{"id":1247,"date":"2024-07-30T15:51:09","date_gmt":"2024-07-30T07:51:09","guid":{"rendered":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/?p=1247"},"modified":"2024-07-30T17:04:35","modified_gmt":"2024-07-30T09:04:35","slug":"authorised-money-lender-singapore","status":"publish","type":"post","link":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/licensed-money-lender-guide\/","title":{"rendered":"Licensed Money Lender Guide: Borrowing and Settling Loans"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_88 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<label for=\"ez-toc-cssicon-toggle-item-6ab042364c6a0\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6ab042364c6a0\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/licensed-money-lender-guide\/#What_is_a_Licensed_Money_Lender\" >What is a Licensed Money Lender?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/licensed-money-lender-guide\/#Advantages_of_Borrowing_from_Licensed_Money_Lenders_vs_Banks\" >Advantages of Borrowing from Licensed Money Lenders vs Banks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/licensed-money-lender-guide\/#How_to_Choose_a_Licensed_Money_Lender_in_Singapore\" >How to Choose a Licensed Money Lender in Singapore<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/licensed-money-lender-guide\/#Application_Process\" >Application Process<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/licensed-money-lender-guide\/#Interest_Rates_and_Fees\" >Interest Rates and Fees<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/licensed-money-lender-guide\/#Good_to_Know\" >Good to Know:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/licensed-money-lender-guide\/#Prohibited_Practices_by_Licensed_Money_Lenders\" >Prohibited Practices by Licensed Money Lenders<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/licensed-money-lender-guide\/#Other_Prohibited_Practices_for_Licensed_Moneylenders\" >Other Prohibited Practices for Licensed Moneylenders<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/licensed-money-lender-guide\/#Safety_Tips_for_Borrowers\" >Safety Tips for Borrowers<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/licensed-money-lender-guide\/#Closing\" >Closing<\/a><\/li><\/ul><\/nav><\/div>\n\n<p class=\"wp-block-paragraph\">Are you among the many Singaporeans feeling the financial strain? Despite 1.5 million eligible Singaporeans receiving <a href=\"https:\/\/www.straitstimes.com\/singapore\/15-million-singaporeans-to-get-up-to-850-in-august-to-cope-with-rising-costs\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">$450 or $850<\/a> in August for daily expenses, many still find it insufficient.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A Business Times survey revealed that six in 10 Singaporeans struggle with increasing costs, leading them to seek additional financial support from licensed money lenders.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Understanding the benefits of borrowing from licensed money lenders can protect you from scams and ensure transparent loan terms.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This guide offers an overview of borrowing and settling loans safely with licensed money lenders in Singapore.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_a_Licensed_Money_Lender\"><\/span><strong>What is a Licensed Money Lender?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A moneylender offers various financial services, including payday loans, personal loans, business loans, etc. Borrowers approach money lenders for a particular loan amount, especially during financial emergencies.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Is it safe to borrow from licensed money lenders in Singapore?&nbsp;<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Licensed money lenders in Singapore are authorized by the Ministry of Law to provide loans under strict regulations to ensure transparency and fairness. The <a href=\"https:\/\/sso.agc.gov.sg\/Act\/MA2008\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Moneylenders Act<\/a> governs their operations, outlining rules and responsibilities to maintain high industry standards and protect borrowers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Ministry of Law enforces a <a href=\"https:\/\/rom.mlaw.gov.sg\/information-for-moneylenders\/relevant-laws-and-regulations\/\" data-type=\"link\" data-id=\"https:\/\/rom.mlaw.gov.sg\/information-for-moneylenders\/relevant-laws-and-regulations\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">regulatory framework<\/a>, setting maximum interest rates, allowable fees, and strict penalties for malpractices. This ensures borrowers can trust licensed lenders for fair and transparent loan terms.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Borrowing from licensed money lenders is crucial for financial security. Unlike an illegal money lender who may engage in unethical practices, a licensed lender operates with integrity under the Moneylenders Act, protecting borrowers from excessive interest rates and unfair loan terms for a safer borrowing experience.