Finance

Who are Money Lenders

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The most sought out commodity in the world is money. Be it any country or currency, the individual with cash or a corporate with the most liquid of asset achieves the highest of reputation. But all are not blessed with it. Only a handful does not borrow to sustain themselves. The rest have to depend upon the licensed money lender in Singapore, for running their lives or businesses. 

Moneylenders are of different types in Singapore. The Government has delivered a masterstroke by turning independent or individual money lenders inro a legal entity. Of course, when it comes to legal entities, the topmost, naturalised money lenders are the banks in Singapore and the institutions which are specially formed to cater to specific Niche. For example, there would be a bank only for catering to Infrastructure and Housing needs. These do not serve or function just like banks but provide to the clients who wish to borrow for construction purposes. The Banks in Singapore have their priorities, and they would be keen to lend to the citizens of Singapore and the PR’s. When an expatriate or Foreigner as they are called, the norms are set at a higher rung compared to a Citizen and may warrant collateral.  

When the banks do not approve, it is the turn of the Moneylenders who are in Singapore. They do charge a notch above the current rates but are smooth in delivery too. To make it a level playing field, the Ministry of Law, established a license for such private money lenders and made them “licensed Money Lenders”, where any transaction by them, is reported in a monthly bulletin, published by the Government itself. The source of this is a Registery maintained by the Ministry. In this register, all details including license numbers are mentioned for the borrower to study, investigate and borrow. The website is also thereof such money lenders who would give one all details. 

The last category is the Moneylenders who do not fall into the gamut of law, as the other two. They lend money at a rate which is ten times above the bank, and one of the information is revealed much since this is more of an ‘understanding’. The Singapore Government, feels that this illegal, and is trying to bring all such money lenders on board to legalise money lending and money lenders.

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