finance

7 Qualities Of Trustworthy Singapore Licensed Money Lenders

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In today’s world taking a loan is a very common trend. Personal loans are the best way one can cope up with the financial situations in the market and hence has become an important aspect of business for financial companies. Personal Loan is an easy option for the fund but considers availing it when seriously in need of the same. One must be very careful while taking a loan should check before they take a loan from any moneylender. Most of the time we lack time to check the history and review of the financial institutions providing you with the loan as the loan is mostly taken in time or urgency. But why do you need to check the reviews on moneylenders?

Borrowing money is a matter of trust, but many fraudulent issues are happening with regards to loans. So it is very important for you to look for a trustworthy moneylender who is authorized by the Government to take loans from. Taking a loan from a licensed money lender is probably the first and foremost criteria that a borrower should keep in mind. One must remember that there are more than thousand money lenders present in Singapore, who will be ready to provide you with easy cash loan. But you need to check the moneylenders thoroughly before you finalize a deal. It is always good to take quotes from several moneylenders before you finalize with one.

7 Qualities that proves that your moneylender is trustworthy:

Most of the time we try and take a loan when we are in utter financial crisis. In the hustle bustle of taking a loan in short time, in general, we miss out the most important work – checking the background of the moneylender to know if they are trustworthy? But how can you understand if a moneylender is trustworthy enough? The seven qualities that help in assessing if the moneylender is trustworthy can be described as below –

  1. Companies with a low rate and competitive fees:

When you plan to have loaned the general thought that you have in mind is that the private money lender provides you with rates higher than that of the banks. This concept is always not true. If you choose a moneylender who holds a legal license, then the company never gets the authority to charge you an exorbitant interest rate or processing fee. Of course, the rates are bound to be higher than the government-owned banks but the since they follow the general Ministry rules they never charge you high. The private but licensed moneylenders provide you with many other benefits that make them approachable in comparison to the banks.

  1. Support in understanding the terms and conditions:

Trustworthy moneylenders like that of Credit Excel Capital, are always willing to provide you with assistance in understanding the inclusions, exclusions and the general terms and conditions mentioned in the contract papers before you put your signature in it. It is the law of the Singapore Government for money lending that every single lender should explain terms to their borrowers before processing a loan. So if you feel you have doubts about the terms and your moneylender is not willing to explain them to you, be sure he is not the trustworthy lender.

  1. Customization of Services:

Another important quality a trustworthy financial organization should have is the power of customization. We all understand the fact that every single individual requesting a loan has different criteria and different financial situation. Because every borrower need is different, a moneylender should never provide them with same or similar plans. A good legal organization should always come with plans for customizing the loan based on the customer’s requirement. A customer should never be forced to take a loan that is predetermined. Singapore Government has standard Cap of loan limits set for all borrowers. The money lenders should respect the limits and provide borrowers with modifications in the plan within the set cap.

If you have chosen yourself a trustworthy moneylender, then stay reassured that they will make calculations for your loan just in front your eyes. They take the rate calculations and present you with various scenarios of rates and repayment schedules. It is your job to choose the one suiting your requirement.

  1. A Good name for good service reviews:

When you plan to take a personal loan from a moneylender, you must ensure the lender is providing you with the best assistance and good rate. But apart from approaching a moneylender with good facilities, it is your job to look for a moneylender who, as a brand is well known in the market of Singapore Moneylenders. If you have chosen a moneylender with the good name it obvious that you will easily come across the reviews in the market. You can easily check with your friends and family and others for any reviews on the services provided by that financial institution. The task becomes even easier nowadays, considering the online market of loans. You can find out the reviews on services the moneylender provides from various online sources. A good review helps you to understand if the moneylender is trustworthy enough to meet your requirement.

  1. A money lender with high capital:

A money lender who is providing you with a lump sum loan amount should have an appropriate amount of capital in their fund. Remember the fact that money lenders are not meant for providing you with the only huge amount of money. Apart from the loan quantity, the money lenders also allow you with long-term plans for loan repayment. So this means there should be capital in enough quantity to stay financially strong. You need to take a loan from a legal money lender make sure the loan provider has sufficient capital on hand to support you throughout loan repayment. A good company will never transfer the loan you have taken to some other money lending company when it gets bankrupted.

  1. Money Lending License from the Government:

Having a license is probably the primary criteria to be checked when it comes to a money lender in Singapore. Singapore had roles out its list of legally registered money lenders in 2015. Some companies have registered them as legal money lenders according to the Ministry of Singapore. So when you take loan remember to check the registration of the company with the suitable state department. To get this information, not necessarily you need to approach the moneylender. You can simply look at the list of MAS authorized money lenders and concluded.

  1. Transparent Loan Policies:

Transparency is a must when it comes to loan. A trustworthy moneylender should always be transparent with the borrowers regarding the policies of loan they provide. There should be a clear policy of loan and repayment schedule. Even if there is an option for teaser rates from the moneylender’s end, then the customer should get clarity on the same before signing any contract with the moneylender.

Conclusion:

To conclude on the qualities of a legal moneylender, it is very important to mention that a legal and trustworthy moneylender will strictly follow the rules brought upon by the Singapore Government. They are bound to follow the standard fee structure set by the Government. So there should be an extra charge on that.