A money lender is a group, or individual, who offers personal loans at high interest rates, as opposed to a bank or financial institution. Singapore money lenders: find more info have been around since the dawn of time, also, almost from Day One, have been demonized as cruel, heartless exploiters of the poor and disadvantaged -- you only need to consider Shakespeare's Shylock to get a favorite representation of such a figure.



Fast forward into the 21st century, and payday loan lenders are greatly criticized and, in many cases, forced out of business in countries such as the UK because of unethical business practices.


However, what about legal money lenders? Are you currently on the level or just a conservative usurer in contemporary garb?



The first aspect to consider is whether they are legal and possess the appropriate licenses in place. This affords the borrower some protection against abuses on the part of the creditor, and imposes some degree of regulation on these, such as restrictions on the level of interest rate charged, limits on the amount that can be given, and eliminating a range of hidden fees frequently found in the sector. Never consider visiting an unlicensed lender, like a loan shark. You'll have no security undee the law and may open yourself up to any number of sharp practices.





Some Singapore legal money lenders are more restrictive than others in terms of that they will lend to, and also just how much. Some, by way of example, will not lend to students, part-time employees or holders of temporary residence permits, whilst others may stipulate that the potential borrower has to be earning a minimum yearly income. Others may require a referral from an existing customer or professional referee before they will give cash to some other client.




One more factor to consider is the level of documentation required by the creditor before they progress any money. This may include a copy of your passport or ID, proof of address, payslips and bank statements.



Whilst some of this may look like unnecessary charge, it can be argued that the further checks a lender makes in advance, the more professional they're very likely to be when handling your loan and repayments.



A sound recommendation prior to going to any legal cash lender is to read the online reviews, and get a good feel for who's reputable and that should be averted with the proverbial bargepole. If you visit a moneylender, you know that you are likely to pay higher interest rates, have steeper repayment plans, and pay more in fees than you would with a conventional bank loan. You have to be aware that licensed moneylenders are regulated, but not to the exact same level as a bank; therefore, the degree of protection afforded to you as a consumer is not as fantastic.



If that's the case, make sure that you go in with your eyes and comprehend what is being lent to you, on what terms and for how long. Above all, ensure that your cash lender is lawful. If they're not you're on your own.