Singapore has a thriving industry of licensed moneylenders who provide quick cash loans to individuals and businesses. However, with so many options to choose from, how do you know which lender to trust? This article provides an in-depth review of licensed money lenders in Singapore to help you make an informed decision.
The Benefits of Borrowing from Licensed Money lenders
Unlike illegal loan sharks, licensed moneylenders in Singapore are regulated under the Money lenders Act.
Dealing with a licensed lender provides several benefits:
Legitimate business – Licensed lenders are legal entities registered with the Registry of Moneylenders. You can verify a lender’s license number to ensure they are authorized.
Reasonable interest rates – There are caps on the maximum interest rates licensed lenders can charge. This protects borrowers from exorbitant interests.
Flexible repayment terms – Most licensed lenders allow you to customize loan tenure and amount based on your needs.
Access to quick cash – Licensed lenders can disburse loans in as fast as 1 hour after approval. This meets urgent cash needs.
Factors to Consider When Choosing a Licensed Money Lender
If you’ve decided to borrow from a licensed money lender, here are some factors to consider when choosing one:
Interest rates and fees – Compare interest rates, admin fees and late payment fees across lenders. Go for the lender with the lowest overall costs.
Loan amount – Look at the minimum and maximum loan amounts offered. Choose a lender that can accommodate the loan size you need.
Loan term – Lenders offer different repayment periods like weekly, monthly or yearly loans. Pick one that aligns with your cash flow.
Requirements – Check eligibility criteria like minimum income level, nationality and credit score requirements. Ensure you meet the lender’s requirements.
Customer service – Read reviews about the lender’s customer service and support. Good customer service can make the repayment journey smoother.
Transparency – Opt for lenders that are upfront and transparent about all fees, interest rates and terms. Avoid those that hide behind fine print.
Top 5 Licensed Money Lenders in Singapore
Based on factors like interest rates, reputation, transparency and customer experience, here are 5 of the best licensed money lenders to consider in Singapore:
KBB Credit – One of the top licensed money lender Singapore reviewed near Bugis with over 600 five stars review. Offers flexible loans at low interest of 1.2% per month.
Bugis Credit – Known for quick approval and disbursement. Interest rates start from 1.96% per month.
Aero Credit – Reputable lender with fully online loan application and disbursement process. Interest from 1.4% per month.
JD Credit – Popular for small loans below S$2000. Low admin fee of S$25.
Finance Hero – Digital lending platform with fully automated system. Interest rates from 1.3% per month.
The Bottom Line
Borrowing from a licensed money lender can provide fast access to emergency cash. However, you need to do your due diligence and borrow responsibly. Follow the tips above to choose the right licensed lender in Singapore for your needs. Compare interest rates and fees before committing to any loan. Only borrow what you need and can afford to repay.