Beware of Loan Predators: Common Loan Shark Scams and How to Avoid Them

Woman handed the pen for signing in loan document

Many foreigners in Singapore find themselves strapped for cash from time to time, especially when they need money for medical emergencies or to pay their bills. These foreigners are in dire need of personal loans to settle their payables, and are, therefore, the most vulnerable to loan shark traps.

Some unlicensed money lenders or loan sharks in the state offer small loans with extremely high interest rates and hidden fees. Their tactics, in fact, have become brazen in recent years, with some targeting unsuspecting victims who have never done business with them directly. These loan sharks even threaten people with violence, charge them large interests, and cause millions of dollars in property damage.

As with all scams, the best defence is knowledge. So, let’s take a look at the common loan shark scams in Singapore and how you can avoid them.

1. The licensed moneylender impersonator

These tech-savvy Ah Longs advertise their ‘service’ through text messages, emails, SMS blasts, Whatsapp and other social media platforms. At first glance, they seem professional and legitimate, putting up a whole facade. Unknown to the common folk, they impersonate licensed moneylenders by using legitimate registration numbers from the Singaporean Monetary Authority. They use important credentials and information illegally, from the business name to the business address and registration number. Be wary when you receive offers about loan programs you never applied for, or be generally vigilant if you’re thinking of taking a loan.

2. The loan collector scam

This scam is pretty simple, but many still fall for it. The loan shark acquires the victim’s phone number and calls them, claiming that the victim has borrowed money and they are asking for repayments. In some cases, they bluff and make up stories, explaining that a third party has cheated the victim and that they are there to get the payment for the lending company.

If the victim refuses to pay, they threaten him/her with consequences, such as assault or vandalism to property. Some people who have borrowed money in the past fall prey to this tactic easily and immediately pay the scammer. If you have borrowed money in the past, call your lender or agent first and verify the call you received.

3. The fee transfer scam

The fee transfer scam is the most dangerous because the loan shark not only takes people’s money but also gains access to their personal information. The Ah Long will text or call the victim, claiming that they have been approved for a loan. The catch is that the victim needs to pay an admin fee before they can take the loan. The scammers will then trick the victim into giving them SingPass access, giving them the means to see personal and private information that they can later use to intimidate or harass the victim.

If they are successful, the loan sharks have scored a huge win. They not only receive the money transfer fee, but they also acquire personal information that they can use as leverage on their victims.

Other tell-tale signs of a loan shark include people who offer to do business without a signed contract. The law requires licenced moneylenders to use contracts for security and accountability. Loan sharks also offer huge sums of money to victims despite the victims’ relatively small incomes. Additionally, if they operate without an office and they’re not listed on the Ministry of Law’s website, they’re most likely illegal moneylenders who charge their victims with exploitative interest rates and fees.

Apply for a Foreigner Loan with Trusted Moneylender Capital Funds Investments

As a foreigner in Singapore, it can be difficult to find a financial institution you can trust to offer you a loan. Capital Funds Investment is Ministry of Law-approved and licensed. We provide foreigners in Singapore with a fair loan, and we never abuse the confidential information that we receive during the application process.

For more information regarding our CFI Foreigner Loan, call us on (65) 6281 7736 or send an email to enquiry@loancfi.com.

Safe Transactions for Foreigners: Advantages of Working with Licensed Moneylenders in Singapore

A doller bills in a wallet

Highly stressful emergencies become doubly difficult when paired with the burden of suddenly needing large sums of money. If you are a foreigner in the country, finding the right institutions to borrow money from becomes more complicated. Friends and family are unlikely options, given their unavailability and the added risk of causing tension in your relationships with them. If you go to local banks, you’d need to go through many processes and requirements before you obtain your money, which is not ideal if the circumstances are taxing and you are already pressed for time.

One possible solution to your money-borrowing woes is to find a trustworthy and convenient loan source that can address the complexity of your situation. In cases like this, working with licensed moneylenders like Capital Funds Investments can help you obtain the money you need without adding to your stress. We provide options for you to receive financial relief as soon as possible, making sure you can take care of your emergency here in Singapore.

