In Singapore, you can get loans from many different types of financial problems to help you solve your financial problems. One such type will be authorised money lenders. Taking a loan out from authorised money lenders is different from taking a loan out from a bank, as the approval process is faster and less stringent.
When taking out a loan from a authorised money lender, there are also less requirements that you need to meet. They are also more forgiving if you have a bad credit score. However, there are many myths and misconceptions surrounding these loan companies, which paints them in a bad light. In this article, we will be debunking some of the most common myths and misconceptions about authorised money lenders.
Authorised money lenders charge high interest rates
Again, this is another common misconception about authorised money lenders. The interest rates charged by authorised money lenders are not that different as compared to banks. These loan companies are not allowed to charge interest rates that are higher than 4% per month.
The interest rates charged by authorised money lenders may be a little higher as compared to banks as interest rates are one of the few ways they are able to profit from, as it is illogical to take the risk of loaning money and only getting back the principal amount.
Loans from authorised money lenders are also available to individuals with bad credit score, which increases the risk for authorised money lenders. Many loans from authorised money lenders also do not require borrowers to mortgage their assets against the loan amount.
With all these factors in mind, it is reasonable for authorised money lenders to charge interest rates that are slightly higher than their counterparts in banks.
Authorised money lenders are loansharks
This is a common misconception that is untrue. Authorised money lenders in Singapore are required to abide to strict rules and regulations that are imposed by the government of Singapore. Authorised money lenders will also have to be licensed by the Singaporean government, and they must be registered in the Ministry of Law’s list of licensed money lenders.
There are many regulations that authorised money lenders need to abide to. For example, moneylenders are required to explain the terms of a loan to the borrower in a language that the latter understands and to provide the borrower with a copy of the loan contract.
Thus, authorised money lenders are trustworthy and licensed entities who wish to help borrowers solve their financial problems. One such authorised money lender is Soon Seng, which is one of the best licensed money lenders in Singapore as they have always prioritised being honest and transparent. They also ensure that their loans are fully transparent as they care about their clients and wish to help them solve their financial troubles.
Authorised money lenders only offer secured loans to borrowers
Another common misconception is that authorised money lenders offer secured loans. This is untrue as these loan companies offer a wide variety of secured and unsecured loans to their clients, such as personal loans, business loans and payday loans. These loans are easily accessible and quickly approved, so as to help them solve their financial problems.
Do not worry too much when taking out loans from authorised money lenders
When taking out a loan from an authorised money lender, you should not worry too much, as they are trustworthy business entities. They are governed by the Moneylenders Act, a statute that regulates moneylending, the designation and control of a credit bureau. This acts also regulates the collection, use and disclosure of borrower information and data, and related matters.
As such, authorised moneylenders operate under very strict guidelines, so you need not worry that they will commit criminal acts such as using extreme harassment tactics to get their money back. Unlike unlicensed money lenders, authorised money lenders are licensed and trustworthy entities that are genuinely interested to help you solve your financial troubles.
One such authorised money lender is Soon Seng, which is one of the best licensed money lender in Singapore as it regards honesty and transparency as their top priorities, which makes it trustworthy. Soon Seng operates under a strict code of conduct and believes in building long term relationships with their clients that will help to foster a sense of trust. Soon Seng is always interested to help their clients solve their monetary problems and ease their financial burdens.
Contact us via email at [email protected] or via phone at 6292 5693 to discuss how we can help you solve your financial troubles!