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Unlicensed moneylending (UML) is when an unlicensed individual, often called an ‘Ah Long’ or loanshark, lends money to another individual. UML is dangerous due to the unregulated harassment methods these loansharks often use to chase debts.
A loan shark is a person who offers loans at extremely high or illegal interest rates, has strict terms of collection, and generally operates outside the law, often using the threat of violence or other illegal, aggressive, and extortionate actions when seeking to enforce the satisfaction of the debt.
- Offer Loans Via SMS, WhatsApp, Flyers, And Emails. Nowadays, loan sharks in Singapore are moving towards non-confrontational tactics such as social media, phone applications, emails, flyers, cold calls, and SMS to harass borrowers and solicit new borrowers.
- Charge Higher Than 4% Interest Rate Per Month. Just like sharks, “ah longs” plague distraught borrowers with their outrageous interest rates and hidden charges.
- Ask For A Loan Processing Fee Before Approving Your Loan. Be wary if you’re asked for a loan processing fee, also known as an admin fee, before your loan is approved.
- Approve Loans Remotely. Since we’re living in the digital age, it’s common to submit applications online. There are licensed moneylenders that process and approve your loan applications digitally, but they are required to do a face-to-face verification and go through the loan terms in person, after approving your application.
Oct 23, 2020 · Unlicensed money lending is thriving amid COVID-19, as some people face financial difficulties and limited options. The article explores the factors that drive borrowers to seek loans from loan sharks, and the challenges of regulating and preventing such activities.
Jul 26, 2023 · What Are Loan Sharks? Loan sharks are as predatory as their name suggests. They’re illegal money lenders that prey on vulnerable, often desperate individuals looking for quick cash. Often, these same people are attracted to loan sharks because of the lack of red tape.
- While loan sharks are illegal, unknowingly borrowing money from them isn't considered a crime. If you're facing threats and other forms of harassme...
- Loan sharks get their money from unidentified sources. They often work for personal businesses or unlicensed entities.
- Loan sharks tend to lend high sums of money with high-interest rates. They can charge far beyond the regulated rate, which goes into their pockets.
- Loan sharks are appealing, especially to low-income individuals who don't have a good credit score. They won't care about the debtor's sources of a...
Jul 15, 2022 · A loan shark is a person or organisation who lends money illegally at extremely high-interest rates. It's important to understand that a loan shark is an unlicensed money lender and often resorts to intimidation and threats to recover their debts. It is an offence to borrow from loan sharks under the Moneylenders Act.
Apr 4, 2024 · Learn what loan sharks are, how they operate, and why they are dangerous for borrowers. Find out how to avoid loan sharks and explore safer alternatives for unbanked or underbanked people.
