Finance

Is It Safe To Take A Loan From 24 Hours Licensed Lender?

Every person at some point in their life might find themselves in a situation where they need urgent cash. It might be at 12 o’clock at night or in the wee hours of the morning under any circumstances. In Singapore, you might find many moneylenders who are more than willing to loan you out anytime of the day. But the question you need to ask yourself is, is it safe to take a loan from a 24 hours licensed lender

Search for 24-hour moneylenders in Singapore

If you are a resident of Singapore and in dire need of cash, you must keep one thing in mind: there are no 24-hour moneylenders in the city of Singapore. If you happen to encounter one, there is a likely chance that the person offering you a loan might be part of a loan scam. However, online application portals for a loan are open 24 hours a day and you can apply on those sites any time for a loan. You can also visit Crawfort website and apply for a personal loan anytime you like. 

Things to know about Unlicensed Moneylenders in Singapore

Unlicensed moneylenders or loan sharks in Singapore generally target people who are in desperate need of cash. Here are few points you must keep in mind to differentiate between a licensed moneylender and an unlicensed one:

  1. Nowadays the loan sharks in Singapore are moving towards strictly non-confrontational tactics. They are typically offering loans through SMS or WhatsApp chats. Social media, phone applications, emails, flyers are also advertising techniques of loan sharks which are illegal.
  2. High-interest rates: As laid in the rules, a licensed moneylender can charge a maximum of up to 4% interest per month on the principal amount of the loan. Unlicensed moneylenders generally charge a much higher interest rate on loans. The 4% interest rate applies to both nominal interest rates as well as late interest rates as laid under the Ministry of Law Moneylenders’ Act. Before taking a loan, gather all this information to avoid getting scammed.
  3. Miscellaneous fees before the loan gets approved: Unlicensed moneylenders in Singapore can ask you for upfront fees, admin fees, and other nominal fees before your loan gets approved. A licensed moneylender would never ask you for any miscellaneous fee before your loan is approved.
  4. Remote approval of loans: to avail of a loan, you are required for a face-to-face verification process. Loan sharks approve loans remotely without coming upfront and trap you in their scam.
  5. No contract: a licensed moneylender must draw up a written contract, if a person is not providing you with terms and conditions in a written contract, cancel your application immediately.

More about illegal moneylenders

  • An unlicensed moneylender can resort to abusive language and can even threaten you.
  • If a moneylender is asking for your SingPass user ID or password it is a clear signal that something is wrong with the process.
  • A loan shark might keep your NRIC and personal ID documents to harass you in the future.
  • He will grant you a loan without explaining to you the terms and conditions
  • An unlicensed moneylender in Singapore can also withhold a part of your principal amount giving you some lame excuse.

If any of this happens while availing of a loan in Singapore, do not delay and report that moneylender to the police. If a moneylender is threatening or harassing you, you can file a police report. The Singapore government guarantees that your identity would remain confidential.

With Crawfort you can get your loan sanctioned in just 8 minutes. It is accessible 24 hours a day and you can apply for a loan in just 3 easy steps. First you need to log into the account of Crawfort and fill out the application form for a loan sanction. The application form needs to be filled with personal data. In the next 8 minutes you will receive your application results via SMS. Next is the last and final step where you head out to the nearest Crawfort outlet at Singapore for a face-to-face verification. Once the verification process gets completed you can easily collect your loan. 

 

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