Why get a Personal Loan from the Licensed Moneylenders in Chinatown?

Discovering Licensed Moneylenders in Chinatown Against Loan Sharks

Different lenders pop out as the lending industry grows. However, the probability of encountering fraud lenders or the so-called ‘loan sharks’ is high.

Singapore regulated the lending industry through the Moneylenders Act, strictly followed by all lenders.

The purpose of regulating the said industry is to ensure that certain moneylender does not abuse people with high interest rates and other unnecessary charges.

It is better to be wiser and smarter in choosing a licensed moneylender because they will keep your finances and expenses manageable.

Here’s why.

Complete and Detailed Contract

A Note of Contract is an important document in your personal loan application. It serves as your protection and must be kept with the utmost care.

When you’re approved, you have to sign a contract. But could you read it first with full comprehension? Ask questions if something’s unclear to you like some confusing statements or clarifying the charges.

Chinatown money lenders elaborates on all the details written in the contract.

Anything that you have agreed upon your loan, including the total amount of loan, interest rate, penalty fees, and other fees, is in the contract.

While loan sharks do provide unclear contracts or sometimes ask you to sign an incomplete form, do not accept their request.

Borrower’s Note of Contract

You must have your own copy of the Note of Contract.

Like the licensed moneylenders in Chinatown, every trusted lender is expected to provide a copy to its borrowers.

You must check if it is duly notarized and signed by both the lender and the borrower. 

You must also read it if it is similar to the original contract you signed.

Contrary to this are loan sharks. They don’t provide a contract copy to their borrowers. They reason out for possible delays. But in reality, they do not provide. 

Remember, the Note of Contract is your security for the personal loan you have applied for.

Always ask for your copy. 

Less Stringent Document

Applying for a payday loan nowadays is quite easy. There’s no need to fulfil the long list of requirements.

You have to present the mandatory requirements.

Licensed moneylenders in Chinatown require you a personal identification card, proof of income and SingPass. 

These documents are very accessible. You bring it with you every day. Complete the requirements within hours before you proceed to the lending office.

On the other hand, loan sharks say that their loan process is easy and only requires a single document. Don’t be fooled by them.

Remember, licensed money lending institutions need to check and investigate the client’s background. This is to assess the client’s credibility if they are trustworthy and capable of paying the loan.

Processing Fee

For every loan application, a processing fee is required for the loan. But this does not mean you have to pay it upfront. 

Here in Chinatown money lenders can give you some options. Either you pay the processing fee in instalment or deducted the loan amount.

Weigh your options before you decide. 

What loan shark’s doing is they will ask you for an upfront payment of the processing fee. How will you pay the fee when you’re there to borrow money in the first place? 

Usually, unlicensed moneylenders do charge an enormous fee. 

Keep in mind that the permitted maximum amount of fee is 10% of the principal loan amount.

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