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_of_Borrowing_from_Licensed_Money_Lenders_vs_Banks\"><\/span><strong>Advantages of Borrowing from Licensed Money Lenders vs Banks<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When deciding between borrowing from licensed money lenders or banks, it&#8217;s important to consider various factors. Here&#8217;s a comparison to help you understand the differences:<\/p>\n\n\n\n<figure class=\"wp-block-table highlight-row\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Criteria<\/strong><\/td><td><strong>Licensed Money Lenders<\/strong><\/td><td><strong>Banks<\/strong><\/td><\/tr><tr><td><strong>Processing Time<\/strong><\/td><td>Faster approval and disbursement; often within a day<\/td><td>Longer processing time; can take several days to weeks<\/td><\/tr><tr><td><strong>Flexibility in Loan Amounts and Terms<\/strong><\/td><td>More flexible with loan amounts and repayment terms<\/td><td>Stricter criteria and less flexibility in terms and amounts<\/td><\/tr><tr><td><strong>Accessibility for Low-Credit Borrowers<\/strong><\/td><td>More accessible for individuals with low or <a href=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/credit-score-singapore\/\" data-wpil-monitor-id=\"2\">poor credit scores<\/a><\/td><td>Higher credit score requirements, making it harder for low-credit borrowers<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Licensed money lenders typically offer faster processing times, greater flexibility in loan terms, and are more accessible to individuals with lower credit scores compared to banks. This makes them a viable option for borrowers who need quick access to funds or who may not qualify for bank loans due to credit score limitations.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Choose_a_Licensed_Money_Lender_in_Singapore\"><\/span><strong>How to Choose a Licensed Money Lender in Singapore<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Selecting a licensed money lender in Singapore is essential for ensuring a safe and transparent borrowing experience. Here are key steps to help you make an informed choice:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>1. Verify the lender&#8217;s license via the Ministry of Law&#8217;s list<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Always check the Ministry of Law\u2019s official list to confirm that the lender is licensed and authorized to operate. This ensures legitimacy and compliance with regulations.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Through the Ministry of Law, the Singapore government, has ensured that Raffles Credit and other financial institutions follow specific rules before lending loans to Singaporeans.<br>The government granted licenses to these money lenders in Singapore. You can find the list of licensed moneylenders <a href=\"https:\/\/rom.mlaw.gov.sg\/files\/ML%20Lists\/ML%20List_1July2020.pdf\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">here<\/a> for more information.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>2. Check for physical office and legitimate contact details<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Ensure the lender has a physical office and valid contact information. This adds a layer of credibility and provides a point of contact for any issues.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>3. Read customer reviews and feedback<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Look at customer reviews on platforms like Google Reviews and forums to gauge the lender\u2019s reputation and customer satisfaction. Positive feedback indicates reliability and good service.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>4. Compare interest rates, fees, and repayment schedules<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Different lenders offer varying terms. Compare these aspects to find the most affordable and manageable loan options. Note that a legal money lender can only charge up to 4% interest rate per month.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>5. Ensure clear and transparent loan terms<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Review the loan agreement carefully to understand all terms and conditions. Transparency is key to avoiding hidden charges and understanding your obligations.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>6. Avoid lenders who solicit through unsolicited messages<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Be cautious of lenders who reach out through unsolicited calls or messages. Reputable lenders do not engage in such practices and adhere to ethical marketing standards.