There are several money lenders in India ready to offer you financial assistance whenever you face emergencies. You can turn to them for loans to cater for any of your needs. All money lenders are unified under the Moneylender's Association of Singapore. It is the only
association that is officially registered to represent all the money lenders in the country.
association that is officially registered to represent all the money lenders in the country.
They are required to calculate and disclose the interest rate of the loan before granting the requested loan to you. They are expected to compute your effective interest rate depending on your annual income. If your monthly net income is categorized below Rs 20,000 they are expected to charge an estimate of 13 % for secured loans and 20 % for unsecured loans. For those with a monthly net income of Rs 20,000 the interest rates have to be agreed upon between the lender and the borrower. The effective interest rate has to cover the effect of installment frequencies compounded over one year.
The law requires them to subject the lender to 6 different types of fees depending on the nature and repayment of the loan. Below are occasions that can subject you to certain fees.
- Cases of late repayment of interest.
- Legal costs required during recovery of the loan.
- Charges due to a dishonored check that you issue out.
- Charges due to unsuccessful GIRO deductions from the bank aimed as a payment to your lender.
- Charges due to a request to vary the loan contract by the borrower.
- Charges due to early termination or redemption of the contract with your money lender.
Your lender should not expose you to other types of charges except these since they are the only ones approved in Singapore.
Before borrowing any money from lenders in India you have to confirm whether they are licensed. You can always find a list of the licensed money lenders from the Moneylender's Association. However without checking out with the association you can also access their legality from the way the lender behaves. Below are some of the behaviors that will prove that your lender is possibly serious and legal.
- Cautious and friendly whenever you visit them for assistance.
- Get back to you all your personal identification documents once the agreement is signed.
- They ask you to sign on a complete and detailed contract covering all the requirements of the loan.
They grant you the loan as well as a copy of the contract you sign. They also explain to you the details on the contract so that you can make your choice wisely.
They also grant you the loan while keeping to all the due diligence like confirmation messages through email and SMS among others.
They also grant you the loan while keeping to all the due diligence like confirmation messages through email and SMS among others.
If you encounter money lenders behaving negatively to the stipulated behaviors it is advisable that you be cautious with them before they extort you excessively. You should take immediate action against them to the registry of moneylenders.
Licensed moneylenders are allowed to use advertisements based on only three channels; business or customer directories their websites or advertisements around their business premises. You should ignore other forms of advertisements presented in the form of SMS flyers and email among other digital forms.
If you have any complaints regarding your moneylender you can always contact the registry for assistance. They have hotlines through both telephone and email. The registry does not disclose your details to the lender upon launching your request. At times you may be required to attend an interview with officers at the registry in order to provide more details about the problem. Errant moneylenders are always handled seriously and legal action taken against them.
Tuning to money lenders in India for financial support is an important step for emergencies. However you have to be keen to land the best money lender who will not capitalize on your problems and get you into debts.
