There are many companies or money lenders which are providing loan of different kinds. A person can choose any company he wants but the important thing is to get loan from licensed money lending company. No one will tell you if they have the license or not without asking straight away and even then, some people would try to lie. Therefore, it is important to be able to differentiate between licensed company and unlicensed company. First thing a legal company will do is ask for the full personal information of the borrower with documents for proof. An illegal company will only try to trap a person with loan so they would not ask for documentation. Legal company is bind to get the documents of the borrower but illegal company is not bind with any legality. The legal lender will return the original documents to the borrower; he can keep the copy of the documents for filling

An illegal money lender will ask the borrower to give him the SingPass Username and password which is not right and under no circumstances the borrow should do any such thing. They will also ask the borrower to sign a blank paper or document which is very wrong, these people can use that paper for any wrong purpose. some unlicensed money lenders will also offer the borrower low interest rate in case the borrower provide him with his ATM card for a limited time and everyone knows that now days ATM cards are being used as debt card too. He can also hack in to the borrower’s account. It is illegal to borrow money from a unlicensed money lender and that is why the person will not have any right to take a legal action against that person. there won’t be any signed and legal contract as a proof and that will put the borrower in more problem and there won’t be any result even if the borrower would take a legal action against the lender. The lender can also harass the borrower physically and verbally in case of late return payment and it can be dangerous not only for the borrower but for his family too. an unlicensed money lender would not be bind with any legality so he can do anything he wants to get his money back.

A legal lender will make sure that the borrower understands the points of the contracts and if the borrower does not know the native language.  It is compulsory for lender to hire a translator for the borrower to translate the contract in a language the borrower can understand. The borrower can ask any question he wants from the lender and the lender will have to give the answer to each and every question. The borrower can take as much time as he wants to sign the contract and the lender will not have any right to push him to so it fast. Moneylender Singapore is required to follow all the rules and regulations which have been made to protect the borrower. That is way it is important for the borrower to go to licensed money lenders only.