Licensed Money Lender Vs Loan Shark Aka “Ah Long”
(MAS) also known as the Monetary Authority of Singapore has portrait a gloomy economic upcoming in Singapore. Due to the increasing of prices and daily expenses continue to be on the raise. At the back-end, more individuals are searching for easy access to loans. Local banks have become strict than before and bank rules starts to become tougher. This has create a growth in unlicensed money lender activities.
Although loan sharks have been around for more than a decades, they are trickier than before. Many people who borrows from loan shark instead of licensed money lender are not aware that they are falling for their scams. Although IPTO has create very strict laws to control loan shark. It is always vital to stay on the alert when searching for financing.
Always try to get more information about who you are borrowing from. And you need to be sure that you are approaching a licensed money lender and should verify with the authority when needed.
Fake Licensed Money Lender Tell-Tale Signs
If you are wondering if you are borrowing with a loan shark you may want to go through the below to learn more. Loan sharks are using new tactics to check borrowers and to keep away from the authorities. Hereby are some tips to help you identify a loan shark right away.
Very easy loan processes – If you come across a company that does not need to verify your documentation. The chances you are dealing with a loan shark is very high. They use easy application to lure borrowers who are desperate for cash. A licensed money lender in Singapore will always request you for proper documents. Such as your Singpass, CPF contributions, IRAS statement, tenancy agreement, next of kin contacts etc.
Loan conditions that keeps changing – If the interest for your loan that you are fulfilling keep increasing. It is time to check on the licensed money lender in Singapore that you are dealing with. Request for their license number, go through your contract again and notify the authorities when in doubt.
Intimidation and threats – Licensed money lender in Singapore will never resort to threatening their customers. There are proper channels that a licensed money lender in Singapore can approach to handle default borrowers.
If the loan that is offer to you is to good to be true. Spend more time to learn more about the company from existing customers. A licensed money lender in Singapore will always be proud to provide you its licensing on their website.
Before agreeing to a loan, ask you credit office to explain every details clearly to avoid any disagreement in future.