Avoid Unlicensed Moneylenders: How to Identify Licensed Ones

It’s important to know the signs of licensed moneylenders, so you don’t get swindled. Unlicensed moneylenders often charge sky-high interest rates and have no restrictions on who they lend to.

QV Credit is the way to go if you’re looking for a reliable licensed moneylender in Singapore. You can learn more about QV Credit and its loan services through this link: https://qvcredit.sg/.

If you want to avoid unlicensed moneylenders, it is important that you know how to identify licensed ones. This article will discuss strategies for identifying licensed moneylenders so that you can avoid unlicensed ones instead.

What are Licensed Moneylenders?

Moneylenders are starting to become a popular option for those looking for short-term loans. This is because licensed moneylenders have lower interest rates and more relaxed borrowing requirements as compared to banks. There are two types of moneylenders in Singapore – licensed and unlicensed.

There are many licensed moneylenders in Singapore, and licensed credit companies are regulated by the Monetary Authority of Singapore (MAS). Licensed moneylenders must comply with a set of conditions to make sure they provide their services ethically. This includes:

  • Not engaging in criminal behavior or activities
  • Being transparent about charges and fees
  • Abiding by fair terms for repayment plans

On the other hand, unlicensed moneylenders do not have to adhere to any of these conditions. In fact, they are often known for charging exorbitant interest rates and engaging in unethical practices.

What are the Signs of an Unlicensed Moneylender?

A few key signs can help you identify an unlicensed moneylender. Firstly, unlicensed moneylenders usually don’t have a physical office – they will usually operate out of their homes or through online platforms. Secondly, licensed moneylenders will always prominently display their license number, while unlicensed ones will not.

Thirdly, licensed money lenders typically require borrowers to provide documents such as payslips and identity cards to prove that they can afford to repay the loans. Unlicensed moneylenders, however, often require unnecessary documents such as employment letters and payslips from previous employers to lend you a loan. 

Lastly, licensed moneylenders will also have reviews online, which can help you gauge their credibility – unlicensed ones do not usually have any reviews at all because they don’t operate publicly.

How Can I Benefit from Licensed Moneylenders?

In today’s time, licensed moneylenders have become a popular alternative to banks and licensed lenders. One of the top reasons for this is that licensed moneylenders offer lower interest rates compared to other options. 

In addition, licensed moneylenders often provide loans to those who don’t qualify with banks or finance companies due to their lack of credit history – licensed lenders typically do not carry out a check on previous records before lending you the loan.

Here’s how you can benefit from moneylenders:

They have a wide range of loan services

One of the benefits of licensed moneylenders is that they offer a wide range of loan services. This includes:

  • Personal loans: When you need money for a personal expense such as a wedding, renovation, or travel.
  • Business loans: For those who need to finance their business venture.
  • Education loans: To pay for your child’s tuition fees or other education-related expenses.
  • Payday loans: If you are short on cash and need money urgently.
  • Car loans: To finance your car purchase or to get a lower interest rate on your current loan, you can check out auto loan rates from Space Coast Credit Union.
  • Foreigner loans: For those who need money to fund their business or studies.
  • They offer lower interest rates.

They have relaxed borrowing requirements

Another benefit of licensed money lenders is that they have relaxed borrowing requirements as compared to banks or licensed credit companies. Licensed moneylenders will not usually check your credit score or employment history before lending you the loan.

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They have lower interest rates than other options

Licensed money lenders typically charge lower interest rates than unlicensed ones. In addition, licensed moneylenders often provide installment plans which can help borrowers repay the loan without any added stress.

Quick processing time

When applying for a licensed moneylender, you can typically get the loan approved and processed within one day. This is because licensed moneylenders usually offer quick online services which allow borrowers to apply from anywhere in Singapore.

Ethical borrowing practices

Another benefit of licensed money lenders is that they abide by ethical borrowing practices. Licensed moneylenders are required to disclose all charges and fees before the loan is approved, and they also do not engage in criminal behavior or activities.


The Ministry of Law licenses a licensed moneylender to lend you a loan. Licensed money lenders are licensed under the Money Lenders Act, making them fully accountable for their actions and providing them with certain protections. This means that licensed moneylenders must abide by strict lending rules – this ensures fair practices across all licensed moneylenders in Singapore.

If you want to avoid any complications in borrowing money, it would be best to avoid unlicensed moneylenders. This is because unlicensed moneylenders tend to charge excessively high-interest rates and do not abide by any legal or ethical standards.

Unlicensed moneylenders are also unregulated, which means that their services cannot be trusted – licensed lenders operate within a strict framework to ensure fair practices across all licensed moneylenders in Singapore.

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