In Singapore, the government does not allow people to take out a loan from an unlicensed moneylender. The Moneylenders Act of Singapore protects borrowers by imposing a maximum and late interest rate that any licensed moneylender should never exceed or they will face a penalty. In 2019, the Moneylenders Loan Academy (MLA) was established to provide information about the licensed money lending sector to the public. The Moneylenders Loan Academy aims at educating the public that licensed money lenders are a viable option for financial help and not only a last resort. Although MLA does not restrict how you use your money, it has a lot to offer when it comes to taking out personal loans. Here is how the Moneylenders Loan Academy can help you.
- Defining a licensed Moneylender. According to the Moneylenders Act, a moneylender is any entity that acts as the primary lender or an agent to a money lending organization. Every money lending business must be fully licensed and should follow all money lending regulations. Any unlicensed moneylending organization will not care about your rights, especially when recovering their money from borrowers. Such platforms may use abusive language or even harm you when recovering their money. As such, it is advisable to borrow money from a licensed money lender in Singapore. Licensed moneylenders obey the law, and they have a responsibility towards their borrowers.
- Credit Score. The Credit Bureau Singapore (CBS) is responsible for providing you with your credit score. Your past loan transactions will determine your credit score. The CBS looks at your previous loans, your repayment history, and any requests that you have made to financial institutions. The credit score ranges from 1000 to 2000. The higher the credit score, the higher your chances of qualifying for a loan. MLA can help you to understand how to check, improve, and even obtain your credit score.
- Debt. You may have taken several loans from different financial institutions. With such loans, you will end up with a high-interest rate, and it may become difficult for you to manage your debt. MLA can provide you with a Debt Consolidation Plan, which combines all your loans into a single bank. This strategy will make it easier for you to repay the loan. You will also enjoy a better interest rate than individual loans. The Moneylending Loan Academy can also offer you with tips on how to clear off your debts as quickly as possible.
- Loan Information. Before taking a loan, you must understand the terms and conditions attached to that loan. If you are not careful, you may end up taking a loan that has some hidden charges. MLA can help you in analyzing your loan. If you need quick cash, MLA can also offer you with tips on how to access an urgent loan. Although quick loans often come with a slightly higher interest rate, MLA will help you in choosing the best deal.
With Moneylending Loan Academy, you are sure to get the most out of any loan you decide on taking.