During a financial emergency, when you need to settle payments immediately, a licensed money lender is the best choice for many. However, if you have never approached a licensed money lender before, then it can be a daunting task. There may be several queries that you may have regarding licensed money lenders in Singapore. There is not much clarity about licensed money lenders, and most people view it as illegal, or a way to extort naïve people for money.

However, money lenders who have been registered under Singapore’s Registry of Money Lenders are performing their operations completely legally. When you go to a licensed moneylender, you can be assured that you will not be extorted and will be aware of all terms of the loan before it is processed.

Here are some frequently asked questions about getting a loan from a licensed money lender:

1. How will I qualify for a loan from a money lender in Singapore?

In order to qualify for a loan from a moneylender, you must be a citizen or a permanent resident of Singapore, or if you are a foreigner, you must have a valid work permit and passport. You must be above 21 years of age and should not be an undischarged bankrupt, nor should you be facing any possibility of bankruptcy. You should also be permanently employed, have a valid work permit, or be self-employed with a stable income.

2. What is the maximum loan amount that I can take out?

If you are a citizen of Singapore and you earn less than $20,000 a year, then you can get a maximum loan amount of up to $3000. If you earn more than $20,000, then you can get a maximum loan amount of up to 6 times your yearly salary. If you are a foreigner, then you can get a maximum loan amount of $500 if you earn less than $10,000 a year. If you earn more than $10,00 a year but less than $20,000, you can get a loan amount of $3000. If you earn more than $20,000 a year, then you can get a maximum loan amount of up to 6 times your salary. However, the aforementioned amounts only apply if you are taking out an unsecured loan. That is a loan against which you do not have to give any collateral to the lender. If you are opting for a secured loan with insurance, then there is no limit to the maximum amount of loan that you can take out.

3. How long before my loan is sanctioned?

In most cases, licensed money lenders try to offer you same day service. Most people who approach a licensed money lender are in need of quick cash to settle immediate payments, and the maximum loan amount to be approved is quite low. Hence, licensed money lenders try their best to offer same day service, or help you get your application approved quickly as they understand that you only approach them only in case of an emergency.

4. What should you know before you apply for a loan?

When you are applying for a loan, you should be aware of the loan amount that you absolutely need. This ensures that you do not take out more money than you need or that you will be able to pay off. You should also be aware of the repayment schedule as it may vary from one moneylender to another. Since a loan is a legal, financial commitment, hence you should ensure that you will be able to pay off the loan on the due date. Additionally, you should also check the penalty amount and consequence of late payment.

Another essential step is for you to check whether the money lender that you have approached is legitimate or not. You must ask for their license number, or you can even look them up on the Registry of Money Lenders to ensure that they are legitimate.

5. Is there any cap on the interest rate charged?

Since October 2015, money lenders in Singapore cannot charge interest of more than 4% per annum of the total loan amount. Hence, if you find that someone is charging you more, then they may not be registered on the Registry of Money Lender or are using unfair practices. Similarly, if you are late on a payment, then your moneylender can only charge you up to 4% of the total amount as a late fee and not anymore.

6. What if I have been or become a victim of unfair practices?

When dealing with money, there is always a fear of what happens if you are a victim of unfair practices. In such cases, you can register a complaint with the Registry. The Registry ensures that your personal details are kept anonymous from the moneylender.

Are you looking for a licensed money lender?

If you are on a quest to find a licensed moneylender, then you can visit Crawfort.com to get the best service possible. At Crawfort, they ensure that the loan application process is made easier and that you face no issues with repayment. They ensure that all of your data is kept confidential, and the best part is that from the application for the loan to the repayment, every step of the process is digitized. Hence you will not need to be physically present in their office to get your loan sanctioned. You can do it from the comfort of your own home or while you are work. Thus, there is no more worry about you having to miss work or spending more money to visit their offices to get the money that you need.

If you want immediate help for your financial needs, then visit Crawfort.com, where you can learn a little more about their business, which has been running successfully for almost a decade. Read what the clients are saying before you decide to make any commitments.