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Legal lenders can only advertise through these channels:<\/p>\n\n\n<ul class=\"bullet\">\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Business or consider directories<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Moneylender\u2019s official website<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Within or on the exterior of the moneylender\u2019s business premises<\/span><\/li>\n<\/ul>\n\n\n<figure class=\"wp-block-image size-large caption-align-center\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"682\" src=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/wp-content\/uploads\/2022\/05\/man-borrowing-money-from-moneylender-1024x682.jpg\" alt=\"man borrowing money from moneylender\" class=\"wp-image-15699\" srcset=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/wp-content\/uploads\/2022\/05\/man-borrowing-money-from-moneylender-1024x682.jpg 1024w, https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/wp-content\/uploads\/2022\/05\/man-borrowing-money-from-moneylender-300x200.jpg 300w, https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/wp-content\/uploads\/2022\/05\/man-borrowing-money-from-moneylender-768x512.jpg 768w, https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/wp-content\/uploads\/2022\/05\/man-borrowing-money-from-moneylender.jpg 1280w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Application_Process\"><\/span><strong>Application Process<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s how a typical application may go:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><strong>1. Checking for Eligibility<\/strong><\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The amount of loan you are eligible for depends on your annual income. This loan cap applies to Singapore citizens, permanent residents, and foreigners living here.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For a clearer picture, check out this table:<\/p>\n\n\n<figure class=\"wp-block-table highlight-row\">\n<table>\n<tbody>\n<tr>\n<td>\n<p><b>Annual Income of Borrower<\/b><\/p>\n<\/td>\n<td>\n<p><b>Singapore Resident \/ Permanent Resident<\/b><\/p>\n<\/td>\n<td>\n<p><b>Foreigners<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Below S$10,000<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">S$3,000<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">S$500<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>S$10,000 to less than S$20,000<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">S$3,000<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">S$3,000<\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>S$20,000 and above<\/b><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">6x the monthly income<\/span><\/p>\n<\/td>\n<td>\n<p><span style=\"font-weight: 400\">6x the monthly income<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n\n\n<h3 class=\"wp-block-heading\"><strong>2. Preparing the necessary documents<\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Before going to the money lender\u2019s office, prepare all the necessary documents required. These include:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Eligibility:&nbsp;<\/strong><\/p>\n\n\n<ul class=\"bullet\">\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">At least 21 years old\u00a0<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Proof of income\/employment (payslips)<\/span>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">For Singaporean\/PR residents: You must have regular employment or a source of income above $2,000 per month<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">For Foreigners\/Expats working in Singapore: You must have regular employment or a source of income above $3,000 per month<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n<p class=\"wp-block-paragraph\"><strong>Requirements:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>For Singaporean \/ Permanent Resident Identity card \/ NRIC<\/strong><\/p>\n\n\n<ul class=\"bullet\">\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Proof of residences such as a recent bill or letter addressed to you (only applicable if you do not own the residence)<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Tenancy agreement (only applicable if you are renting a flat)<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Recent 3 months payslip and employment letter if your current employment is less than 6 months<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Know your SingPass (to log into CPF, HDB, IRAS website)<\/span><\/li>\n<\/ul>\n\n\n<p class=\"wp-block-paragraph\"><strong>For foreigners<\/strong><\/p>\n\n\n<ul class=\"bullet\">\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">A valid work permit \/ S Pass \/ Employment Pass<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Passport<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Proof of employment (staff pass or company pass)<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Recent 3-month payslips &amp; employment letter<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Proof of residence such as a tenancy agreement, recent bill or letter addressed to you<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Latest bank statement of account to which yearly or monthly salary is credited<\/span><\/li>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Singpass (to download IRAS NOA)<\/span><\/li>\n<\/ul>\n\n\n<h3 class=\"wp-block-heading\"><strong><strong>3. Applying for the desired loan<\/strong><\/strong><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Below are the usual steps in applying for an unsecured loan (e.g. personal loans):<\/p>\n\n\n<p><strong>1. Call or Apply Online: <\/strong>Apply from the comfort of your home.