Unlicensed moneylenders, also referred by people as “ah long” or loan sharks, are well known for their rude behavior, harassment tactics and very high-interest rates. They gave loans to those people who were rejected by the bank or Licensed Money Lender and then harass them if they weren’t able to repay the loan. Many people were stuck in their traps and lost everything to them.
On the other hand, licensed moneylenders are abode by law and can’t take unreasonable interest rates, can’t charge you with excess fees and also the amount they can lend is also restricted by rules and regulations.
How to know if a moneylender is licensed or not?
To find out if a moneylender is licensed or not just go to the Ministry of Law’s website and you can find a full list of licensed moneylenders there. The list changes over time so always check the name of your moneylender in the list to know if their license is still valid before you take a loan. Or, you can apply on Crawfort which is among the most trustworthy moneylenders in Singapore. Their Fast Loan service is amazing, faster than you can imagine. Just give it a try, apply on Crawfort.
Why licensed moneylenders focus on smaller loans?
The legal amount that a licensed moneylender can lend is up to four times the monthly income of an applicant. We know that a personal loan is an unsecured loan and doesn’t back up by any collateral. The licensed moneylender don’t have resources like banks and they also can’t do things like unlicensed moneylenders, so there’s only one option left for them to do. They focus on smaller loans just in case, if something happens, they didn’t lose much money. That’s the only way for them to protect themselves from a bigger loss.
How fast can you get a loan from a licensed moneylender?
Well, it is so amusing that normally a bank takes up to 48 hours to two weeks to process your application for a personal loan and then a period of 7days for the sanctioned amount till you get it. While on the other hand, the whole process will take about 30 minutes or less, and from assessment up til, you get your cash will only take not more than 45 minutes. Because of fewer documentation requirements and credit checks, licensed moneylenders approve loans faster. In this way, licensed moneylenders can also help those whom banks can’t.