All About Licensed Money Lenders

This article talks about licensed money lenders and how they operated.


  1. ​Most people fall easily into debts due to the availability of easy credit and all sorts of temptations around. When faced with financial difficulties, the best way out is to seek loans to temporarily to resolve any outstanding payments. However, conventional lenders like banks can be hard to get a loan from. If banks rejected your applications for a loan, you can try going to a licensed money lender like SG Personal Loans for a loan.


    Personal loans are also one of the more popular loan types around. Banks provide personal loans as well, so borrowers tend to be more familiar with it. This type of loan has a longer loan tenure of up to a few years. This is more popular with borrowers who wish to pay a lower amount of instalment each month.


    Compared to banks, the loans provided by money lenders tend to be in the smaller range. However, if a borrower has good credit history, larger loan amounts may be disperse. Licensed money lenders provide a wide range of loans namely business loans, foreigner loans, payday loans, personal loans and private property loans. Consolidation loans are getting more popular with lenders while certain lenders may provide car loans, medical loans and student loans.


    Payday loans are typically termed loans that lasted until your next pay check. Among borrowers, the payday loan is the most popular loan for them. It can be used for urgent or unexpected expenses out of the blue. Lenders are known to favour payday loans as they know they can get back their money fast.


    All businesses need to make a profit and this is the case with money lenders even though they are under the governance of IPTO. Interest rates are definitely higher than banks as the risks they carried are much higher than banks. Banks normally only lend money to people who either do not need it or have the means to repay. Nowadays, money lenders and pawn shops are preferred over banks due to banks' strict policies and low approval rates.


    Before going to a money lender, you should know what a licensed money lender is all about. A licensed money lender is a legal financial entity that has been authorised by the Singapore government to provide legal, financial loans to Singaporeans, permanent residents and foreigners working in Singapore. IPTO (Insolvency & Public Trustee’s Office) is the department in charge of issuing licenses as well as governance of this industry.


    Basically, a business loan is applicable for people who are running their own businesses or intend to borrow money to start one. The checks for such loans are usually more stringent as it is more difficult to access a borrower's financial situation and his ability to repay.


    For those who are looking to invest in a private property or in the midst of selling or shifting to a new property, the property loan is the best option. Due to the large amount of cash involved in properties, sometimes one may run into cash flow problems. To overcome this, you can approach a money lender for help in getting a private property loan or bridging loan.


    If you intend to get a loan from a money lender, make sure it is a licensed entity. In recent years, a lot of unlicensed lenders have sprung up to provide loans to unsuspecting people. These so called money lenders are not authorised to provide loans legally. Most people are not aware until they are hounded by these illegal lenders to return their loans. Licensed lenders have to work within the laws and they are not allowed to harass debtors. As you can see, going to a licensed lender for a loan is the best option.


    Only licensed money lenders can provide loans to people legally. In order to protect debtors, the government has put up many regulations in place to restrict how much money lenders can charge. At the very least, you know you are protected to a certain extend. You can call up IPTO if you encounter any money lender that overcharge you. You may not be able to get a loan from money lenders in the future if the government gets rid of them.


    For foreigners who are working in Singapore, going to a licensed money lender will be a good alternative to banks. Without sound financial history, it will be hard for a foreigner to get a loan in Singapore.


    Money lenders need to renew their licenses annually in order to continue their business operations. Any violations against the Moneylending Act may see a money lender having its licensed revoke. Nowadays, it is very difficult to get a license so many money lenders are very careful with the rules and regulations. The government's purpose is to get rid of black sheep in the industry and protect debtors and cut down cases of overcharging and harassments.


    Basically, when taking a loan from a money lender, you need to find a licensed one. If you are not careful, you may end up borrowing from an unlicensed one which will lead to a lot of issues for you down the road. Many loan sharks sell themselves as licensed money lenders in order to get your business. Even if you are careful, sometimes you may fall for their tricks Do contact IPTO to verify if a lender is a licensed one. You may also contact the police.

  2. Getting a loan from a licensed money lender is relatively quick and easy.