Now, this is where personal loans come in handy, but for some people, they may not have access to this avenue due to a poor credit rating.
Desperate times call for desperate measures. When people are desperate to raise money urgently and are unable to do so through legitimate financial institutions with strict regulations, they will usually borrow other sources. But before you decide to take up the loan from these sources, there are some types of loans that you should be wary of lest you land yourself in even greater debts than before.
Predatory Lending – Loan Sharks
This group of moneylenders, typically known to Singaporeans as “Ah Long”, is loan sharks that use unfair, deceptive or fraudulent practices to entice borrowers in desperate need of cash. Loans sharks usually target people who are ineligible for loans from legitimate sources, such as banks, due to their bad credit rating.
In an attempt to find ways to get in touch with borrowers, they will advertise aggressively through ads on public transport, and even online platforms. They will usually try to be friendly with you at the first meeting. But once you accept a loan from them, their behaviour will change drastically, and they will start hounding you for repayment. Since loan sharks do not follow the law, they will charge you exorbitant interest rates that will leave you in a much larger debt at the end of the day. The best advice for dealing with loan sharks is: Don’t.
Predatory Lending – Loan Sharks
This group of moneylenders, typically known to Singaporeans as “Ah Long”, is loan sharks that use unfair, deceptive or fraudulent practices to entice borrowers in desperate need of cash. Loans sharks usually target people who are ineligible for loans from legitimate sources, such as banks, due to their bad credit rating.
In an attempt to find ways to get in touch with borrowers, they will advertise aggressively through ads on public transport, and even online platforms.
