Thanks to technology, we can now transfer money from bank to bank through online banking apps and make payments using an e-wallet without taking out physical cash! Included in the era of cashless transactions are the online loans in Singapore.
But beware! Although they offer easy and convenient credit applications, some are actually urgent cash loan scams in Singapore.
Here are the red flags of dubious online loan scams:
1. Unregistered lender
Financial institutions, such as banks and moneylenders, are registered with specific governing bodies and regulatory boards in the country before they can operate.
If your lender lacks registration, it is time to walk away from that lender.
2. Lenders contact you
How do money lenders offer their services? They advertise personal loan offerings in Singapore through social media, newspaper, TV, and radio ads.
It is a red flag when the money lender calls or messages your contact number, email you and visits your house to offer loans.
3. The lender does not care about your credit history
All financial institutions, except for friends and relatives whom you can borrow money from, double-check your credit history.
The credit history guarantees if you are a good or bad borrower. A scammer grants you a payday loan in Singapore despite terrible credit records.
4. There are upfront fees
Online loan scams require the borrowers to pay a certain amount or buy prepaid credit cards and gift cards for “upfront fees” before approving the loan application.
A reputable money lender doesn’t require you to pay for such things.
5. The lender pressures you to get the loan
People who need an urgent cash loan in Singapore fall for these frequently. Dubious money lenders pressure the client to get the loan by setting an immediate deadline for the loan application, telling you the loan will expire, and threatening you with a lawsuit if you choose not to pursue the loan.
Identify these red flags next time you apply for online loans in Singapore
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