Acquiring cash in times of need can be tough but the good news is, there are already licensed money lenders out there that can be of assistance to the general public anytime help is called for. Although these types of financial institutions are legitimate, a lot of people still confuse licensed moneylenders with loan sharks.
Money lending has had a negative reputation over the years due to the illegal lenders that flocked the industry way before the credible ones are able to establish themselves. Although debts are risky, it’s also inevitable so the best way to get funding is to be informed. Contrary to belief, securing a loan is actually practical and safe so long as you transact with only licensed moneylenders.
Licensed money lending companies are financial institutions that provide various loan types to people—from personal loans to business loans and many more in between. Compared to banks, getting a loan via a licensed money lender is actually easier and faster. The upsurge in demand for secured loans made it possible for licensed moneylenders to propagate in order to provide a safer, more accessible, and legal lending service to the masses.
Getting a personal loan can seem complicated but it’s actually not. The only reason why money lending has become quite infamous among Singaporeans is because of the myths that have been circling the industry. Businesses that are legitimate will not hesitate to provide you with the necessary documents that will support their legality. As a borrower, you must be wise and wary when taking out a loan.
In Singapore, there are still loan shark activities that are taking place despite the presence of licensed moneylenders. In this article, we are going to lay the facts and fictions about licensed money lending entities:
FICTION: The interest rates of licensed moneylenders are just the same as the illegal ones—if not even higher
One of the myths about licensed moneylenders is that the interest rates are sky-high. People tend to get easily intimidated by legal companies that have formal loan application processes so they tend to approach the individual ones who offer a less formal, unsecured loan. Truth is, unlike the unlicensed ones, licensed companies in Singapore actually follow a strict ceiling rate for the interests that they charge. In fact, UK Credit’s interest rate is capped at 4% even alongside our flexible repayment terms that can be stretched up to 12 months. With this, licensed moneylenders are able to charge lower interest rates than banks.
Interest rate is computed fairly when you loan from a licensed moneylender in Singapore. Both secured loan and unsecured loan have reasonable interest rates unlike when you borrow from an illegal lender.
FACT: The loan application process of a licensed money lender is actually very smooth and easy
The digital age made it possible for people to easily apply for cash loans whenever needed. At UK Credit, you can get the projected cost of your desired amount to be borrowed through our Loan Calculator service even before officially applying for a loan. This way, you can thoroughly budget and plan your finances first before securing a loan with us. Over-the-top expensive loans are not our cup of tea; we believe that everyone should be able to get safe funding without breaking the bank.
The approval of a loan from licensed moneylenders in Singapore is also easier and faster compared to bank loans since the requirements are lesser. With UK Credit, you can apply for a loan online through our website and get approved in just 30 minutes after essential documents have been submitted. Hassle-free, right?
FICTION: Moneylenders only offer secured loans
Secured loans are loans that rely on assets and collaterals in order to get approved. These kinds of financial services are not the only options anymore since legitimate moneylenders are now able to offer loans to borrowers without having to require an asset as a collateral. It will be indicated in the contract the terms of a loan so borrowing from a regulated money lending company is actually safe. For banks and some money lending institutions, the traditional way of getting a loan with a maximum amount would often require a high income per month or some valuable assets. But with us, these are not necessary as we provide quick cash loans for people who need it so they can easily apply anytime, anywhere.
Unsecured loans for whatever purpose are offered by legitimate moneylenders because we understand that it is hard to be financially equipped at all times. If you need cash for a new car, apartment, business, or even just to clear out your other debts, we will gladly assist you in getting your personal loan approved.
FACT: Licensed moneylenders in Singapore are transparent
Worried about hidden charges? With licensed moneylenders, you can get a loan without the fear of getting charged with hidden fees. Unlike loan sharks, licensed money lenders will be transparent with you every step of the way. A contract will be drafted and provided before and after getting a loan approved; this will indicate all necessary details such as the loan amount, documents, income, repayment terms, interest per month, and other important information about the loan.
FICTION: A bad credit score will get you disapproved
A myth that has been holding people back from borrowing is that a not-so-good credit standing will greatly affect their loan application. Compared to banks and most lending companies, some licensed moneylenders in Singapore like UK Credit actually have fewer tick boxes to check when reviewing documents that borrowers provide them. Most legal moneylenders are even considerate when it comes to approving loans. With us, bad credit score and low income are not major factors in considering your loan’s approval.
FACT: Not all money lenders in Singapore are loan sharks
Ah Longs or illegal loan sharks are rampant in the money-lending industry of Singapore so the myth about loan sharks lurking around is actually true—but not entirely. With due diligence and lots of fact-checking with the lending entity you are transacting with, you will be able to apply for a loan without getting scammed. A licensed moneylender will provide you proof of legitimacy such as business registration, license number, or any other document that will prove their compliance to the Ministry of Law.
Since licensed moneylenders are regulated by an official governing body, borrowers are protected from any kind of threat and harassment. Collateral is not even a requirement when applying for a specified loan amount so everyone is financially capable of borrowing for their desired cash loan whenever necessary. Licensed moneylenders in Singapore are confident with their legitimacy because they are strictly regulated so any type of violation can be reported to the Ministry of Law and Registry of Moneylenders to ensure the safety of both parties.
FICTION: Loans are only for emergencies
Some people think that licensed moneylenders only approve loans that are for emergency purposes; this is far from the truth. UK Credit has various loan types that you can apply for. A personal loan has a friendly application process that won’t stray away aspiring borrowers from applying. Whether it’s for a new car, a house renovation, or maybe an out-of-the-country vacation, loans are there to help you get through your financial needs, whatever it may be.
Our offered loan services cater to a wide variety of purposes so being financially ready for your life’s milestones is not impossible with us. A borrower is free to use the fund for almost any purpose: wedding costs, school payables, and of course, unforeseen emergencies.
FACT: It’s easy to pay a debt from a licensed moneylender
People assume that having a debt will bury you alive. Truth is, if you got a loan from licensed moneylenders in Singapore, you can easily pay it off. UK Credit, as a licensed moneylender, practices a good after-sales process. By just browsing through our website, you will already be able to know and monitor the monthly dues you owe. Borrowing online is an easy task as repayments can be made digitally as well. A borrower will be able to get a legal contract that states all necessary details of his loan.
FICTION: Licensed lenders are very pushy
Myths about licensed moneylenders include pesky marketing. In reality, licensed money lenders would never push people to get a loan. The spam mails you have been getting are most likely coming from Singaporean loan sharks who offer loans with very high interest rates. A legitimate moneylender only uses targeted marketing that doesn’t directly affect customers unlike ‘ah longs’ who spams you and makes you pay for a huge amount per month.
Now that you know the facts and fictions about the moneylenders in Singapore, how do you tell if they are indeed dependable? Apart from a company’s good service, there are more things to look out for to avoid getting involved with illegal lenders in the country. When transacting for a loan, ask for a license number which you can use to verify by doing a side-by-side check at the Moneylenders Registry website. Permits for legal business operation should also be available to the public’s sight so don’t hesitate to ask for a copy. A legally-binding contract will protect you from potential issues in the future so don’t ever rely on verbal agreements.
Licensed moneylenders like UK Credit are strictly regulated by legal agencies so safety is not a concern when it comes to loan applications. If you have other worries and queries regarding loans, you may reach out to us by visiting our website ukcredit.sg. We will be glad to assist you in getting your loan approved.