The financial economy is dependent on cash flow. How society can pay its debts and give credit determines a lot of other economic factors.
Regardless of the financial status of an individual, it is inevitable to get a loan. Either to finance a business, build a new home, or finance one’s education, getting credit is a lifeline.
In a city like Singapore, where the cost of living is high, the demand for personal loans is also high. The loans barely allow a family to survive, but the good thing is that there are so many credit providers and money lenders in Singapore.
To aid individuals in choosing the right money lender, the Singaporean government has a lot of licensed firms registered under the Insolvency and Public Trustee’s Office (IPTO).
To help you with choosing the right money lender, you should follow the following tips:
You should first research about your money lender.
The first thing that you must do is to research your money lender. Verify their registration, check their licensing number, and make sure that they have the right kind of record.
The money lender should get registered with the Registrar of Moneylenders Office. Without registration, The money lender is not legal, and you should steer clear of it.
You should check the feedback about the moneylender.
There are so many ways of checking feedback such as on their website and their social media accounts. You can also ask around. Ask people who have already experienced the moneylender and their ways. In case of doubt, try out another lender.
The right moneylender should follow IPTO regulations.
The IPTO regulations require a lot of protocols to protect the borrower. The following are the requirements:
- The borrower must personally visit the office of the moneylender to collect the lump sum. This process ensures that the borrower has the option to verify all of the paperwork before signing the contract.
- The moneylender must contact you only via their registered landline. All legal moneylenders who register with the government should only use their designated landline for advertising and contacting potential borrowers.
- The moneylender must be transparent in their Terms and Conditions. All moneylenders must ensure that they create the loan contracts with clear terms that are easy to understand. While the borrower needs to examine the document before signing, the lender should make sure that it is easy to understand.
Always check the terms about the interest rate.
To make sure that you have the right moneylender, they should impose interest based on the limits required by law.
Before any licensed money lenders in Singapore can be registered, they should adhere to follow strict rules. If you want to learn more about these rules, you can check them out on the website of the IPTO. If you have any doubt about the money lender, you should not go through with the loan application. There are a lot of personal loan providers in Singapore that get properly registered, you only need to research.