Licensed moneylenders are regulated by the government to ensure they provide fair and responsible lending services. Before you apply for a loan, compare the interest rates and fees charged by different moneylenders to find the one that best suits your financial needs. Typically, a licensed moneylender will only charge late payment fees and service fees that do not exceed 10% of the total loan amount. They are also not allowed to make any misleading or false claims in their advertising materials or on their website.
To verify whether a moneylender is licensed, check with the Registry of Moneylenders or visit their office to see their license certificate. If they refuse to show you their licence, it is likely that they are loan sharks.
It is important to choose a licensed moneylender that offers a wide range of financial products and services so you can meet all your borrowing requirements under one roof. This will save you time and effort as you won’t need to apply for loans with multiple moneylenders. Moreover, a single moneylender can help you compare different loans and pick the best one to suit your needs.
Lastly, it is also a good idea to choose a licensed moneylender that practices responsible debt collection and does not harass or intimidate borrowers. A legitimate debt collector will never send you any SMS messages or emails and will not damage your property to force you to pay your loan. If you have been harassed by a debt collector, report them to the Registry of Moneylenders immediately.