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A Borrower’s Guide on Fees that Licensed Moneylenders in Singapore Can Impose
Moneylending laws were set to regulate the practice of moneylending and to protect borrowers from incurring a financial burden that they cannot carry. From interest rates to standard fees, borrowers should know what fees licensed moneylenders can impose. These fees are standardized to protect borrowers from loan sharks and unlicensed moneylenders who may charge exorbitant and unfair fees.
Thus, as a borrower, you should know about the standard fees that moneylenders can impose on their loan. In this manner, you will know about whether you are dealing with a licensed moneylender or not.
For you to avoid the late penalty fee, you should set a reminder for the due date for each loan installment.
2.Upfront Administrative FeeLicensed moneylenders can charge an upfront administrative fee for a granted loan. However, licensed moneylenders cannot charge an administrative fee that exceeds 10% of the principal amount of the granted loan. After the moneylender has granted your loan and has deducted the upfront fee, count the money to make sure it is the correct amount.
Be aware of moneylenders who ask you to pay a fee before they can grant your loan. These moneylenders may be loan sharks or unlicensed moneylenders who take advantage of unsuspecting borrowers.
3.Court-ordered legal fees and costsWithout a doubt, some delinquent borrowers refuse to pay their loan. To recover the granted loan, the moneylender may take these types of borrowers to court. If the claim of the moneylender is successful, the court may require the borrower to shoulder the legal fees and costs of the legal process.
When the lender totals the interest rate for the loan, interest rate and penalty fees for late repayments, and the upfront administrative fee, the total amount of charges should not exceed the principal amount of the loan itself. For example, if you took a loan for S$20,000, the total amount of the fees and interest rates, should not exceed S$20,000.
Are you looking for the right moneylender?
If you are having a difficult time in looking for the right moneylender in Singapore, then you can click on this website, Loan Advisor. The website can show you a list of the most highly-recommended licensed moneylenders in Singapore. The website can also compare different banks and moneylenders to help you choose the best moneylender. You can use this website for free, and any information you will send will be safe.