You Might Be Charged Exorbitant Interest Rates

You might believe that choosing an unlicensed moneylender is your best bet when borrowing money. After all, they don’t require you to fill out a ton of paperwork and are quick and simple to deal with. Unlicensed moneylenders can charge exorbitant interest rates, and if you fall behind on your payments, you may experience harassment from loan sharks. These facts may surprise you. Therefore, make sure to weigh your options and compare interest rates before you take out a loan. There is no need to take a chance with an unlicensed lender because there are plenty of licensed moneylenders who are willing to work with you.

Unlicensed moneylenders are hard to find.

Information about unlicensed moneylenders can be hard to come by. Unfortunately, many victims of these predators don’t learn this lesson until it’s too late. That’s because lots of unregulated loan sharks keep a low profile. They have no interest in publicizing their operations for fear of being shut down by the law. As a result, they avoid drawing attention to themselves, making them difficult to locate. If you do track them down, they won’t exactly be a fountain of knowledge. They’ll either try to talk you out of borrowing money from them or make ridiculously optimistic claims about how simple it will be to repay the loan.

Singapore Bans Unlicensed Moneylenders.

It’s crucial to be aware that borrowing money from unlicensed moneylenders is prohibited in Singapore. The consequences of doing so may be severe, including a jail sentence. This alone ought to make you reconsider, but why would anyone take the chance of borrowing money from an unlicensed moneylender? It can occasionally be challenging to distinguish between a licensed and an unlicensed moneylender. This is due to the fact that some illegal moneylenders conduct legitimate business and may even maintain a location that closely resembles that of a legitimate moneylender. The main distinction is that unlicensed moneylenders are not subject to government regulation, which means they are not constrained by any laws or regulations. Exorbitant interest rates and other unfair terms and conditions are frequently the result of this. Therefore, be aware of the dangers before taking out a loan from an unlicensed moneylender.

Conclusion

It can be tempting to go with an unlicensed moneylender in Singapore. However, several important reasons you should avoid these lenders at all costs. 

First and foremost, unlicensed moneylenders often charge extremely high- rates, which can quickly spiral out of control if you cannot repay the loan on time. Interest

Additionally, these lenders often don’t follow legal procedures when collecting debts, leading to harassment and even legal action.

Finally, unlicensed moneylenders are not subject to government regulations, meaning they may not be held accountable if something goes wrong. 

So before you take out a loan, research all your options and choose a reputable lender and remember, when the bad outweighs the good, it’s a loss.