In recent months, we hear an increase in illegal money lending activities. These people or groups are commonly referred to as loansharks.
How do you know if they are a loan shark?
Loansharks commonly will contact you via the following methods:
- Cold calling
The reason as to why they choose these methods is because they do not have to come face to face with you. In the event that anything happens, you will not be able to point your finger at them.
Licensed moneylenders in Singapore are not allowed to cold call or text you. In fact, legal lenders are not allowed to approach you to ask if you need a loan. So you can be certain that if anyone comes in contact with you asking you if you need a loan, they are most definitely loansharks.
Why is it bad to borrow from loan sharks?
Loansharks often promise you easy access to money and easy repayment plans. When you are in need of money, this will sound ideal. But think about it for a second. Other than your friends and family members who will provide you with such a good deal?
Loan sharks will require you to send your personal information to them. This includes your NRIC picture. A picture may not sound like much harm to you, but it has all your information on it. Your address, you date of birth etc. And you do not know what they are going to do with these.
So what happens next?
After giving them everything they have requested for, the loan shark will transfer the money to you. Sounds easy right? Nope. Think about it. There is no contract to safeguard you from anything that may happen. The terms for the loan aren’t stated. Loan sharks can claim that you have agreed on other terms. They can also insist on you paying a lot more. With no proper paperwork done, there is nothing to protect you.
Does it still sound like a good deal? Definitely not.
Doing a quick search online, you will see that there are many articles about loan sharks and what they do. They tend to threaten people by scribbling on their doors and walls. In addition, there are also cases of arson.
Even if you think that you have finished paying, they may still insist that you are not done. So what happens? Do you continue paying? If you do not, they may harrass you and your neighbours.
What if you need cash?
What can you do if you urgently need some funds?
Firstly, you can try approaching your family and friends. This is one of the best solutions as they will not charge you any interest. Furthermore, they will tend to allow you to pay it off over a period of time.
Secondly, you can also try applying for a short term loan from banks. Banks tend to offer very competitive interest rates and long repayment plans.
If you have used up all your options and still unable to get what you need, the next alternative will be a licensed money lender.
How do you know if the money lender is legal?
It is important that you visit Ministry of Law to find out if the company has an actual license.
Currently there are 157 companies holding onto a license to operate as a moneylender.
Do not look at a company website and think that it is licensed. This is because it is easy to buy and build a website. You should always verify it against Ministry of Law. Be very careful as there are reported cases of loansharks creating company website.
On the list of licensed moneylenders in Ministry of Law website, company’s office number
KBB Credit SD Pte Ltd
KBB Credit SD Pte Ltd is one of the approved money lenders in Singapore. Our license number was previously 132/2018. Right now, it is 03/2019. License number will change yearly upon renewal.
The new license number may not be reflected on Ministry of Law’s website as of today as they only update the information monthly.
Our customers know us as a reliable moneylender, providing them with cash solutions when they need it. Currently we provide installment plan loan. Interested to find out more? Visit our office at 111 North Bridge Road #01-35 Peninsula Plaza Singapore 179098. We are open everyday at 11am. For weekdays we close at 9pm and weekends we close at 6pm.
Alternatively, you can give us at call at +65 6255 6998 for any questions that you may have. Our loan consultants will be able to provide you with the answers.