There are many loan sharks in Singapore. One can always get legal licensed lenders in Singapore. However, some people still opt for loan sharks. Now many of our readers may not know about loan sharks. Thus, we are here to help you with everything you need to know about them and to get rid of their harassment in 2022. Stick together with us till the end of the article to know everything about these loan sharks.
The loan sharks are basically people with huge financial backing who prey on people suffering from financial difficulties. Once someone agrees to sign their contract, the dark side of the sharks surfaces gradually.
Loan sharks will lend you any amount.
To get a loan from these people, a borrower should show them their documentation and other proofs like payslip proofs, income tax statements, etc. Primarily, you have to show them anything that can confirm you have a job, and you can repay your lent amount. If you see someone agreeing to give you any amount without checking the documents, that person can be a loan shark.
They keep high charges and unreasonable rates of interest.
For any offers that sound too good to be true, you should back up and think because that offer might be coming from a loan shark. However, their offers will always have higher interest rates. A licensed moneylender can charge 4% for every month if the loan is repaid late. However, the loan sharks do not have that issue. They decide their charges and interest rates.
Do not offer a loan contract.
The licensed moneylenders will always offer you a contract. They will ask for your identity, monthly income, residence, and more. However, the loan sharks will never ask you any of these things. They are not licensed moneylenders, and they are illegal. So, the debtor’s safety is never guaranteed. Also, the sharks may come down to applying to illegal resorts to get their money back.
Charges hidden fees
Loan sharks might charge hidden fees as well. Once the sharks have loaned you any amount, they can always insert hidden charges in the contract to make the best profit out of your deal.
The harassments: how to get rid of them
Loan sharks are going to disturb you on the late repayment or any other aspects. These harassments are often illegal, and many people cannot get out of them because they do not know the right ways to do so. So, here are some tips to help you get rid of their torment in 2022.
· Never make any further payments to these loan sharks
Loan sharks charge exorbitant interest rates. This racks up the borrowed money in a shorter time span. This is illegal as the Singapore government has set limits on monthly interest charges of the moneylenders to 4%. Stop paying any more repayments to these loan sharks.
· Secure the personal information that you have given them
One of the signs that you are dealing with a loan shark is when you have provided the most important personal information to the lenders. So, if you have already shared any of your personal information with these loan sharks, make sure you are securing them as well. Try to change most of them as soon as possible. The illegal moneylenders can use these documents to harass you. So, make sure you have changed the information you have given to these people.
· Report the authorities
The next step is to deal with the harassment. You should find a nearby police post and report the sharks. This way, you can be protected from their harassment. If you are in fear of getting out of your house, you can always call the police at 999 to get further assistance from the authorities to deal with your condition.
· Do not give in to their threats.
The loan sharks will threaten you and will use vandalism. You should try not to give up on their threats. You should try to let the authorities dial the loan shark Singapore contact number and deal with them only as you avoiding contact with the sharks will bring them further violence.
· Keep safety sprays or sticks while going out.
The people working under the wings of the loan shark might start stalking you even for a one-day delay in repayments. However, we cannot stay inside our houses 24*7, right? Therefore we will ask you to always have some safety sprays like pepper sprays or sticks for your own safety. Also, let the authorities know about your location and others.
These are some ways you can avoid loan sharks in Singapore. The limits of interest rates in loans in Singapore are very nominal. Therefore, we will suggest you opt for licensed money borrowers instead of these loan sharks. Know how licensed lenders in Singapore can help.