Because there are too many informal channels to cheat money.
Personal loans in Singapore can basically be divided into the following three categories:
1. Personal loans from banks. The borrower must have a proper occupation and must show the company's salary slip or the income tax document of the past year. Strict exams and low interest. Borrowers can apply for a certain amount of credit card loans and withdraw cash at any time.
2. Small loan companies. The borrower's qualification requirements are not so strict, the loan approval speed is very fast, and the interest is slightly higher, with a monthly interest rate of about 1%. Singapore law stipulates that the maximum amount of unsecured loans cannot exceed 12 times of personal monthly income. The borrower is fully protected by law. The loan company shall not use illegal means to collect money, otherwise its business license will be revoked. The person in charge of the loan company may be severely punished by law.
3. Pawnshop loan. Mortgage with personal valuables
The borrower must meet the following seven conditions:
1. The borrower has full capacity for civil conduct, and the actual age of the loan due date is no more than 55 years old;
2. The borrower has no violation of laws and regulations, is healthy, and is honest and trustworthy;
3. If the borrower is an overseas student, he should have a permanent residence or other valid residence status at the lender's place before studying abroad;
4. If the borrower is an immediate family member or spouse of a student studying abroad, he should have a permanent residence or other valid residence status in the area controlled by the lender, have a fixed residence, have a stable occupation and income source, and have the ability to repay the principal and interest on schedule;
5. The borrower shall hold an admission notice or other valid admission certificate issued by the school where the student intends to study abroad;
6. The borrower shall provide property mortgage, pledge or third-party guarantee recognized by the lender. Mortgaged property is limited to property with mortgage right; Pledges are limited to securities such as government bonds, bank certificates of deposit and corporate bonds; The guarantor shall be a legal person or natural person with compensatory ability, and be willing to bear joint and several liability for repayment;
7. Meet other conditions stipulated by the lender.