Do you need a license to lend money in Singapore?

For borrowers who are in the midst of financial difficulties, a  Singapore legal moneylender may be able to provide them with a much-needed cash injection. These lenders are regulated by the government to ensure that they offer fair and reasonable rates, and adhere to specific guidelines that protect both borrower and lender alike. As the lending industry continues to grow, it is important for borrowers to be aware of what to look out for when choosing a loan provider.

The Moneylenders Act sets out clear parameters that moneylenders must follow to guarantee both a safe and fair borrowing experience. These include restrictions on interest rates and fees, as well as guidelines around ethical lending practices. Those who are seeking out a legal Singapore moneylender should be familiar with these provisions so that they can avoid dealing with unlicensed moneylenders or “Ah Longs.”

A good way to determine whether a moneylender is licensed in Singapore is to check their credit license number, which will appear on their website and business cards. You can also find the Ministry of Law’s official list of moneylenders online. In addition, a legitimate moneylender will never send unsolicited emails, text messages, or WhatsApp calls requesting personal details or asking for advance payments. Likewise, they should be able to provide a copy of the loan contract within 24 hours.

It is important for borrowers to choose a moneylender with a strong track record. Accredited licensed moneylenders like Accredit have a long history of compliance and are committed to providing a safe and responsible borrowing environment. A reputable moneylender will also be willing to work with borrowers to find a solution that fits their unique circumstances.

Licensed moneylenders in Singapore are not permitted to harass borrowers over debt repayments, and it is illegal for them to contact a person who has voluntarily sought help from social services. Harassment is a serious offense that can result in fines or even imprisonment. Moreover, it is important for borrowers to know that they can file for bankruptcy to stop the accumulation of interest charges on their debt.

Legally, a moneylender is allowed to charge an interest rate of up to 4% per month on unsecured loans. This is great news for borrowers, as it allows them to take out a loan without breaking the bank. However, it is important to note that a personal loan is not intended for long-term financial assistance, and should only be used to cover immediate expenses.

To protect borrowers from fraudulent moneylenders, the Singaporean government has passed the Moneylenders Act. This legislation stipulates that only licensed moneylenders can offer credit to borrowers, and that a debt collector must obtain a court order before collecting outstanding debts. The Act also provides a list of offences and penalties for those caught engaging in unlicensed moneylender activities, including hefty fines and imprisonment. Borrowers who are indebted to illegal moneylenders should seek the help of a debt management company to restructure their loan repayment schedule and prevent further financial distress.