Licensed money lender offer quick loan approval, and can be a good alternative to banks if you need cash urgently. They also offer competitive interest rates and loan repayment terms. However, it is important to do your research and shop around before choosing a licensed money lender. Licensed money lenders must also be compliant with the laws and regulations of Singapore. They must clearly explain the terms of a loan and all fees charged to borrowers. If you come across any money lender that does not follow the law, it is best to avoid them.

The maximum interest rate that licensed money lenders can charge is 4% per month. They should also disclose all fees and charges in their advertisements and marketing materials. They must also inform borrowers of the maximum loan amount they can lend, and the minimum income requirements. In addition, they must allow borrowers to check their credit score before granting them a loan.

Some of the common personal loans that licensed money lenders offer include debt consolidation, mortgage refinance, home renovation loan, and foreign worker loans. They may also provide small-dollar loans for medical emergencies and funeral expenses. Licensed money lenders usually have less strict credit requirements than banks and can offer flexible loan terms, such as longer repayment periods or a lower minimum income requirement. They can also be more flexible in their loan approval process and can relax credit constraints for applicants with poorer credit ratings.