Despite having limited land resources, Singapore has established itself as one of Asia’s most competitive economies. It has developed into a well-known financial centre and a growing wealth management hub. Singapore’s strong links with London as well as its effective economic policies have attracted businesses into investing in the country.
The emergence of Singapore as a wealth management hub has led to the establishment of numerous lending entities. The number of legal money lenders in Singapore has grown over the years. As of August 2019, there are 158 money lenders registered with Singapore’s Ministry of Law.
However, many people still choose to borrow money from loan sharks or unregistered money lenders because the process is easier. Loan sharks are lenient when it comes to requirements and they lend money faster than legal lenders. What borrowers don’t know is that they could be sinking themselves into horrendous debt when they borrow money from loan sharks.
Loan sharks specifically design their payment schemes so that they can enjoy high levels of interest rates. These loan agreements do not take into consideration whether or not the borrower can pay on time. If the payment is set on a weekly basis and the borrower fails to pay, additional charges are incurred for late payments.
Unregistered lenders are not regulated by the government and they do not report their transactions to authorised credit agencies. It becomes difficult to find a course of redress if there are problems with your transactions.
Many loan sharks do not follow legal protocols and do not have the required licenses to operate. They have no legal records and are not bound by any legal agreement. So if you are a borrower with a bad credit history, you will still not be able to improve on your credit image even if you pay them on time.
A never-ending process of borrowing
Borrowing money from loan sharks can be attractive because it seems convenient. However, such convenience might get you trapped in a cycle of never-ending borrowing. You might be tempted to apply for a higher amount than what is needed just because it is readily available for you. And with online loan applications becoming available, it becomes easier and more accessible to those who desperately need the money.
Legal lenders are always the best option
It is always better to borrow money from legal lenders. True, the process is more stringent and it does require more time to actually receive the loan, but the process is there for the protection of the borrower as well as the lender.
Legal lenders are regulated by the law requiring them to report to credit agencies, so paying back a loan improves the credit rating of the borrower and improves their credit history. It is also the case that legal lenders are much more likely to give sound financial advice.
Capital Funds Investment is a trusted legal money lender in Singapore. Whether it is for business or personal purposes, we provide fast loans. Our loans are tailored to suit or clients requirements.