Introduction

Wedding loans are one of how many couples can cope with the skyrocketing costs of a venue, catering, and dresses, among many other arrangements. Although licensed money lenders present a proper and viable option, the rampant demand for wedding loans has also seen an influx of fraudulent lenders, who are not licensed yet, emerging in the bid to take advantage of naïve borrowers. If you are looking for wedding loan please click https://ipcredit.sg/. This article provides a general overview of signs to spot an unlicensed wedding loan offer and its solution.

Common signs of fraudulent wedding loan offers

Unregistered money lender: Borrowers should always confirm the name of a lender with the official registry, ask for their license number and independently confirm it from official web resources of the government. A lender who fails to address the issue of licensing or who is not officially listed is trying to play fraud on innocent borrowers.

Upfront Payments: Another way that fraudulent lenders employ is by requesting upfront payments before the loan is granted. They can say these are processing fees, insurance costs or verification fees. Nevertheless, legitimate licensed lenders generally withhold such fees from the borrowed loan amount and not in advance. Whenever a lender asks for payment through unusual means such as wire transfer, cryptocurrency, or gift cards then it is a probable scam.

Attractive Offers: If the loan proposal looks too attractive, it is saying something. Although licensed lenders could be less restrictive than banks, they will still scrutinize your finances and refuse to lend to you if you are not credit-worthy or your cash flow is uncertain. Any offer that pretends to not go through these checks should be a cause for suspicion. The absence of a physical office or an unverifiable address also shows illegitimacy.

No Loan Agreement: If the wedding loan provider is simply promising to offer a wedding loan without any written loan agreement is a fraud. A trustworthy lender will always provide a loan agreement defining clear terms like loan amount, repayment schedule etc.

What to do in case of scam in wedding loan offers

As soon as an individual becomes aware, that he has fallen into the trap of some unlicensed money lenders, it is advisable to stop all communications and report this to the appropriate authorities about this incident. A borrower should also inform his relatives, friends and neighbours about this incident to make them aware of this scam.

Conclusion

Weddings are perhaps one of the most important events in one’s life but also they can be expensive. An individual should consider these signs like upfront payment, no loan agreement etc. to escape the trap of fraudulent lenders.

Always borrow money from a licensed moneylender. Power Credit, for example, which is good at money lending in Tanjong Pagar, is a reliable licensed moneylender. You may distinguish between a licenced and an unlicensed money lender in Singapore by looking at the following characteristics:

No legal paperwork

You must receive a loan contract from a licenced money lender in addition to the necessary legal paperwork. The payback time, available payment methods, interest rate, and any other information that can have an impact on your loan in the long run are all clearly stated in their terms and conditions. You won’t receive a loan contract or clear terms or conditions from an unauthorised moneylender. Arrive in Safety and Style with our Luxury Car Service in Charlotte NC.

Loan Limit

Loan amounts for secured loans are not capped. Personal loans in Singapore, for example, have a borrowing limit that is determined by your yearly salary. These restrictions must be followed by authorised loan companies. Your borrowing capacity is unrestricted from unlicensed money lenders. You have complete borrowing freedom.

Loan Fees

Since October 2015, Singapore’s licenced money lenders are limited to charging the following fees:

• A penalty of no more than S$60 per month of late repayment
• A fee that isn’t more than 10% of the loan’s total principle when one is approved
• If the licensed moneylender’s claim to recover the loan is successful, the court will mandate legal fees.

These guidelines must be followed by all licenced money lenders in Singapore. On the other hand, there are no restrictions on unlicensed money lending in Singapore. Even before they issue the loan, they request the security deposit and GST for the loan processing cost. 

Excessive Interest Rates

The Ministry of Law permits registered moneylenders to only charge 4% interest on loans, maximum, per month. Additionally, the interest rate is determined by how creditworthy the customer is.

On the other hand, unregulated money lenders impose absurdly high interest rates and late payment fees. They may also ask you at any moment to cover other unstated expenses like processing charges and other small payments.

Advertisement Methods

Only three channels may be used by Singapore’s licenced payday lenders to advertise:

• Directories for consumers or businesses
• Websites owned by the regulated lender
• Advertisements shown within or outside the licenced money lender’s business property.

Be careful if you receive loan promotions through other media, including fliers, text messages, emails, and/or other media. Either they are using unlicensed money lenders or licenced money lenders who have broken the law.