While some may feel a stigma on receiving financing from a licensed moneylender, many popular and reputable fintech companies actually hold such licenses, in order to serve their customers that are sole proprietors or partnerships, as these are not considered as corporations but individuals in some legal aspects.
Moneylenders are included to ensure different types of credit profiles are well served - As different types of lenders tend to focus on serving different risk or SME profiles.
Another reason we do so is to ensure users get directed to licensed moneylenders instead of risk turning up at an unlicensed one. Licensed moneylenders also help ease the funding gap by at times offering lower loan amounts, faster processing times and relaxed eligibility criteria. Unlike unlicensed moneylenders or loan sharks, licensed moneylenders are heavily regulated by the law on various aspects of their dealing with you. In Singapore, there is a very comprehensive framework to protect borrowers. From a cap to how much fees and interest, they can legally charge, to explaining the terms of a loan to you in a language you can understand and providing you with a copy of the loan contract. Such laws are introduced to transform the industry and to allow them to play a role in the credit ecosystem. We will also with the feedback from our customers, make continuous adjustments to our list of Financing Partners, ensuring your experience using our platform will continue to be a fruitful one. To better understand how to differentiate between an unlicensed and licensed moneylender & their obligations, you can also visit the Ministry of Law’s website to find out more -https://rom.mlaw.gov.sg/information-for-borrowers/guide-to-borrowing-from-licensed-moneylenders-english/