Leading a life without borrowing at all is somewhat next to impossible. It is known to all that money is a prized possession. Because of its importance, value, and sensitivity, money should be dealt with carefully. Looking upon the high worth of money, it is understood that dealing with money cannot be done with anybody and everybody. It is better to deal with a licensed money lender regarding issuing debts. Presence of loan sharks is a recurring phenomenon today. This makes it all the more difficult and inconvenient to identify the originally licensed money lenders. But, with great fortune, the distinction between licensed and unlicensed money lenders is quite distinct. As the name goes, licensed money lenders bear a stamp of the government of the respective state and abide by the laws of the government along with its terms and conditions. Loan sharks, on the contrary, operate according to their free will. Therefore, it is important to pay attention while you sign a contract only to know whether you are you are developing bonds with a licensed money lender or a loan shark. Given below are few important points, rather basic requirements to identify a licensed money lender like Credit Excel Capital.
- Conduct background search on the money lender.
Before delving deeper into anything, a detailed research is a must. Similarly, in case of appointing a money lender or seeking the assistance of a money lender, verify the details of the lender. With the advancement of technology, doing a clear search about the money lending team that you will be opting, will not be a rock breaking task. Generally, licensed money lenders have their personal websites. You can stalk into the websites and know about a great amount of its working. Also, some reputed money lenders have individual sites developed for clients. You can make a clear report regarding whom to choose by studying other client’s reviews.
- Confirm that the money lender is registered with the Ministry of Law.
After selecting a particular money lender in mind, check if they are available on the website of Singapore Ministry of Law. What another must-have of a licensed money lender is their enrollment under the government based firm. This makes the working of the customers quite easy because being a customer or borrower, all you need to do is to check the list of Singapore Ministry of Law’s website. Once you find the money lender’s firm there, you can blindly accept the firm to be licensed. Moreover, once the money lender is registered, he or she can never deny or violate the rules and regulates of the government. If there is any reporting regarding violation of law, the moneylender is sure to lose his or her license. This implies that only honest, determined and serious money lenders will enroll themselves under the government and keep words accordingly.
- The money lender should have a physical office.
The existence of the money lending office is another hallmark of a licensed money lender. The physical office should have parity with the site designed online. Contrarily, only loan sharks will avoid setting up an office and dealing with everything over the web. Money lenders, who are determined in their job and take up the workings of the business seriously, will recruit a considerable number of staffs in his office. After acquiring the details from online sites, make it a point to call up and settle for a meeting in the office premises of the money lender. Even at the time of signing the final contract, see to it that the deal is finalized nowhere but in the office of the money lender.
- The rates of interests charged should not be varying and extremely high.
Another identifying mark of a licensed money lender is that it will never raise its rates of interest beyond the persisting market rates but run its business in parallel lines with the market value. This generous and justified act of the money lender, in turn, gives the borrower a peace of mind as the borrowers do not see a huge jump in both the rates of interests. Also, according to the Ministry of Law in Singapore, a rule dictates that any licensed money lender should equally charge the rates of interests as per decided previously. As long as you are attached to your preferred money lender, make certain that he or she chooses the registered rate of interest otherwise, there will arise question regarding his or her license. And if you rely upon a loan shark, be sure that the rates of interests can differ any time.
- Scrutinize the types of fees charged by the money lender.
Keeping aside the rates of interests, as per the laws exercised upon the Singapore moneylenders by the Ministry of Law, a money lender can levy three other charges upon his or her borrower. Also, the consumer should be aware of this procedure so that no one can bluff him and extract unnecessary money. After paying these three charges, do not fear of any hidden charge. The three charges are as follows:
- The introductory fees for service. This will be taken by the lender so that the loan starts functioning. The amount should not cross 10% of the complete loan value.
- During a court case, some amount of legal fees is required.
- In case of defaults on the part of the borrower, a late fee is to be submitted when the loan is not paid back on proper time.
Given all the three points, the lender should be ready to sign the contract only when he or she is satisfied with these conditions. The contract is the only link between the money lender and the borrower. Therefore, never at any cost sign on any blank sheet of paper or incomplete agreement papers. Since the entire process is guided by the government authorities, the contract should be prepared and passé from the hands of a lawyer. The contract should not miss out any point as discussed above. Things to be made clear are the interest rate at which the loan is being sanctioned; period within which the loan amount is to be repaid and other fees that can be charged to the borrower. As per the role of the borrower, he or she should be able to understand whatever the agreement says clearly. If any doubt arises, immediately ask your preferred money lender about it before signing the contract form. The contract needs to be signed by both the money lender and the borrower, and also the borrower should have a copy of the agreement.
Whenever you come across any spam message from any money lender or performing telemarketing, immediately cancel the deal. It is obvious that such a lender will never register his or her business under the government norms. Licensed money lenders are ruled never to promote their business via SMS, and this is the only reason that people get trapped into the fake meshes of loan sharks. A licensed moneylender is aware of the fact that you need to pay back the loan within a limited time frame. So he will be responsible enough to look into your monthly income, loan repayment schedule, and financial obligations if there are any. Whereas, a loan shark will hardly mind your position. Therefore, if you are in an urgent need of money and have planned to take up loan services, think twice.