A money lender is a person who lends small sums of money at a higher interest rate. The reason for the higher interest rates is that money lenders have a higher risk of default than traditional banks for a variety of reasons. Persons who are in severe need of money but do not have access to a bank account, people with poor credit histories, and those who are unable to obtain funds from friends or relatives turn to a moneylender for credit.

Licencing for money lending

The Revenue Department typically grants a money lender license within 3 to 4 months of the application being submitted. The application is valid for one year after it is received. However, there are a few variables that must be taken into account when issuing or renewing a license. Whether the application is qualified to conduct a money lending business and whether the applicant’s location is suitable for doing so.

Will require you to sign an agreement at all times

There must be documentation for any legally binding terms. The contract must include everything you need to know about your payday loan, including the amount of interest you’ll have to pay every month. Before authorizing and disbursing your fast cash loans, licensed moneylenders who are good at money lending in ang mo Kio must personally verify your identity.

They will not request any personal information from you

Your personal information will never be requested by a licensed moneylender. Instead, they’ll demand that you supply them with the relevant documentation, such as identification cards, driver’s licenses, and other government-issued identification cards, before proceeding.

They’ll demand security

A licensed loan provider would never provide you with a loan without requiring some type of collateral, such as ownership paperwork for your home or vehicle. If someone offers you a loan without this criterion, you should avoid doing business with them since you have no way of knowing if your funds will be safe and secure, or even if they will be returned at all.

Conclusion

Lastly, defend yourself by conducting research, which will protect your money from problematic individuals and businesses. So, always do your homework and double-check everything before signing anything so that you don’t have to worry about anything during your loan term. Plus, if you have any questions, you can always contact Loan Advisors for more information. Keep an eye out for loan sharks and always do your homework.