A licensed lender will definitely offer better services than one who’s unlicensed. Well, that’s an unpopular opinion but factual. But how do you tell whether your lender is licensed or not?

Here are some of the things to look out for:

1. Physical address

No matter how far Singapore and the world have moved in terms of technology, one of the things that will stay is an organization’s possession of physical addresses. That is why you must confirm that your moneylender has a physical address.

Regulatory bodies conduct regular audits as best practices to ensure these licensed bodies continue to offer quality and meet standards.

It may not be possible to achieve this if the organization lacks a physical address. Your lender may lack the necessary license if they’ve no physical address. Most fraudsters or unlicensed lenders lack a physical address or use a fake address to propel their hidden agendas.

This, in the end, hurts the innocent ones. Therefore, you have to watch out for those lenders without or with a suspicious physical address. This is not to mean all that lack a physical address are bad.

2. Punitive processing fees

That should be a red flag if the lender insists on punitive processing fees. Licensed lenders do not put excessive rates processing payments. It should be realistic and not another path to swindle the needy borrower of money they want to change their lives or businesses.

Regulatory bodies put a cap or set standards on how you can get a loan and at what cost. For that reason, licensed bodies do not have the luxury to overcharge their clients.

3. Unnecessarily long processes

Licensed lenders have a standard of doing things. More often than not, you’ll get the status of your loan communicated as soon as possible. That means you will have a chance to apply and submit all the requirements.

Once that’s done, the lender will review your application. After that, they will reply within no time with a yes, no, or a compromise.

If the case is different and you have to wait, you may be dealing with an unregulated lender.

4. Waiting periods

Regulatory bodies like the Singaporean central bank require their banks to have a specific limit as their cash reserve. That means that there’s no point you’ll be told there is no cash to loan to you.

On the other hand, unlicensed organizations have those seasons when they run out of cash reserves. And that means that they have to stop lending until all or most of their debts have been refunded.

This may explain why your unlicensed dealer may delay disbursing loans to you even when it’s clear you’re qualified. Well, a licensed lender is well regulated and audited to reinforce this. The result is a shorter and more specific waiting period.

5. Legal documents

Local authorities have severally held mass education in Singapore and the rest of the world. As such, you should be aware of how original and legitimate licenses look.

Legal documents should always be on display to allow clients to quickly identify them. In addition, it’s a legal requirement in most municipalities and can cost you if you do not abide.

Therefore, go for the physical display on their physical addresses to establish any licenses available. That way, you will ascertain whether your lender is certified or not.

Now, to avoid being swindled, there are always various platforms you can check for the validity of these licenses. That will keep you safe from predators out to exploit unsuspecting borrowers with no intention.