Easy Ways To Check A Moneylender Licence’s Validity

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Why is it important for a lender to have a moneylender licence?

moneylenders in Singapore

Is there a comprehensive list of all the licensed lenders in Singapore?

list of licensed lenders in Singaporeblacklisted moneylenders

Easy ways to check a moneylender licence to ensure it’s credible

1. Ensure the lender is on the Ministry of Law’s list: The first step to checking a moneylender licence is to verify if the lender is listed on MinLaw’s official list of licensed lenders.
2. Verify the details provided by the lender: Cross-check the licence number, landline number, and office address provided by the lender with the information available on MinLaw’s list.
3. Visit the lender’s office for physical verification: Head down to the lender’s office and request to see their moneylender licence. Ensure the details on the licence match those provided by MinLaw.
4. Additional verification: Contact the Credit Association of Singapore (CAS) to confirm if the lender is a member. While being a CAS member is not a requirement for legal moneylending, it indicates a clear commitment to higher ethical standards.

Important things you should do other than checking the moneylender licence’s validity

• Research the lender: Look for online reviews and gather feedback from friends, family, or colleagues who have borrowed from the moneylender before. This can provide valuable insights into the lender’s reputation and service quality.
• Request non-obligatory loan quote: Ask for a loan quote that details how much you can borrow from the lender without any obligation to commit. This helps you understand the various terms and conditions offered.
• Ensure fair terms: Confirm the loan quote offered is fair and reasonable, ensuring that the moneylender’s interest rates, admin fees, late interest rates, and late payment fees are within legal limits.
• Compare multiple quotes: Obtain loan quotes from multiple moneylenders to compare and find the most suitable option for your needs. Comparing quotes helps you find the most favourable loan conditions.

Things that authorised lenders with valid moneylender licences can and cannot do

Authorised lenders with valid moneylender licences can:

• Legally offer a wide range of loans catered to personal and business needs, such as personal loans, business loans, renovation loans, wedding loans, bad credit loans, payday loans, monthly loans, and many more.
• Impose legally permitted interest rates, late interest rates, processing fees and other allowed charges.
• Provide clear and transparent loan terms. They are required to provide you with a contract and cannot change its terms and conditions without your consent.
• Offer repayment schedules that comply with Singapore law.

Authorised lenders with valid moneylender licences cannot:

• Use abusive or threatening language to collect debts.
• Charge exorbitant interest rates (more than 4% monthly interest) or hidden fees. The most they can charge for late repayment is $60 per month of late repayment, along with a late interest rate cap of 4% monthly on overdue payments.
• Charge a processing fee or administrative fee that’s beyond 10% of the loan principal.
• Levy early repayment penalty fees.
• Retain personal identification documents like ICs or passports.

Don’t engage with a lender without a valid moneylender licence

Conclusion: Stay safe and check for moneylender licence legitimacy before borrowing

applying for a loanloan company in Singapore