Need a loan in Singapore but unsure where to go? It's crucial to know the difference between loan sharks and licensed moneylenders. Although both offer loans, the similarities end there. In this article, we'll guide you through the key differences and provide tips on how to stay protected.
Loan sharks are unlicensed lenders who prey on vulnerable borrowers with unclear terms and high-interest rates. They operate outside the law and often use threats and violence to collect debts. On the other hand, licensed moneylenders are regulated by the government and must follow strict rules and transparent lending practices.
Here are the main differences between licensed moneylenders and loan sharks:
Loan sharks operate outside the law and target those who have limited access to traditional financial institutions. In contrast, licensed moneylenders are subject to Ministry of Law regulation and must comply with strict rules to ensure fair treatment of borrowers.
Loan sharks charge astronomical interest rates that can be impossible to repay, while licensed moneylenders offer rates capped at 4% per month. Choosing a licensed moneylender can help you avoid sky-high charges and make repayment easier.
Loan sharks often hide fees and charges, making it hard for borrowers to understand the true cost of their loan. On the other hand, licensed moneylenders are upfront about fees and charges, giving borrowers clarity about the total cost of their loan.
Borrowing from loan sharks leaves you without legal protection in case of any disputes, which can leave you vulnerable and in a worse financial situation. However, borrowing from a licensed moneylender ensures that you have legal protection under Singapore's law.
Loan sharks often use intimidating tactics to collect repayments, such as threats and harassment. In contrast, licensed moneylenders follow strict guidelines and comply with regulations when collecting repayments. This ensures that borrowers are treated respectfully and can repay their loans without undue stress.
Here are some tips to avoid loan sharks and stay protected:
Click here to see a full list of licensed moneylenders in Singapore!
If you need a loan, consider borrowing from a licensed moneylender like Uniqcash Pte. Ltd.. We provide transparent and ethical lending practices, with clear loan terms and no hidden fees. Our interest rates are also capped at 4% per month, ensuring you won't be burdened with exorbitant charges. Plus, you'll have legal protection under the law!
Looking for a loan? Apply with us today!
Knowing the difference between licensed moneylenders and loan sharks can help you stay protected and avoid unscrupulous lenders. By choosing a licensed moneylender, you can ensure fair treatment, transparent lending practices, and legal protection. Remember to read loan terms carefully and stay vigilant to avoid falling prey to loan sharks. At Uniqcash Pte. Ltd., we provide reliable and trustworthy lending services that you can count on.