Many of them often get confused between a loan shark, legal loaner and a registered moneylender. Before clearing out your doubt, you must understand that there are two ways a lender can give you money. Let us know all of these ways in detail.
- Illegal moneylender
This type of moneylenders is those individuals or group of people who are capable of providing monetary fund illegally. But how can someone decide whether a lender is illegal?
There is more than one aspect that determines the type of loaner. Although, one can easily rectify the illegal one by their source of income. Yes, if you are borrowing money from those loaners who have earned it by selling drugs and other addictive materials, human trafficking, murder innocents for money, and other such activities, then they can be termed as bias and unlawful.
Some of the other aspects are not following the acts passed by Singapore’s ruling government, increasing the rate of interest according to their choice and not considering the eligibility criteria. Of course, it has never been a great idea to ask for loans from such people.
- Legal moneylender
As the name suggests, they are completely different to that of the above-mentioned type. A legal lender is approved by the moneylender to give a guide and reliable loaning facility only. In short and simple terms, a legal money lender is a person who is capable of lending money to other loan seekers.
There must be something to identify their legality. To ensure this, the government official in Singapore provides a very unique and un similar license number to the mortgager. It helps the loanee to easily ensure whether they are legal or not.
Yes, it is absolutely a good idea to borrow money from a legal one rather than getting crushed by the increased debt charge of a bank loan department or a loan shark.
But do you know there is another type of moneylender who can also give you monetary funds?
Who is a registered moneylender in Singapore?
There is not much difference between a licensed lender and the registered lender. They both mean the same but not 100 per cent. This means that a licensed one is the parent of a registered moneylender or a registered mortgager is the subtype of the licensed moneylender.
Moreover, they give the same service of providing loans to others, but there is a twist here.
According to public provisions with regards to the category of moneylender present throughout Singapore, the ministry of laws holds a list of all the licensed moneylenders in Singapore.
But only those who are capable of completing the rules drafted by the reformers for a lifetime are registered on this list. Those legal loaners who are willing to get their names listed on such sites only those moneylenders are considered.
If you are looking at the list of registered moneylenders in Singapore, then you must know how the right way of reading the table data before borrowing money from them.
Basic guides to remember while reading the list of registered moneylenders
- Business name
The first column from where the important data starts is the business name. Currently, most of the moneylenders are terming their loan providing capabilities into a private business organisation.
However, the important aspect you must notice inside the business name column is the type of business. Normally, there are two types of companies. The first one is a sole business start-up in which the owner is the only investor who raises the capital without any employee or partner.
The second types are the most common type named as a partnership company. It can be said that this enterprise is run by the partnership of the owner and other members. Apart from this, you must look for the LTD after the moneylender’s business name.
An LTD sign indicates that the business is a private limited company. If you demand a high amount of loans from such originations, then the chance for approval is considerably more.
- Business address
It does not matter how many times modernisation has affected our way to do work. When it comes to financial terms, the talk is not limited to a computer screen.
If you are one of those who still prefer to visit a loaner place because you can’t bear the risk, then the business address is the solution. The ministry of law has kept an accurate record of business address with regards to each moneylender who is registered on the list.
You must have a look at this data and visit the mortgager you have selected personally to know his or her policy. And yes, there are many other details like pin code number, etc. This method can prove an easy way to get personal loan in Singapore.
- License Number
A lenders experience is the key factor that determines whether you are getting approval for your loan or not. All thanks to the ministry of law in Singapore, which helps you get the good, reliable and most primary, accurate data.
Usually, an original and unique license number consists of 6 to 7 digits or, in rare case scenario, even 8. The last four digits from the right-hand side speak about the year of registration.
By this, a loan seeker can get to know the year of registration, in short, the experience of the moneylender
- Other aspects
You can also get the URL/link of the official website published by the registered moneylender. One can easily demand loans from their websites and link their bank account to transfer the borrowed money directly to their savings account.
How can we forget about the separate category of moneylenders at the bottom of the list? Sometimes a mortgager fails to keep up with the rules and laws.
However, then they are termed as a partially legal lender and displayed their name at the bottom of the list with a star (*) mark.
Their license number gets suspended for a certain period.