Recognising the Urgency of Loans

Dealing with emergencies requires a quick and practical response. Our streamlined approval process makes it possible for you to address your financial circumstances immediately, preventing the situation from escalating further. We know that going through a painfully long application is not on your list of preferences right now, so we adjust by giving you a straightforward way to borrow money.

Guaranteeing Safety and Security

Unfortunately, some organisations treat foreigners looking for loans as chances to charge unfair fees and interest rates during a trying time. As part of the government’s list of licensed lending services, we can ensure that our operations are legal and straightforward; there are no hidden fees, surprise payments or abuse of personal information, helping you direct your full attention towards dealing with your emergency.

Adjusting to Your Situation

Our packages vary, depending on the amount you need and your current situation. We understand that persons going through difficult financial times may be unable to work with demanding loan repayment schedules, so we work with you closely to find a loan package that is beneficial for both sides. Rest assured, our main priority is giving you the immediate help you need, and we are committed to finding the best possible solution for you.

Couple Availing Personal Loan in SGBorrowing Money Made Easy

At Capital Funds Investment, we offer competitive loan packages for foreigners in Singapore. The foreigner loans are part of our wide range of loan options, including fast cash loans, business loans, personal loans, debt consolidation loans and payday loans. We are licensed by the Ministry of Law, ensuring that your transaction with us will remain fair and secure. We are committed to helping those who are in unfavourable financial circumstances, providing credible and trustworthy loan solutions for clients. With Capital Funds Investments, you are sure to find a loan that will help you relieve your financial burden without worry.

Apply for a loan now. Call us on 62817736 or send us an email at enquiry@loancfi.com.

How a Moneylender Can Finance Your Home Improvement Project

Financing a home improvement project while living in Singapore can become an overwhelming task. Whether you want to make a few simple upgrades or construct a pricey new addition to kitchen, remodeling your home in Singapore can drain up your savings pretty easily. So you must look for a loan depending on your monthly income and the scale of your project. However, going to a Singaporean financial institute can take a long time to get your loan approved. Banks analyze your credit worthiness before offering you a loan and your loan might also get rejected due to your low credit score, low income and employment history. Seeking a personal loan from a licensed moneylender in Singapore can be the best option when you are in financial crisis and need to finance your home remodeling project. Here’s how a licensed money lender can fund your home improvement project the easy way.

Licensed moneylenders in Singapore offer various types of loans such as personal loan, payday loan and even debt consolidation loan with flexible repayment tenure. The best part is that these money lenders are authorized by the government of Singapore and the whole money lending industry is guided by the laws and regulations framed by the country’s government.

Easy application and documentation: A licensed money lender in Singapore knows the urgent financial needs of people like you. They have easy loan application process. In fact, some money lenders accept online applications through their secured website. They also have minimal document requirements and may ask you to submit income and address proof, National Registration Identity Card and tenancy agreement.

No credit check or income limitation: A licensed moneylender will not check your credit score before approving your loan. Whatever is your income level and what type of loan you want to take for home renovation, you can easily get a loan from a lender.

Fast Approval: Seeing the high cost of living in Singapore, it is essential to get your home improvement project completed quickly. When you apply for a personal loan from a licensed moneylender in Singapore, it might get approved within a few hours, which will help you to get your project done quickly.

To qualify for a personal loan from a licensed money lender in Singapore, here are the eligibility criteria:

•You must be a Singapore permanent resident over 21 years of age, or an expat with a valid work permit (S Pass)

•Give a photocopy of your National Registration Identity Card (NRIC)

•Provide legal proof of income such as bank statement, payslips for the last 3 months or income tax returns. If you are self-employed, you must give your income tax statements or legal proof of income.

•Expats or foreigners are required to provide tenancy agreement

•Proof of address (PUB bill or handphone bill)

No need to mortgage your house, use your credit card or look for a home loan from a bank for financing your next home improvement project. Taking a personal loan from a licensed moneylender in Singapore is best for your current home improvement project needs.