Singaporeans are now used to the convenience brought by the internet. Food delivery, house cleaning services and even groceries can be acquired online, and now in case of a need for instant cash, loans can now be processed online.
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Despite the overwhelming number of moneylenders floating around the web, there are still certain things that must be considered.
1. Security Policy of the Website
If you are going to process your loan online, you will have to divulge your personal information, making you vulnerable to identity theft. Get to know the company you are giving your information to. Go over its website and see if it has a legit feeling.
Check for the padlock icon located next to the email address of the site and if the ‘https’ is green. To put your mind more at lease call the lender’s phone number and ask for their security policies. Also make sure you read the privacy policies, some lenders pass your information to other lenders for some commission.
Since you are processing online, you expect for a faster approval of loans. Browse around the lender’s site and check their guaranteed length of time for loan processing through online. Remember that you need INSTANT cash.
Since it is indeed risky to put up your information online, it is imperative to check the lender’s licensure in the Ministry of Law website. There are a lot of lenders willing to give you a loan, make sure that you choose a legal moneylender with an active license. And though the lender is licensed, this does not guarantee quality service, some licensed lenders had their license revoked. The government holds a strict regulation in the money lending industry to protect both the borrowers and the lenders.
4. Amount of Money to Loan
When getting personal loans, make sure that you do not get carried away and acquire loans bigger than you can afford. You have to remember that you are going to pay monthly and if you have a lot of other financial responsibilities, you need to redo your budget. Defaulting your loan can lead to bad credit rating and you will have a hard time getting more loans in the future.
5. Loan Tenure and Late Charges
In 2014, Easy88 lost its license after a client reported it to have charged extremely high ‘late charges.’ Though there is a regulation on the maximum interest rate lenders can get, there isn’t any law about the late fees. Some lenders give a one day one loan, which requires the client to pay back the loan with interest on the next day. The borrower applied for a loan of $1000 then got charged with a late repayment fee of $600 after failing to pay on time.
Deep in debt, the client then went to two other licensed providers, Assure Capital and AP Credit, to cover the skyrocketing charges, only to get the same horrible experience just like the first one.
6. Check the Review sites
Spend some time reading in moneylenders review sites. This is a place where clients voice out their satisfaction and frustrations over the services they receive from their moneylenders. You can gain insights on how a certain lender interacts with the clients.
Some licensed moneylenders in Singapore do not require a long list of requirements. With this, the process of loan approval has been greatly shorten, however you should never let anyone gain access to your Sing Pass.
Online Loan Application Process (Based on Cash Mart’s Online Application)
Submit filled in online enquiry form.
Wait for an email from the moneylender.
Come down to the moneylender’s office
Chat with a loan executive
Sign the contract
Get the cash
Detecting Loan Scams
- Loan Phishing Scams
Phishing is when fraudsters impersonate a moneylender and will try to milk more personal information. Some impersonates a well-known financial institution website, while others take time to create a seemingly legitimate site. With the gathered personal information, they can steal your identity and apply for credit cards in your name or do other transactions at your expense.
- Advance Fee Loans
The scammer will ask for a fee to release the ‘approved loan.’ When you are in great need of instant cash, it is good news to have your loan approved, however you are asked to advance the processing fee or two months of payments before the actual loan is released.
- A lender uninterested with your credit history
Even legitimate lenders cannot guarantee a hundred percent if you can have a loan. Most licensed moneylenders prefer to talk with the borrower personally to further evaluate creditworthiness.
- Upfront loan fees
Licensed moneylenders will not ask you for any fee before you receive the loan. Most scammers will call this the processing fee, yet you will never receive any amount of loan.
- Pressure to decide immediately
No lender should put any pressure on you when deciding to sign a contract. Take your time and always asked for necessary documents.
- No Location Information
Location increases police detection. Make sure you are applying for an online loan from a moneylender with a physical office.
- Too easy process
On the other hand, if your loan has been approved without so much of a fuss, then it is something you should look out for.
If you are looking for instant cash from a reputable moneylender online, start processing loans online at Cash Mart. You can also give us a call or drop by Cash Mart Balestier Road office and meet its friendly team ready to assist you towards the smooth loan application process in just 30 minutes.
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