<br \/><strong>2. Visit the Office For In-Person Consultation: <\/strong>Upon confirmation, you will be asked to come to the office to customize your loan plan.<br \/><strong>3. Receive Your Money on the Same Day: <\/strong>Get your cash as soon as the loan agreement has been signed.<!-- \/wp:post-content --><!-- wp:list-item --><\/p>\n<p><!-- \/wp:list-item --><!-- wp:list-item --><\/p>\n<p><!-- wp:heading --><\/p>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Interest_Rates_and_Fees\"><\/span><strong>Interest Rates and Fees<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><!-- \/wp:heading --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p>Understanding the interest rates and fees associated with licensed money lenders in Singapore is crucial for making informed borrowing decisions. Here&#8217;s what you need to know:<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<ul class=\"bullet\">\n<li style=\"font-weight: 400;\"><b>Maximum Interest Rate:<\/b><span style=\"font-weight: 400;\"> Licensed money lenders can charge a maximum interest rate of 4% per month, regardless of the borrower&#8217;s income or whether the loan is unsecured or secured.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Processing Fee: <\/b><span style=\"font-weight: 400;\">Money lenders can impose a processing fee of up to 10% of the loan amount when the loan is granted.<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Late Payment Fees and Interest: <\/b><span style=\"font-weight: 400;\">If a borrower fails to repay the loan on time, the maximum rate of late interest that can be charged is 4% per month for each month the loan is repaid late. Additionally, a late repayment fee of up to $60 can be imposed for each month of late repayment.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><strong>Legal Costs:<\/strong> Legal money lenders can also charge court-ordered legal costs for a successful moneylender&#8217;s claim to recover the loan.<\/span><\/li>\n<\/ul>\n<p><!-- wp:heading {\"level\":3} --><\/p>\n<h3 class=\"wp-block-heading\"><strong>Consider this illustration:<\/strong><\/h3>\n<p><!-- \/wp:heading --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p>Mr. Parl is considering taking out a personal loan of $1,000 to cover some unexpected expenses. He uses a <a href=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/\">loan calculator<\/a> to determine how much he can afford to pay monthly and what the total cost of the loan will be over a 12-month period. Here\u2019s what the breakdown looks like based on his loan terms:<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:image {\"id\":19097,\"sizeSlug\":\"full\",\"linkDestination\":\"none\",\"align\":\"center\"} --><\/p>\n<figure class=\"wp-block-image aligncenter size-full\"><img decoding=\"async\" width=\"932\" height=\"576\" class=\"wp-image-19097\" src=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/wp-content\/uploads\/2020\/09\/image1.webp\" alt=\"loan calculator\" srcset=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/wp-content\/uploads\/2020\/09\/image1.webp 932w, https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/wp-content\/uploads\/2020\/09\/image1-300x185.webp 300w, https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/wp-content\/uploads\/2020\/09\/image1-768x475.webp 768w\" sizes=\"(max-width: 932px) 100vw, 932px\" \/><\/figure>\n<p><!-- \/wp:image --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p>In summary, by borrowing S$1,000 and repaying it over 12 months, John\u2019s monthly payments will be S$106.06, and he will pay a total of S$272.72 in interest, making his total repayment amount S$1,272.72.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:heading --><\/p>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Good_to_Know\"><\/span><strong>Good to Know:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><!-- \/wp:heading --><\/p>\n<p><!-- wp:heading --><\/p>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Prohibited_Practices_by_Licensed_Money_Lenders\"><\/span><strong>Prohibited Practices by Licensed Money Lenders<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><!-- \/wp:heading --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p>Unlicensed or unauthorized money lenders are also called <em>Ah Long<\/em>. They work outside the rules and regulations of the government. In many cases, they would take advantage of the difficult situation of the people by making the loan interest rates so high. Also, they would harass and pressure loanees into paying off the money they borrowed.