Loan Article Resource Blog


Singapore Loan: Reasons to Avoid Getting a Loan from an Unlicensed Money Lender

Posted in Loan Services by elitemoneylenders on December 20, 2011
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Today’s cost of living can create the need to borrow money. The need spans across different countries, including Singapore. Singaporeans may need to borrow money for varied reasons. Common reasons for borrowing include cars, vacations, home and personal needs. Some Singaporeans choose to take out  their Singapore loan from family and friends. This option can lead to stress between the borrowers and lenders. Filling out Singapore loan documents with a money lender provides another option. Many of these lenders have a license and must follow a set of protocols when dealing with customers. However, some Signaporean money lenders remain unlicensed.

Partnering with an unlicensed money lender can create problems for those who need a Singapore loan. The potental for fraud represents one common problem. For instance, any person can claim knowledge as a money lender. All he needs is a fancy set of business cards along with a website. A potential Singaporean customer goes onto the website, fills out personal information and waits. Weeks pass without getting a loan. However, the Singaporean customer begins to get past due notices and phone calls about financial charges. Upon an investigation, the customer learns financial information was stolen. Trying to re-establish a credit history  can be a nightmare.

Dealing with improper or incorrect loan documentation represents another reason not to use an unlicensed money lender. A legitimate money broker understands proper documentation is the key to legal protection. It protects the lenders from unfair charges from unsatisfied customers. Plus, it protect customers who do not receive the correct help. An unlicensed money broker can make threats, add excess charges to the loan or not give a note of contract. The note of contract acts as proof of a Singapore loan. The document includes the amount of the loan along with a payment plan and interest rate.

An unsavory money lender can suggest taking out higher amounts for a Singapore loan. Unsuspecting Singaporeans borrow more than they need and can not repay. If a home, car or boat is used as collateral, the money lender can take the property. Using a licensed money lender reduces the chance of borrowing too much. These financial professionals analyze if the loan amount is excessive, make adjustments and advice their clients. Most loans are based on  income, such as letter from an employer. Potential Singaporean clients should wary of any lender who does not ask for proof of income.

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