How to identify a legit money lender

You only have one option of getting a loan as a foreigner in Singapore and this is through a licensed moneylender. The government has made efforts to crack down on illegal moneylenders but the efforts are yet to bear good fruit. Unscrupulous companies have learned mechanisms of getting away with it but the onus is with you, to steer clear of all lenders that are not licensed in the country. Registered lenders undergo training by the government to meet the required standards.

But how do you identify a legit moneylender?

Check out for reviews

You have been in the country for a while now and have made friends from colleagues and from other social forums, it could also be neighbors. Ask them about the company you’d want to approach for the loan. Some of these people have borrowed from these foreigner loans Singapore lenders before. Ask about them and read their reviews on their websites.

Check with the registrar

It doesn’t take a lot of your time to check out for the lending company with the registry for moneylenders. This is a list of all moneylenders in the country and it’s updated on a monthly basis. Therefore, a company that purports to advance loans and doesn’t appear here is most likely a fraud.

Confirm their license and certificate of incorporation

Any moneylender must be registered with the Association of moneylenders in Singapore to be allowed to operate. Again, they must be licensed and with a license number. You need to ask for that number which must be in tandem with the one on the certificate. You’ll also need to confirm with the registry that the number is valid. This will give you an assurance that you are dealing with a safe person.

Visit the lender’s website

Any lender worth the name must have a company website. Check the information provided on the website and confirm whether it is in tandem with what is on paper. Look out for any information that conflicts with what you know. Again, look out for the customer reviews in the feedback section. Here you’ll get leading information as to whether the company is legit.

It is crucial to note that any licensed lender will not send you an SMS and if they do, call them and verify. Their interest rates would be near to if not what you expected. Any lender who offers you a loan more than what you can afford is most likely a con.

Take time and verify any document or information from a lender before you commit by signing the contract. Use as many options as there are to weed out suspicious fraudsters.