When you need financial assistance, finding a lender may be easy — but making sure that the lender is legitimate is just as important.
In Singapore, licensed moneylenders are regulated by the Ministry of Law and must follow rules governing how loans are advertised, offered and granted. Unfortunately, scammers and unlicensed moneylenders may impersonate legitimate businesses, sometimes using similar company names, UENs, websites or contact details.
Before submitting your personal information or proceeding with a loan, here are several simple ways to check whether you are dealing with a licensed moneylender in Singapore.
1. Check the Official List of Licensed Moneylenders
The most reliable way to verify a moneylender is through the Registry of Moneylenders under the Ministry of Law.
The Registry maintains an official list of licensed moneylenders operating in Singapore. Instead of relying solely on a Google search, advertisement or link sent to you, check the lender’s details against this official list.
Look out for information such as:
- Business name
- Business address
- Licence number
- Registered landline number
- Approved website address
2. Check That the Website and Business Information Match
Finding a familiar company name online does not necessarily mean that the website belongs to the genuine licensed moneylender.
Scammers may create websites or social media accounts that imitate legitimate moneylenders. Some may even use website addresses that look very similar to the genuine company’s URL.
Before providing your NRIC details, contact information or other personal information, compare the website address and business details with those shown on the Ministry of Law’s official list.
You should also check the lender’s approved place of business.
Licensed moneylenders are required to conduct face-to-face identity verification with borrowers at their approved business premises before granting a loan. A loan transaction that is completed entirely online without this verification is not permitted.
3. Be Careful of Unsolicited WhatsApp, SMS or Social Media Loan Offers
Received an unexpected WhatsApp message offering you a loan?
That should immediately raise a red flag.
Licensed moneylenders are not permitted to solicit loans through unsolicited SMS messages, phone calls or social media platforms.
If someone contacts you unexpectedly claiming to represent a licensed moneylender, do not assume that the message is genuine simply because they are using the name, logo or business details of an actual company.
4. Do Not Transfer Money Before Your Loan Is Disbursed
Another important warning sign is being asked to transfer money before receiving your loan.
Individuals are asked to make upfront transfers for supposed “GST fees”, “processing fees” or similar charges before a loan can be disbursed.
Do not make such transfers.
A licensed moneylender should clearly explain the applicable interest, fees, repayment schedule and other terms of the loan before you enter into the loan contract.
Ask questions if any part of the loan agreement is unclear. A licensed moneylender is required to explain the terms of the loan to you in a language you understand and provide you with a copy of the loan contract.
Taking a few extra minutes to verify the lender and understand your repayment obligations can help you make a more informed decision before committing to a loan.
If you are considering a personal loan, Shenton Credit can help you understand the available loan options, applicable charges and repayment terms before you decide whether to proceed.
