfair practices, you can report the moneylending company or lodge a complaint at the Registry of Moneylenders.

For a convenient and quick loan, reach out to R2D Credit today. We provide hassle-free, quick loans that are suited for your needs, whether it is to purchase a big ticket item, fund your education, or support any medical emergencies.