February 6, 2020 Last updated February 6th, 2020 75 Reads share

How to Stay Away from Loan Sharks

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Managing your budget may now and again give you a difficult time yet it simply takes a whole lot of effort and will. Nonetheless, in case you see that you are having a hard time making ends meet, you may constantly favor having a personal loan in which you have the choice to pay it in installments and budget your money each month. 

This will come up with the obligation to pay your monthly dues so you might not have to deal with a hard situation with your finances. Moneylenders are very bendy with alternatives that their customers are looking for. 

They can offer a whole lot of loan packages so as to be supplied to their clients a good way to in shape their desires and their budget. Having a personal loan will educate you to be more careful with how you spend your cash.

What Are Loan Sharks?

Loan sharks are typically entities that require huge interest rates much more than the standard rates that is mandated by the law. Their funds typically come from unknown sources and they function in miccle class profit neighborhoods or even online. Loan sharks usually might not require collateral from borrowers,  they just require them to sign documents as proof of their loans.

Ways To Identify a Loan Shark:

Below are some things to think about before you fall into the bait of loan sharks. It is also recommend that if you will consider getting personal loans from illegal lenders, please check out GM Creditz first before you get into trouble with loan sharks.

  • Analyze their Rates
  • You might be in big need of emergency cash loans but no matter how tempting it is, do not fall easily to the lenders that gives huge interest rates.. Most of the loan sharks will sugar coat the deal telling you they have easy cash releases if you agree to their preferred interest rate. This is the usual technique of most of the loan sharks because they know that you badly need money and you are desperate to get funds for your needs. With their deal, you might be able to get what you need and fix whatever it is that you need to pay but repaying the money may give you a hard time and leave you with nothing.
  • No credit checks needed
  • Rigid credit history checking from banks and other legal money lenders is probably the main reason why people do not want to apply for personal loans, this is mostly why they opt to choose to borrow from loan sharks without thinking of the consequences that it might bring them. Loan sharks will not require a credit check and they will process your loans without collateral that is easier than those of the legal ones.
  • Nothing much is required 
  • In most of the legal money lenders, you are required to submit documents that will be processed for you to be approved for a loan. They need to validate the documents and make sure that you are a person that is capable of repaying your loans. Loan sharks will not require you to submit documents and other requirements for them to give you the money that you need. They will just offer you the amount of money that you need, sometimes more than that, and then give you their interest rate that might someday leave you bankrupt.
  • Their terms and conditions are indefinite
  • There will be a scheduled repayment time and date that is agreed upon however, sometimes, loan sharks will collect money from you even before the scheduled time thus giving you a hard time to repay. It’s as if they will collect money from you whenever they want to when the agreement does not seem to be like that.

What to Do When You Encounter a Loan Shark

It is very advisable not to deal with loan sharks and if you encounter one that is offering you a too good to be true loan package, you can do these things.

  • Investigate whether they are legit or not.

It necessary to research the lenders that you are dealing with. You can check online if they are legit as well as go to the government agency that handles loan companies. There are a lot of illegal loan operators who will give you the best deal without you knowing that you are dealing with the bad guys. Always make sure if the lender is operating legally or not. They ought to also have a lending license issued by the Singapore government. If those are lacking, this is a red flag that is why it is excellent you prevent all different transactions from them.

  • Keep Calm

You should always be calm when you discover that the lender you are dealing with is not legit. Plan things for them not to victimize you and make sure they will be reprimanded with what they do. Do not let them know that you are aware that they are operating illegally. 

  • Coordinate With Authorities

Contact authorities as early as you feel that they are illegal. Coordinate what to do and set a plan to have them arrested. The deals of loan sharks go in opposition to the Singaporean law that is why the subsequent logical move is to communicate them to the authorities. Let them recognize who the unlawful lender is as well as the ways of how they operate. If you have evidence of the previous transactions made with a loan shark, this will definitely help with the investigation process. Make sure that you let authorities know everything that you know about these illegal money lenders.

  • Discontinue Paying Them

If you already have a deal with them by the time of your discovery of them being illegal, do not further pay them the amount of money that they are asking and report them to the authorities so that they will be punished for being so greedy with money.

 

shady businessman -DepositPhotos

Christine S

Christine S

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