Money lending in Singapore has never been the easiest and organized like the present day. The Banks do finance, but the norms are not too easy for one to adhere too. Therefore the money lenders play a vital role in financing. The types of loans are money ranging from personal to businesses and equipment, but the money lenders are brought into the gamut of the law, by the Ministry of Law. They collect all the details of the moneylender and register him as a licensed moneylender, who would follow the norms of the ministry. A register is maintained which has all details of their activity and they are provided a license number too. The third kind, are the money lenders who are not registered and are called Illegal Money lenders Singapore. One has to be careful, with these agencies, because they violate all the norms and charge more. Legal recourse is a tough procedure if you have borrowed from an illegal money lender in Singapore.
The list of licensed money lenders can be found on the website of the Ministry of law. The Singapore government has imposed strict laws governing money lending. The borrower has to visit their office at least once to complete the formalities. This is mandatory because the borrower should know the physical address of the licensed money lender before the process is complete. The Regulatory body also insists, on discussions of money borrowing or lending, through social media platforms like Face Book, Whatsapp, etc. This law is imposed since any moneylender would claim to be the licensed money lender, without providing proof, or even if he provides, the verification can turn out wrong. The Government is quite clear with the fact, that both the parties should meet each other physically.
Regarding the unauthorized money lenders, they are very swift in approving your loans, but it has many dangers surrounding it. First of all, these loan sharks as they are called as would charge you a rate, which is exorbitant, compared to the other two. They may charge you 40% more, and also engage in physical violence if you default. Added to all this is the fact, there would be no transparency in the transaction, which would lead to a state of confusion, and the borrower would end up losing not only money but sometimes his life.