Loan Sharks in Singapore: Here is What You Need to Know about Them
Loan sharks, also known as “ah longs” are unlicensed moneylenders in Singapore and they are infamous for their harassment tactics. In television, they are depicted as blood-like red paint splashed on house doors. While the Singapore government has indicated that it is illegal, even for citizens to borrow from loan sharks, they still continue to flourish.
If you want a loan in Singapore, make sure to only deal with legit lenders. One way of getting this assurance is using loan comparison sites. So, here are five things that you need to know about ah longs in Singapore.
They Offer Loans through WhatsApp, SMS, and Emails
Today, most loan sharks in Singapore are going digital, which they consider a better way for covering their identity and preventing easy identification. For example, you might find them floating ads on WhatsApp groups or making cold calls to look for new clients. Do not fall into their tricks because they can easily plunge you into a cycle of continuous debts that is very difficult to get out from.
If you suspect that the lender following you through emails or sms is a loan shark dealer, the best thing is to notify the authority. Do not engage with loan sharks in any way – run away as fast as you can!
Loan Sharks Charge very High Interest-Rates
When loan sharks advertise their loans, what is presented to the target is something very attractive, but this is not the whole story. You might be told that the interest rates being offered will be less than what conventional banks offer, but they include so many hidden charges. At the end of the day, the loans they offer end up being very expensive.
Insist on getting the actual interest rate and if you find it higher than 4%, the chances are that you are dealing with a loan shark. Remember that you can get loans with reasonable interest rates by comparing them at Lendela. See, why risk paying more working with an essay shark as opposed to using a legal lender through Lendela for lower rates.
Ah Longs Always Ask for Administration Fee before Approving Loans
When licensed moneylenders get applications from interested borrowers, they do not ask them to pay. Why ask a person who is looking for money to pay? Instead, they focus on your qualification, and if you do, charges are pooled together with the monthly payments. This implies that you will pay the administration fee alongside the principal and interest.
So, if you hear a lender who is indicating that approval of the loan is only possible after paying a specific fee, such as admin charges, that is likely to be a loan shark. So, you better walk away and look for licensed moneylenders through Lendela.
Loans are Approved Remotely
Although this is the digital age, no loan is signed online. Once a loan is approved, the legit lender has to get a face-to-face meeting when the loan is being signed. This helps the lender to confirm more details and ensure that the borrower understands the details of the loan requirements. If you are dealing with loan sharks, they approve loans remotely and require you to repay remotely too.
Loan sharks are like a beast waiting to torment you and make life unbearable. Therefore, you should avoid them at all costs. If you notice a lender with any sign of a loan shark, it is advisable to stay away. Instead, you should visit Lendela site because they only work with licensed lenders in Singapore when borrowers are applying for loans in Singapore.