Everything you need to know about Loan Shark Singapore
In times like this, it may be tempting to turn to loan sharks for a quick fix. However, borrowing from loan sharks in Singapore can make way for consequences that can cause you even more problems.
Although borrowing from an ah long may seem like an easy solution, it’s a trap that’s almost impossible to escape. By understanding the disadvantages a loan shark Singapore poses, you can make wiser choices that protect your financial security and peace of mind.
Here at OMY Singapore, you’ll discover:
Loan Shark Singapore Explained
Loan sharks in Singapore are illegal moneylenders that offer high-interest loans to individuals who are unable to secure financing from traditional banks or licensed moneylenders.
These loan sharks operate outside of the law and use aggressive tactics to collect repayments, including threats, harassment, and violence. A loan shark Singapore usually target vulnerable individuals such as the elderly, low-income earners, and individuals with poor credit ratings.
Signs You’re Dealing with A Loan Shark Singapore
Take a look at the possible signs that you may be dealing with a loan shark Singapore:
They approach you through SMS or illegal advertisements
Legitimate lenders will not send unsolicited messages to borrowers because it is not permitted by the law. However, this practice can be observed with a loan shark Singapore who often sends messages that urge individuals to apply for a loan immediately. Furthermore, any loan shark advertisement you see through internet pop-ups is illegal.
They don’t ask about your repayment capabilities
If a loan provider does not ask about your ability to repay the loan, it’s a red flag. Legitimate banks and financial institutions always ensure that you have the means to pay back the loan before lending you money. However, an ah long is only interested in making a profit from the high-interest rates they charge.
They require you to sign over your personal information
If you are asked to sign over your personal details, such as your NRIC, SingPass, CPF contribution statement, or bank login details, it’s a sign that they are a loan shark Singapore. This information can be used by a loan shark Singapore to harass you in the future.
They don’t have an office
Legitimate loan providers are required to have a registered office and display their licence number on their websites and advertisements. A loan shark Singapore often operates from makeshift offices which will make it difficult to track them down in case of disputes.
They have unreasonable repayment terms
Loan shark Singapore usually sets unrealistic repayment terms that are impossible to meet. This can lead to a vicious cycle of debt.
They charge extremely high-interest rates of more than 4% per month
Loan sharks are notorious for charging exorbitant interest rates that can go above 4% per month. Over time, this can add up to a substantial amount, and before you know it, you may find yourself struggling to keep up with the payments.
They offer to lend you more than what you can afford to pay back
When you are offered to apply for a loan amount that is too high (more than 6x your monthly salary for an unsecured debt), it could be a sign that they are a loan shark Singapore.
These illegal loan providers are not concerned about your financial well-being. They may offer you more money than you need, knowing that you cannot afford to pay it back and will be forced to borrow more money to cover the initial loan.
They don’t make you sign any contract
A contract protects both the borrower and the bank/financial institution by outlining the terms and conditions of the loan. Without a contract, a loan shark Singapore can change the terms of the loan at any time and make it hard for you to prove what was agreed upon. This can lead to misunderstandings and even more financial troubles down the road.
Possible Consequences Of Borrowing From A Loan Shark
We’ve outlined some possible consequences of borrowing from a loan shark Singapore:
High interest rates
One of the most immediate consequences of borrowing from a loan shark Singapore is the exorbitant interest rates that they charge. As mentioned earlier, these interest rates can easily surpass 4% per month. Some loan sharks even charge up to 20% per week. This is significantly higher than what licensed moneylenders and banks charge.
May lead to Singapore loan shark harassment
Loan sharks often use aggressive tactics to collect repayments, including physical violence, property vandalism, and threatening behaviour. They may also employ intimidation tactics such as threatening to harm borrowers’ family members or loved ones if they do not make payments on time. This loan shark harassment Singapore can be traumatising for borrowers and their families since it puts their safety at risk.
Loss of personal information and identity theft
A loan shark Singapore may require borrowers to sign over their personal information which can then be used for illegal activities, such as identity theft or fraud. Even if they paid back their loan, borrowers may still find themselves at risk of having their identities stolen, putting them in a vulnerable position that can take years to recover from.
Can’t build your credit score
Since loan sharks do not report to credit bureaus, borrowing from them will not help you build your credit score. Even if you manage to pay back the loan on time and in full, you will not see any improvement in your creditworthiness. This can be a disadvantage if you need to borrow money in the future from legitimate loan providers.
How To Deal With A Loan Shark Singapore
If you find yourself in a situation where you have borrowed money from a loan shark Singapore, there are several things you can do to protect yourself and get out of the situation.
Never give them access to your ATM
When you realise that you have encountered a loan shark, it is important to take immediate action to protect yourself. The first step is to cut off all contact with the loan shark Singapore and never give them access to your ATM or bank details.
Change your contact information
Loan sharks may use aggressive tactics to collect repayments, such as constant phone calls and text messages. Consider changing your contact information, such as your phone number or email address, to prevent them from reaching you. It’s also recommended to change your online bank account passwords and ATM PIN.
Stop making payments
If you have been borrowing from a loan shark Singapore, stop making payments as soon as possible. This may seem counterintuitive, but continuing to pay the loan shark will only perpetuate the cycle of debt and give them more power over you. As much as possible, do not answer any calls made on your phone if it is from a loan shark Singapore contact number.
Call the police
If you feel unsafe or threatened in any way, do not hesitate to call the police. Loan sharks are illegal in Singapore, and the police can help you take legal action against the loan shark. Authorities can also offer you protection and support during this difficult time.
Additionally, make sure to call 999 or dial the X-Ah Long hotline at 1800-924-5664, or report to the Registry of Moneylenders at 1800-2255-529. All your need to do is provide the loan shark Singapore contact number.
Better Alternatives Are Available
While borrowing from a loan shark Singapore can be tempting in times of financial distress, remember that there are better alternatives available. Banks and financial institutions offer a variety of loans and credit options, including personal loans, credit cards, and debt consolidation loans. These options come with lower interest rates and are designed to help you manage your finances and improve your credit score.
Don’t fall prey to loan sharks and their harmful tactics.