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p>How to spot a loan scam:<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<ul class=\"bullet\">\n<li style=\"font-weight: 400;\"><b>You received unsolicited offers coming from various messaging platforms.<\/b><span style=\"font-weight: 400;\"> In Singapore, a licensed lender can only advertise in three channels, namely in print or online media, websites owned by the creditor, and ads within or on the exterior of its business premise.<\/span><\/li>\n<li><b>The loan offer is incomplete. <\/b><span style=\"font-weight: 400;\">According to the money lenders Act, all lenders must provide complete terms. The terms must include the final cost of the principal loan plus the interest to be included in a legal loan contract.<\/span><\/li>\n<li><b>The creditor does not have a physical address or contact details<\/b><span style=\"font-weight: 400;\">. Loan scammers do not want you to know their address, so it would be impossible for you to track them or file a complaint against them. When a creditor does not give you its physical address, phone number, or email address, there is a high chance that it is not a legitimate office.<\/span><\/li>\n<li><b>The creditor requires you to give an up-front payment, or they are asking for \u201chigh processing fees.\u201d<\/b><span style=\"font-weight: 400;\"> A creditor asking for a fee before the approval of the loan application is likely a scam. <\/span><\/li>\n<li><b>The creditor asks for a gift card as a form of payment. Similar to cash, gift cards are impossible to trace. <\/b><span style=\"font-weight: 400;\">Hence, it is a favorite currency among scammers. If a creditor asks you to pay through a gift card, try finding another money lender who can give you a loan.<\/span><\/li>\n<li><b>The website of the moneylender is not secure.<\/b><span style=\"font-weight: 400;\"> One way to check this is to find the padlock icon on the left side behind the URL. If you feel that the website is not secure, do not hesitate to cut your transaction with the creditor and stop using their website. Do not risk giving your details to questionable people.<\/span><\/li>\n<\/ul>\n<p><!-- wp:heading --><\/p>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Other_Prohibited_Practices_for_Licensed_Moneylenders\"><\/span><strong>Other Prohibited Practices for Licensed Moneylenders<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><!-- \/wp:heading --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p>The unscrupulous practices of loan sharks have skewed an unfair image and impression to licensed money lenders. Thus, the government has put regulations on the money lending practice. To inform you better, here are unacceptable acts that licensed money lenders are not allowed to do:<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<ul class=\"bullet\">\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Ask for your Singpass details, including passwords<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Any form of abusive language, threats, or harassment<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Keep on hold essential documents like your NRIC, IDs, Bankbooks, or ATM cards<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Ask you to sign any blank document<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Approve your loan via email or SMS<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Grant the loan without explaining in detail the terms and conditions<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Put on hold a part of the principal amount for whatever reason<\/span><\/li>\n<\/ul>\n<p><!-- wp:heading --><\/p>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Safety_Tips_for_Borrowers\"><\/span><strong>Safety Tips for Borrowers<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><!-- \/wp:heading --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p>To ensure a secure and positive borrowing experience, follow these safety tips when dealing with licensed money lenders:<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><strong><b>1. Verify the Lender\u2019s License:<\/b><span style=\"font-weight: 400;\"> Always confirm that the money lender is licensed by checking the <\/span><a href=\"https:\/\/rom.mlaw.gov.sg\/information-for-borrowers\/list-of-licensed-moneylenders-in-singapore\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">Ministry of Law\u2019s official list of licensed money lenders<\/span><\/a><span style=\"font-weight: 400;\">.<br \/><strong>2. Read and Understand the Loan Agreement:<\/strong> Before signing any documents, thoroughly read and understand all terms and conditions. Ensure that all fees, interest rates, and repayment schedules are clearly stated.<br \/><b>3. Avoid Unsolicited Offers:<\/b> Be cautious of money lenders who approach you with unsolicited loan offers via phone, email, or text messages. Licensed money lenders do not solicit business in this manner.<br \/><b>4. Check Reviews and Feedback:<\/b> Look for reviews and feedback from other borrowers on platforms like Google Reviews or financial forums to gauge the lender\u2019s reputation and customer service.