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Tag: Money Lender Singapore

Why is borrowing from an unlicensed money lender a bad idea?
Why do many Singaporeans turn to unlicensed money lenders to get some quick cash? Well, in Singapore, borrowing money from banks can be a very tedious process. For one, there is a ton of paperwork involved, and banks usually require you to be in decent financial standing to borrow from them. It also takes banks ages to approve a loan, and there is no guarantee that you will be approved. As such, some people approach money lenders when they need to take out a quick loan. However, it can be dangerous to borrow from an unlicensed money lender.
What is an Unlicensed Money Lender?
Unlicensed money lenders are better known as ah longs or loan sharks. These money lenders charge very high interest rates, possibly up to 40% of your loan. Additionally, they can resort to using force and threats if you do not pay them back on time. One famous example is the “O$P$” spray paint on one’s house or property. Loan sharks may even hang pig’s heads outside one’s door if they are late for payment.
Unfortunately, it is usually easier to make a deal with an unlicensed money lender than with a bank, as ah longs do not care much about your financial standing or paperwork, only that they will be able to get their money back with a high interest rate. As a result, Singaporeans that are unable to make enough money to repay both their loans and high interest usually end up constantly being harassed by these loan sharks.
You probably do not wish to fall into the predicament of being unable to repay a loan shark, but what if you are also unable to borrow money from banks? Who can you turn to then?
Licensed Money Lenders
Thinking of money lenders may bring to mind ah longs or loan sharks, but actually, not all money lenders are bad. There are licensed money lenders out there who are required to abide strictly by Singapore’s law, under Ch. 11.2.3 Section 2 of the Law of Credit Security, Commercial Law of Singapore. Most of these licensed money lenders are credit institutions that have been approved by Singapore’s law.
Why Licensed Money Lenders?
Licensed money lenders usually do not restrict the amount of money you can borrow. Unlike banks, they are more likely to offer small loans as it is also less of a loss to them if the deal becomes a bad debt. However, if you are looking for a larger sum of money, they are probably not a good option due to their higher interest rate.
You can also get your loan approved much faster with licensed money lenders than you would with a bank. Since the loan amounts are smaller, they do not check as much paperwork and you can even get the loan approved within half an hour!
Additionally, licensed money lenders are more lenient with your financial standing. Since they tend to cater to individuals that are unable to borrow from banks, they do not pay as much attention to poor credit ratings. However, you should still make sure that you do not have any outstanding loans or a large credit card debt.
January 20, 2020
How to avoid scam while looking for money lender in Singapore?
We all need money sometime or the other, what if the money need is very urgent? You would like for borrowing feasibility from a financial institution, banks, and money lenders and so on.
In case you are not cordial with the terms and conditions of your bank then go for a licensed money lender in Singapore. Also, make sure you consider certain parameters and double-check on the potential ways to avoid any scam or fake scheme before borrowing any money;
1. Credit check- not necessary
Most reasonable lenders check your credit statement to regulate and analyze if you’re in a position to repay them or not! A high credit score showcases that you repay your arrears on time, without any irregularity. In case a money lender doesn’t want your credit score, then it’s an alarming sign! A scammer usually does not pay much attention to your solvency as it is required after your personal information and that’s what he needs!
2. The moneylender does not have a government-issued license
The Singapore government need creditors to list themselves for a license. In case you find a corporate is not licensed to function in Singapore then it is better not to respond to its loaning queries. You might just be got targeted by a fraudulent website via a business’s name to make cash. Approved money lenders in Singapore usually mention their authorization number on their websites.
3. Your loan offer details are incomplete
As per the Moneylenders Act, all lenders are required to arrange for complete terms and conditions applicable if anyone borrows a loan, together with the closing cost of the principal and interest before one signs the loan agreement. If your loan offer lacks details or has incomplete information, then it might work out adversely thereby, always know and understand every term of the loan from your licensed money lender before applying for a loan.
4. The physical address of money lender not available
If a creditor is unable to provide you a physical address for verification or contact information, then you might need to reconsider your loan application. Probable scammers revel as less of information as possible so that it gets difficult to trace them or pursue any legal action for that matter!
5. The loan offer expires soon or is for limited time
Often loan offers that are for a limited time only or offers that need you to act soon sounds somewhat like a fraudulent offer! Licensed money lenders in Singapore provide loan offers and discounts from time to time so you don’t have to rush things up!

Keep in mind the above-mentioned pointers and be a bit careful as to whom do you borrow money from!

For more information on what types of loan can you avail or know more on the interest rates, book your appointment with a loan officer or money lender in Singapore today! Apply for a loan without any hassle!
October 31, 2019
How to get your Business Loan approved in Singapore
Unfortunately, too many companies find that the growth of their business is hampered by a weak working capital position or a lack of cash flow. But, you can find a money lender Singapore who will give you a commercial loan or a business loan. Business loans in Singapore are typically offered by banks and other financial institutions. Whether you need a business loan or commercial loan, you can find a money lender Singapore. Each bank or financial institution offers different types of loans with different interest rates and different types of requirements in order to qualify.
Money Lender Singapore
Many banks in Singapore offer unsecured business term loan, SME microloan, SME working capital loan or a trade financing loan. You can get financing for your company with no collateral required with an unsecured business term loan. Generally, these loans range from $30,000 to $40,000 per bank. You may even have up to 5 years to pay with installments.
An SME microloan is now an initiative by the Singapore government to ramp up productivity. With this loan, you can get up to $100,000. The SME working capital loan is another financing initiative by the Singapore government for getting money for your business. You can get up to $300,000 with a pro-rated interest with an SME working capital loan. Trade financing loans allow companies to buy material from their suppliers based on credit. With a letter of credit, you can purchase up to the bank’s limit.
Plus, you can invoice and receivables financing from a Singapore bank. This type of financing allows you to get up to 80% of the invoiced amount sooner. You won’t have to wait for the credit period.
Secure a property loan for money in Singapore. SME’s can put up their property for working capital to grow their business in Singapore. The interest rates for this type of loan are generally low. Lastly, you can also secure equipment financing from a bank in Singapore. Purchase or lease equipment with this type of financing. It helps unlock cash flow to keep the business running and expanding.
How to Find Business Loan Singapore
All you have to do to find business financing in Singapore is to go online. Almost 20 banks and financial institutions offer business loans in Singapore. Go to a web comparison site to compare the different types of loans, rates and various criteria offered by banks in Singapore. Many of these sites offer a free online loan assessment tool so that you can compare all of the offered business loans quickly.
Once you have this information, you can easily make an informed decision on which bank and loan best fit your individual needs. Many banks in Singapore have strong branding and sturdy balance sheets, which is a good foundation for a business loan. Some of the best banks in Singapore for a business loan include DMS Bank, United Overseas Bank, and Overseas Chinese Banking Corporation.
Money Lenders and Business Loan Singapore
It’s important to note that banks have tough regulations when it comes to lending money to a new, small or growing business. Banks typically require high credit scores, low debt-to-income ratio, and high cash flow. This can tie your hands. A money lender doesn’t have all those restrictions to give loans. Generally, it’s much easy to get approval for a loan from a money lender rather than a bank. Plus, a money lender does not add extra fees like a bank. Money lenders are in business to only make loans, unlike banks.
Money lenders generally have terms from 1 month to up to 3 or 4 years. Interest rates range from 7% to 13%, and closing costs range from 2% to 5%. And it’s easy to find a money lender in Singapore. Just go online and do a search for licensed money lenders.
May 27, 2019