A world full of expenses is where we live. Running out of liquid cash is no longer a rare occurrence. One of the smartest ways to overcome the problem is to borrow, but very wisely. After banks, the next best alternative is Money Lenders. But there are times in despair when we sometimes wind up borrowing from Unlicensed Money Lenders, maybe because of their appealing deals.
What differentiates a Licensed Money Lender and an Unlicensed Money Lender?
· Who is a Money Lender?
The term says it all. A Money Lender is an individual or group of people who lend a small amount of money at a high interest rate. Usually, lend to individuals who are unable to approach banks and have no alternatives left.
· The Approach.
Licensed Money Lenders Singapore use professional approaches. Their usual style is through business or consumer directories, their personal websites, and an advertisement placed in their knowledge.
Unlicensed Money Lenders are most likely to use the most informal ways. They contact customers through phone calls, text messages, E-mails, and flyers.
· How to Verify?
Thoroughly examine the lists of Licensed Money Lenders in Singapore. Go to a variety of money lenders, check their interest rates and terms and conditions. Compare and then settle on the best.
· The Contract
Bear in mind your financial obligations and incomes. Only borrow what you require and are 100% sure of repaying. It is highly, highly crucial that you consider all the terms in your contract. Reread them and ask your client to explain it in a language you comprehend. Keep in mind the interest rates, repayment schedule, and late payment fees. Remember: Always get a copy of the Note of Contact when you borrow.
Licensed Money Lenders will go through the contract in a very formal way. They will explain it to you and make sure you have comprehended all the terms in the contract. Suspicious and fishy activity will be seen nowhere.
However Unlicensed Money Lenders will go through the contract hastily. They might sneakily ask for your user account passwords or your NRIC and personal documents. They may ask you to sign on a blank document with a persuasive alibi. If you smell a rat, lodge a complaint.
· How to Lodge a Complaint?
Go to the registry and lodge a detailed complaint. Tell them everything you know about the Unlicensed MoneyLender.IfyouweretreatedunfairlygothroughtheSmallClaimsTribunalortheCourtunderthe Consumer Protection Act.
Remember: Research is highly fundamental. You can use both primary and secondary. Just make sure their repayment fees don’t turn your hair grey before age.