Finding Licensed Singapore Money Lenders
Singapore has strict rules when it comes to lending and borrowing. For a company to become a Singapore Money Lenders, they are required to have a license. This system exists to protect borrowers and to ensure that everyone is treated fairly. A licensed money lender must explain the terms of the loan to you clearly, so you know how much you are going to have to repay and what will happen if you are late when making payment.
The growth of the web means that there are more and more loan sharks operating in Singapore. These loan sharks charge high interest rates. They may lend money to people that otherwise struggle to get credit, but they will charge huge fees for the privilege and often trap those people in a debt situation that is hard to get out of.
Know What You Can Borrow
Licensed moneylenders in Singapore set strict limits on the amount that you can borrow. For an unsecured loan, the amount is based on your personal income. Someone earning less than $20,000 a year can borrow up to $3,000. Someone earning between $20,000 and $30,000 a year can borrow up to two months of their income, and someone earning between $30,000 and $120,000 can borrow up to four months of their income. For people who are earning more than $120,000 there is no limit to the amount that they can borrow.
Lenders that allow people to borrow more than that could be loan sharks.
You can find directories of licensed money lenders online, and these directories are vetted to ensure that the people in them are legitimate companies. A licensed money lender may charge up-front service fees, but those fees will not be more than ten percent of the amount that you are borrowing from them.