Whether you want money for a wedding, funeral, study, renovations, a licensed moneylender is the ultimate solution. However, you may wonder if borrowing money from a licensed moneylender is safe. The good news is that it’s safe.
But people usually take a shortcut to go unlicensed moneylenders which acts convenient but it’s a lot risky. Most unlicensed money lenders are scammers looking for people to take advantage of and they can cause harm to you and your family. Therefore the safe thing to do is to get money from a reputable and trustworthy licensed moneylender. Here are some reasons why it’s safe to take a loan from a licensed money lender.
Licensed Money Lenders are Legitimate
Taking a loan from a licensed money lender is safe because licensed money lenders are legit. They are not fake entities like unlicensed loan givers, popularly known as loan sharks. The good thing about dealing with licensed moneylenders is that you won’t be committing any crime. In contrast, borrowing money from unlicensed loan givers is illegal. Licensed Money Lenders follow proper channels in everything. But with unlicensed ones, failure to repay due to certain circumstances may come with harsh consequences.
Licensed Money Lenders are Governed by the Law
Borrowing money from a licensed money lender in Singapore is safe because it is governed by the Moneylenders Act which ensures that you’re safe when you borrow money. It also monitors the conduct of the licensed loan giver.
The Moneylenders Act also governs the licensed loan givers’ collection procedures. This means that any defaulted repayments are handled by debt collectors according to the Credit Collection Association of Singapore standards. Borrowing money from a licensed moneylender will ensure that you don’t get any form of harassment in the event of defaulted repayments.
Licensed Moneylenders Value Transparency and your Privacy
The other reason why it’s safe to take a loan from a licensed money lender is that you’re guaranteed transparent transactions. A licensed moneylender won’t hide information from the borrower and is open in everything they do. Unlike unlicensed money lenders, licensed loan givers will inform you all you need to know for the entire time you’ll be dealing with them.
On the other hand, unlicensed money lenders will hide some information so that you won’t be suspicious of them. Licensed moneylenders respect your private information and won’t disclose it to anyone, unlike unlicensed moneylenders. If you want your private information to be safe, a licensed money lender is a way to go.
How to know if a Moneylender is Licensed?
Many people have fallen victim to unlicensed moneylenders who pretend to be authorized moneylenders. To make sure you don’t fall victim to such scammers you should not meet with loan givers in places that are not authorized business areas. All procedures like signing papers should be done properly. To find out if a moneylender is licensed in Singapore you can visit the Ministry of Law’s website. On the website is a list of licensed moneylenders like UK Credit Singapore.
You can also know that a moneylender is unlicensed by the way they conduct their advertising. Unlicensed moneylenders advertise through call or text whereas licensed moneylenders use legal platforms like their website. There are many other ways of finding whether a moneylender is legit or not.
If you need cash to cater to any need, a licensed moneylender is a solution. With a licensed money lender like UK Credit Singapore, you’re guaranteed affordable interest rates, transparent transactions, and reasonable loan duration. The good part is that you don’t have to worry about your safety because a licensed moneylender is governed by the law.