Who Are Unlicensed Moneylenders?
You shouldn’t take the first offer you are given, even though you may have secured a low-cost personal loan. When accepting the terms set out by your lender, make certain that you can afford the repayments. Call Singapore Police Force if you encounter one.
How Can You Spot an Unlicensed Moneylender?
It’s not easy to spot a few items. Secondly, illicit moneylenders have a worse reputation than regulated ones. So, anything suspect typically is. Second, illegal moneylenders typically do shady things. They may retain your ID card or have you sign an English contract you don’t understand. Finally, uncontrolled moneylenders may charge excessive interest rates. Hence, if you get a loan offer, do your research and operate with licensed moneylenders.
What To Do if An Unlicensed Moneylender approaches you
Just leave. These lenders prey on needy individuals and won’t disclose loan conditions. They’ll make you think you’re getting a bargain when you’ll spend a lot. If you can’t leave, be vigilant about loan conditions. Know your loan amount, payback plan, and interest rate. Read everything before signing it. Keep track of the loan amount, payback schedule, and interest if you borrow from an unauthorized moneylender. This protects you if anything goes wrong.
Alternatives to Unlicensed Moneylender Borrowing
You’re stuck and in need of quick money. You might approach an unauthorized moneylender, but it is not recommended.Before choosing, consider your many possibilities. Ask relatives or friends for a loan. They may not lend as much as an unregistered moneylender, but at least you won’t risk your safety. Bank or credit union loans are another option. These loans normally have interest rates lower than those offered by illegal moneylenders, and the application procedure is sometimes rather simple. Hence, before you make the mistake of borrowing money from an illegal moneylender, make sure you carefully explore all of your other options first. It’s possible that the sheer number of satisfying choices may surprise you.