The process of finding credible money lending firms is one of the hardest nuts to crack while trying to source funds. In Singapore alone, there is an estimate of about one thousand loan sharks waiting to deceive borrowers while there are only about 160 accredited lending companies. Now, this is the more reason people prefer transacting with banks. But not to worry, I’ll be pointing out some nuggets with which you can point out responsible money lenders from the rest. With these, you can escape the traps of loan sharks.
- Check out for licenses legalizing the company’s incorporation
A reputable money lender will have the necessary permits and certifications to operate. Check out for listings of licensed money lending institutions in government directory. The companies that make the list are those that are certified by the Ministry of Law. This is a major difference between responsible and irresponsible money lenders.
- Online presence and the authenticity of the company’s website
The company’s website is another important pointer. Most loan sharks do not have websites at all, and others that do, do not always have solid information on their pages. Proper scrutiny of the web page will confirm or dispel your doubts. Check out for reviews too. A responsible money lending firm will have realistic reviews from satisfied borrowers.
- Responsible money lender s will offer realistic rates and terms
Notwithstanding the fact that these licensed money lenders are trying to stay competitive and within the government’s specified lending rate limit, do not expect ridiculously low rates. This is another way to know responsible money lenders. They have flexible terms and will propose terms that will favor both parties but once they begin to try and buy you over with ridiculously low rates, or are asking that up to some amount of money before your deal is sealed, then you are onto the wrong ones. Please flee for dear life.
- Physical offices
Any money lender that requests that you complete all of your application processes online and that there is no need for physical contacts between you both is not a responsible money lender. It is not professional and so don’t indulge in such transactions. Go to your money lender’s office to confirm the company’s authenticity.
With the nuggets above, you should be able to make wise decisions with your choice of money lenders. Stay careful and resist the temptation not to double-check.