Moneylenders prove to be very handy during the rainy days. They are the source of easy access to credit during the financial constraints. They specialize in providing diminutive loan at the exorbitant rates of interest. The repayment can be made in the form of cash and kind. But before you make a visit to the moneylender Singapore, you must see that whether he is a licensed money lender or not.
In many nations, a law has been formulated which makes the registration of the moneylenders a mandatory event and exercise limits in the case of imposing interest rates. For instance, in India, the moneylenders who are licensed are administered by Money Lenders Act.
So let us elucidate on certain facts which you must imprison in your inner eye while dealing with the licensed money lenders.
- Reckon twice before you decide upon taking the loan- You are lawfully necessitated to meet the contact details in which you enter with the licensed moneylender. You must visit the different moneylenders in order to comprehend their terms and conditions. After getting to know the breeds, you can make a pick of the best moneylender who offers you the best deal.
- Fees charged by moneylenders- A licensed money lender like EasyCredit.com.sg can charge fees in the following cases: late repayment of interest, in case of the issue of a dishonored cheque, legal cost involved for the recuperation of loan or in case the contract is terminated quite early.
- Find out if the advertisement is from a licensed moneylender- If a moneylender is a licensed one he can advertise through three mediums: directory of commerce and consumer, website of the moneylender, advertisement remains within the premises. The other channels are kept outside the range of acceptance.
- Do not make the content as your base- You cannot trust the content entirely. You need to seek clarifications on certain aspects before you enter into a contract with them.
- Before you borrow the loan- You must pay the installment of the loan on time in order to avoid the payment of some extra fees. See to it that the moneylender is not cheating to you and is supplying you with the accurate principal amount. In addition to this, do not forget to take in a signed copy of the receipt every time you make a payment of the loan. You must not forget to retain the documentation of the repayment of loan.