If you’ve received a call from a self-sworn loan officer promising an easy personal loan at o% interest, you’re likely dealing with a fraud. With a soaring cost of living and borrowers’ increased appetite for loans, illegal lenders are in the heyday of their operations. And you’re probably wondering: why am I unable to find a legal lender in Singapore? Is everyone a loan scammer? The answer is NO. In this article, we’ll reveal everything you’re doing wrong, and why finding a legal money lender to ease your budget is actually easier than you think!
1. You’re solely relying on word-of-mouth marketing.
Need an easy personal loan ASAP? This might sound like the perfect time to call Morris from work for some recommendations. While this appears harmless, it can go downhill fast. For one, there’s no guarantee that Morris’ experience will match yours. Secondly, people have different thresholds for bad service. While Morris might easily brush off a rude, aggressive debt collector, a similar experience could have you bursting in outrage. Thirdly, how sure are you that the lenders he’ll recommend haven’t had their licenses revoked in the past few weeks?
The point is, while recommendations from family and friends aren’t bad, always supplement with your own research.
2. Your credit score scares lenders away
If there seems to be a repelling effect between you and genuine lenders, you might be the problem. More specifically, your credit score could be the main alienating factor.
The thing is, no legal moneylender wants to shell out money to a notorious debt defaulter. Whether or not you’re one will reflect in your credit score. Therefore, if your credit score falls at the tail-end of the scale (1000 points), most lenders will have to think twice before trusting you with their money. Also, getting the lowest personal loan interest rate with such a score would be impossible.
So if you’re in such a position, your main focus should be to revamp your credit history and improve your score. How? Start by paying your credit bills on time and clearing any pending loans before racking up additional debt.
3. You’re clueless about Singapore’s lending landscape
Of course, no one expects you to be a loan guru, but at least know the basics. Fortunately, Singapore’s lending landscape is far from complicated. Once you understand the ins and outs of it, you’ll no longer be a target for illegal moneylenders. It will help you spot red flags and gravitate towards legal moneylenders with your best interest at heart.
For instance, one thing you should know is how much interest lenders are allowed to charge you. Currently, the Government forbids lenders from charging anything more than 4% per month. However, don’t be surprised to learn that most people have zero clues about such protective laws. Consequently, they end up churning a lot of interest for the benefit of loan shams. To avoid such bad experiences, make sure you understand the personal loan landscape. For example, which fees should you expect? What marketing techniques are legal moneylenders allowed to use?
4. You’re too lazy to shop around
“Urgh! This list of lenders is too long, I’ll just call the first one.” Sounds familiar? Turns out, many prospective loan seekers find it daunting to shop around for licensed lenders and good deals. For this reason, they end up settling for shady loan companies with cringe-worthy loan terms and customer experience. Yet, you can evade this by simply taking a bit more time to study each lender’s website and compare their terms. For instance, you can assess a lender’s legality by following these simple steps:
- Visit the official website of Singapore’s Ministry of Law
- Click the link (List of licensed moneylenders in Singapore)
- Download the PDF and pick a lender of your choice.
5. You blatantly ignore online reviews.
While shopping around for an easy personal loan, treat customer reviews with utmost importance. Although customer experiences might differ, paying attention to online reviews can help open your eyes to what to expect. If there’s a lender promising the lowest personal loan interest rate but their customer reviews suggest otherwise, RUN. Reviews are a good way to assess legality and consistency. In the same way negative reviews can help you ward off a bad lender, positive reviews can also help point you in the right direction.
See? It’s actually possible to get a good lender if you follow the right channels. So do your research, pay attention to reviews, and work on your credit score and you’re good to go!
