The rule of thumb is to never take out a loan to an unlicensed moneylender. You should first verify whether the lender is licensed or not by going through a list of moneylenders that are legitimate and reputable. (Click here for a list of moneylenders licensed in Singapore)
Here are also a few ways to check if the lender is not licensed.
- Behaves in a way that appears to be threatening or rude to you
- Requires you to give away your user ID and password (SingPass)
- Retains your personal documents and Ids and NIRC card
- Requests for your to sign a note of contract that is incomplete or blank
- Gives you the loaned amount without furnishing you with a Note of Contract copy
- Fails to explain to you in detail the terms and conditions of your loan
- Grants you the loaned amount without applying the proper procedure. For instance, you are informed of a loan approval via phone or SMS even prior to the submission of a completed application form and other required documents
- Does not give you a part of the total loaned amount for an unexplained reason
These are unacceptable practices that you should watch out for to determine whether you are dealing with a licensed moneylender or not. If ever you come across with these types of lenders, make it a point to report them to the Registry of Moneylenders. You should also provide the complete business name and contact details of the moneylender whom you think is not abiding to the legal means of lending money to clients.
Visit Ah Long (Unlicensed Moneylender) to learn more about the different ways unlicensed moneylenders operate their business.