Online money lenders in Singapore are now commonplace. Just visit your mobile device’s app store and you can see dozens of online lending apps competing for your attention. It then makes you wonder if all these online lenders are legit.
If you’re not sure if an online lender is trustworthy, there are ways to know. Here are four things to look for to find out if they are legit.
Legal operation
Any legitimate online moneylender operates legally. That means they must be registered with the MinLaw. You can find out by visiting the MinLaw’s website – if your lender is listed in their database, that lender is legit.
When a lender is registered with the MinLaw, they are obliged to do business ethically and legally. If not, you can report them for any questionable activity. Registered moneylenders are accountable to the Singapore Government for the way they do business.
Scams are the opposite. They are not registered, so the Singapore Government knows nothing (or very little) about them. It’s much harder for the government to hold scammers accountable.
Transparency
Legitimate moneylenders will always tell you the terms and conditions of a loan upfront. They will not hide interest rates or any charges that you may incur. They will also tell you about the tenure of the loan, or how much time you have to pay it back. Most importantly, they will be transparent about how much you need to repay per month.
Transparency for lenders is important. As a borrower, you need to know if your chosen lender is worthy of your trust. Also, you will have to plan your finances accordingly before taking out a loan. When your lender is transparent about everything – terms, tenure, repayment, interest, and any charges – you can better plan how to repay the loan.
Scammers do not like transparency, though. This is the last thing on their minds. They want to hide as many fraudulent things as possible from you. You will only know once you fall for the scam.
Flexibility
If an online moneylender is willing to negotiate loan terms with you, that’s another sign that your lender is legit. They will work with you to determine the best tenure, repayment schedule, and interest rate that fit your current financial situation.
In other words, legitimate lenders want to help you out as well. They don’t want to keep you stuck in debt for a long time.
Not so with scammers. These people want to keep you dependent on them. They want to milk as much money from you as they possibly can. With that, they resort to predatory loan terms, hidden fees, and unreasonable interest rates. In short, they will do everything they can to take advantage of your shaky financial situation.
Ease of communication
Legit online moneylenders make it easy for you to get in touch with them. They are glad to address any concerns, questions, or clarifications you may have about your loan. Usually, they will have multiple channels of communication – phone, social media, email, or direct message.
In addition, legit lenders are very responsive to your queries. Anytime you have a question for them, you can expect a prompt answer. It won’t take days to get a response.
Also, resolving your concern does not take forever. They will do what they can to solve your problem as quickly as possible.
Scammers don’t do any of these. They purposely keep communication next to impossible so you can’t reach them. And if they do, the only communication you’ll get from them are threats of legal action, property damage, or physical harm if you cannot pay.
Conclusion
Not all online moneylenders are scams. There are legitimate ones as well, and these traits are what you need to look for. You can enjoy the convenience of online moneylenders while safeguarding yourself against scams.
