Ang Mo Kio, situated in the northeastern region of Singapore, derives its name from Hokkien, translating to “red-haired man’s bridge.”
As a planning area and residential town, Ang Mo Kio is located approximately 11 km north of the Downtown Core district. Positioned at the south-western corner of the North-East region, it shares borders with Yishun to the north, Sengkang to the north-east, Serangoon to the east, Bishan to the south, and the Central Water Catchment to the west.
Given the increasing cost of living, managing a budget can be challenging. If you find yourself in need of financial assistance, especially after a recent move, obtaining a personal loan from an Ang Mo Kio money lender can provide the necessary support. However, exercise caution and thoroughly understand the terms before borrowing funds to avoid falling prey to illegal lenders or loan sharks.
Is It Safe To Borrow From A Licensed Ang Mo Kio Money Lender?
Borrowing from legal lenders in Ang Mo Kio is a safe and regulated option. These licensed lenders strictly comply with the rules and regulations outlined in the Moneylenders Act, ensuring that their practices align with the guidelines set by the Ministry of Law Singapore (MAS).
Key regulations cover aspects such as maximum interest rates (capped at 4% per month), allowable fees, and ethical loan recovery practices.
Crucially, licensed moneylenders are obligated to clearly explain loan terms in a language understandable to the borrower and provide a copy of the loan contract, enhancing transparency and safeguarding borrowers’ interests.
The Benefits of Borrowing From Ang Mo Kio Money Lenders
Quick and Easy Loan Application Process
Faster loan approval and minimal paperwork mean borrowers can access funds on the same day of application.
Crawfort, for instance, can approve your loan within just 8 minutes, providing a crucial advantage during emergencies.
Easier Eligibility Requirements
Unlike banks with stringent eligibility criteria, legal moneylenders often have more relaxed requirements. This flexibility facilitates loan approval for a broader range of individuals, including those with lower incomes or less stable employment.
No Collateral Required
Legal lenders offer unsecured loans, eliminating the need for collateral. This is particularly advantageous for individuals without assets like property or vehicles, or those who prefer not to risk losing them.
No High Credit Score Requirement
Unlike banks that typically demand a high credit score, legal lenders often prioritize factors beyond credit ratings. This approach makes it feasible for individuals with less-than-perfect credit scores to secure a loan.
Smaller Loan Amounts
Licensed moneylenders frequently provide smaller loan amounts compared to banks. This makes them a suitable choice for individuals in need of a modest sum, preventing over-borrowing and ensuring the loan remains manageable.
Maximum Loan Quantum of Up to 6x Your Monthly Salary
If your annual income is at least S$20,000, you have the opportunity to secure a loan amounting to six times your monthly salary. This is particularly advantageous for those planning significant purchases or pursuing financial goals that require a substantial sum of money.
In summary, here’s how much you can borrow based on your annual salary:
|Singapore Citizens and Permanent Residents
|Foreigners residing in Singapore
|S$10,000 – S$20,000
|At least S$20,000
|6x monthly income
|6x monthly income
Will Borrowing Money From A Legal Money Lender Affect Your Credit Score?
Borrowing money from a legal moneylender can influence your credit history and score, much like obtaining a loan from any other financial institution.
When you borrow from a lender, the relevant information is typically reported to the Credit Bureau of Singapore (CBS), responsible for collecting and managing consumer credit data.
Your credit score is determined by CBS based on your payment history, the types of credit you have, income, and any current credit applications you have.
Interestingly, repaying your loan punctually and in full to a licensed moneylender can potentially enhance your credit score. Conducting yourself in such a responsible manner when borrowing money reflects favourably on your creditworthiness. Conversely, any instances of late payments or loan defaults may adversely impact your credit score.
Also, learn how to get a free Credit Bureau Report in Singapore.
How To Spot Illegal Lenders In Ang Mo Kio?
Loan sharks or unlicensed moneylenders, pose serious risks to borrowers. Watch out for these red flags that may indicate unlawful money lending tactics:
Not Listed In The Registry Of Moneylenders
Always check the list of licensed moneylenders on MinLaw’s website before engaging with any lender. If they are not listed, they lack the necessary licence to operate.
Unsolicited Calls And Messages
Legitimate moneylenders are only permitted to advertise through specific channels, such as business directories, their websites, or on their premises.
Any unsolicited calls, messages, or unauthorised advertisements signal potential illicit operations.
No Physical Place Of Business
Licensed moneylenders must operate from a physical office. If a lender lacks a registered office or insists on online or phone transactions only, exercise caution.
Refusal To Return Personal Identification Documents
Be wary if a lender refuses to return essential identification documents, and never provide sensitive information like your SingPass user ID and password.
No Contract Or Unclear Terms
Licensed moneylenders are obligated to explain loan terms clearly in a language you understand and provide a copy of the loan contract. Lack of a contract or unclear terms should raise concerns.
Moreover, you must take note of these other red flags:
- Requests to sign a blank or incomplete Note of Contract.
- Granting a loan without providing a copy of the loan contract or explaining all terms and conditions.
Using Threats And Abusive Behavior When Collecting Debt
Loan sharks resort to threats and abusive behaviour during debt collection. Stay alert and report such incidents to the relevant authorities to avoid falling victim to illegal lenders.
High Interest Rates Or Excessive Fees
Legal lenders are bound by regulations that restrict the interest rates and fees they are allowed to levy. If a lender is imposing significantly elevated rates or fees, it is likely indicative of loan sharking practices.
As of October 1, 2015, moneylenders are only authorised to apply the following charges and expenses:
- A fee not surpassing $60 for each month of delayed repayment.
- A fee not surpassing 10% of the principal amount when a loan is granted.
- Legal costs mandated by the court in the event of a successful claim by the moneylender for loan recovery.
The aggregate charges imposed by a moneylender on any loan, encompassing interest, late interest, upfront administrative fees, and late fees, must not exceed an amount equivalent to the loan’s principal.
Withhold Any Part Of Your Principal Loan Amount
Illegal lenders unlawfully retain portions of your principal loan amount without valid justification. This practice is both unethical and against legal regulations governing lending practices. Borrowers should be aware that any withholding of the principal loan amount without clear and legitimate reasons constitutes a breach of lending standards and may be indicative of fraudulent or predatory behaviour.
How to Seek Assistance for Unlicensed Moneylending (UML)?
An unlicensed lender, also known as a “Ah Long” or a loanshark, is someone who is engaged in the practice of unlicensed moneylending (UML).
There is a huge risk associated with UML because of the uncontrolled and frequently harmful harassment tactics that are utilised by loansharks in the process of chasing debts.
It is of the utmost importance to keep a safe distance from loan sharks and to avoid dealing with them or of providing any kind of assistance to them.
Seek assistance from the following before the problem becomes too serious:
- Contact Credit Counselling Singapore at 6225-5227 or visit www.ccs.org.sg
- Reach out to the National Council on Problem Gambling at 1800-6-668-668 or visit www.ncpg.org.sg
- Connect with ComCare at 1800-222-0000 or visit www.msf.gov.sg/comcare
The Bottom Line
It’s not yet too late to fall for an illegal lender in Ang Mo Kio. There are always trusted and legal lenders that you can count on. Always remember the red flags when dealing with a lender.
You can gain all the benefits from a lender in Ang Mo Kio if you only borrow from a licensed lender. Never fall for a loan shark.
Looking for a legal lender near Ang Mo Kio? You can count on Crawfort, which provides an easy and secured loan platform. Apply for a loan today.