Signs that You Are Dealing with a Loan Shark

Signs that You Are Dealing with a Loan Shark 30/09/2020

It’s tough when you’re suddenly facing a financial crisis for which you’re not prepared. Add to that the fact that living in Singapore doesn’t come cheap (the island-state is one of the world’s most competitive economies and is the world’s most expensive city to live in for the seventh consecutive year in 2020). One can understand that the average citizen would need to borrow money in difficult times.

Borrowing money is normal; it is even necessary for building a good credit history. If you want to start a business or buy something expensive, you can borrow from a legitimate money lending company. You may even apply for consolidation assistance if you have several debts to pay.

Borrowing only becomes a problem when you borrow from the wrong people.

Loan Sharks Only Offer Short-Term Financial Relief

It is illegal in Singapore to lend money without a license, but that hasn’t stopped loan sharks from finding people with financial problems and offering a quick solution. Then, just as quickly as your problems are solved, your peace of mind will also fly out the window: loan sharks charge as much as 40 per cent interest and resort to harassment and threats if you delay on your payments.

These are widely-known facts about loan sharks, yet many still borrow from them. In some cases, however, borrowers are not aware that they are transacting with an ah long. Lulled into a false sense of security, they accept the offer of financial assistance from someone whom they thought was a generous citizen.

Signs that a Lender Is a Loan Shark

It’s crucial to avoid borrowing money from a loan shark. The Singapore Police Force (SPF) advises the public to watch out for these red flags:

The person offering the loan is a stranger or old acquaintance who suddenly enters your social sphere just when you’re having dire financial problems. He or she acts like a close, generous friend for no clear reason, and doesn’t give a clear answer about when and how much you have to repay.

      • The lender asks for your Sing Pass. Bear in mind that legal lenders are not allowed to ask for this information.
      • The lender cold-calls you or sends an unsolicited text message asking if you need a loan. Both are illegal practices, and no licensed lender would do them. It would be even more telling if the lender obtained your number without your knowledge.
      • The lender advertises their services by putting up posters on lampposts or leaving flyers and calling cards in odd locations like TNB boxes.
      • The lender requires you to pay a fee before you can receive the loan. Legal moneylenders are not allowed to do this, too, not even for administrative fees. Administrative fees are charged after a loan is granted and disbursed.
      • The lender or lending company refuses to give their office’s physical address.
      • The lender aggressively tries to get you to apply for a loan. He or she is persistent and keeps asking personal questions.
      • If a lender’s attitude and approach make you uncomfortable, that’s your instinct waking. Listen and trust it.

No matter how hard your situation may be, you must resist borrowing money from an ah long. The relief their money brings will only be temporary and will be replaced with long-term worry if you cannot repay them on time. Instead, find legal money lenders that offer loan options for customers with bad credit.

We offer one here at Capital Funds Investments. Our Fast Cash Loans are designed for customers with low credit scores. We also offer Payday Loans and debt consolidation. Visit our office in Hola Centre, Singapore or call (65) 6281 7736 to apply.

Contact us today.

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