<br \/><strong>5. Keep Documentation: <\/strong>Maintain a record of all loan documents, receipts, and communication with the money lender. This can help resolve any disputes that may arise.<br \/><\/span><\/strong><span style=\"font-weight: 400;\"><strong><b>6. Report Suspicious Activities: <\/b><\/strong>Should you encounter any of these instances, report to the Ministry of Law\u2019s Registry of Moneylenders through their website or complain through 1800-2255-529. For harassment, you can also report the incident to the police as matters of harassment should be taken out seriously by the police force.<br \/><strong>7.<b>Do Not Borrow More Than You Can Repay: <\/b><\/strong>Assess your financial situation carefully and only borrow an amount that you can comfortably repay within the agreed timeframe to avoid falling into debt.<br \/><strong>8.<\/strong> <strong><b>Understand Your Rights: <\/b><\/strong>Familiarize yourself with your rights as a borrower under the Moneylenders Act and the Consumer Protection Act to ensure you are not subjected to unfair practices.<\/span><\/p>\n<p><!-- wp:heading --><\/p>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Closing\"><\/span><strong>Closing<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><!-- \/wp:heading --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p>Borrowing from licensed money lenders in Singapore can be a safe and viable financial solution when done correctly. By understanding the regulatory framework, choosing reputable lenders, and managing your loans responsibly, you can navigate the borrowing process with confidence.<\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<p><!-- wp:paragraph --><\/p>\n<p><strong>Key takeaways:<\/strong><\/p>\n<p><!-- \/wp:paragraph --><\/p>\n<ul class=\"bullet\">\n<li><span style=\"font-weight: 400;\">Always check that the money lender is licensed by the Ministry of Law to ensure safe and legal borrowing.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Thoroughly read and understand all loan terms, including the regulatory limits set by the Ministry of Law, such as a maximum interest rate of 4% per month and processing fees capped at 10% of the principal loan amount.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">If you face financial difficulties, communicate with your lender to explore options like loan restructuring or financial assistance schemes.<\/span><\/li>\n<\/ul>\n<p><!-- wp:paragraph --><\/p>\n<p>Explore safe and transparent loan options tailored to your needs with <a href=\"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/\">Raffles Credit<\/a>. We offer affordable interest rates and flexible repayment terms to suit your financial situation. Request a quote today.<\/p>\n<p><!-- \/wp:paragraph --><\/p>","protected":false},"excerpt":{"rendered":"<p>Do you suddenly need urgent cash but don\u2019t qualify for a bank loan? Here\u2019s a complete guide on finding a licensed money lender in Singapore and avoiding loan scams.<\/p>\n","protected":false},"author":1,"featured_media":15698,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_seopress_titles_title":"Licensed Money Lender Guide: Borrowing and Settling Loans Safely","_seopress_titles_desc":"Learn how to borrow and settle loans safely with licensed money lenders in Singapore. Ensure financial security with our comprehensive licensed money lender guide.","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"none","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"both","_seopress_redirections_param":"","_seopress_redirections_type":301,"_seopress_analysis_target_kw":"licensed money lender guide","_editorskit_title_hidden":false,"_editorskit_reading_time":9,"_editorskit_is_block_options_detached":false,"_editorskit_block_options_position":"{}","site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"default","adv-header-id-meta":"","stick-header-meta":"default","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"set","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[15],"tags":[54,36],"class_list":["post-1247","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-moneylender-category","tag-licensed-money-lender","tag-unlicensed-money-lender"],"_links":{"self":[{"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/wp-json\/wp\/v2\/posts\/1247","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/wp-json\/wp\/v2\/comments?post=1247"}],"version-history":[{"count":0,"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/wp-json\/wp\/v2\/posts\/1247\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/wp-json\/wp\/v2\/media\/15698"}],"wp:attachment":[{"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/wp-json\/wp\/v2\/media?parent=1247"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/wp-json\/wp\/v2\/categories?post=1247"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/glutenfreepleasure.com\/__proxy_domain\/www.rafflescredit.com.sg\/wp-json\/wp\/v2\/tags?post=1247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}