A Licensed Moneylender
A moneylender registered with the authorities is typically a licensed money lender.
So when looking for a moneylender, it’s important to ensure you’re dealing with such a person.
-This way, you know that the person you’re working with is legitimate and has been approved by the government to offer loans.
It’s easy to check if a moneylender is licensed. Just go to the website of the Moneylenders Bureau and search for the moneylender’s name. If the moneylender is licensed, his or her name will appear on the list.
Types of Licenses
Money lenders can be licensed in two ways: as credit providers or as credit services organizations (CSO).
A credit provider is licensed to provide short-term loans (of up to 12 months), while a credit services organization (CSO) provides a wide range of credit services, including short-term loans, debt counselling, and financial education.
The Process of Applying for a Moneylending License
Normally, applying for a moneylending license is long and arduous. But thanks to the Internet, it’s now easier than ever to get all the information you need right at your fingertips.
First, you’ll need to visit the Moneylenders Licensing Board’s website. You can find out about the application process, including what documents you’ll need to submit and other requirements. Next, you’ll need to find a licensed moneylender who can help you through the process.
This is an important step because you don’t want to work with an unlicensed moneylender—you could end up getting scammed or even worse, arrested for engaging in illegal activities.
So take your time and do your research before choosing a moneylender. And remember, it’s always better to be safe than sorry.
Checking the Status of a Moneylender’s License
It is always advisable to check if the moneylender is licensed, as most reputable lenders will be registered with the Ministry of Law, but some black sheep aren’t.
To find out if a moneylender is licensed, you can head to the Ministry of Law website and search.
Just type in the name of the company and hit “submit.” If they’re registered, their details will come up on the screen.
Well, if they’re not registered, you should reject services from that lender since they’re probably operating illegally, and that’s not something you want to get involved with.
Conclusion
When you’re looking for a moneylender, it’s important that you go with a licensed one. This way, you know that they’re following the rules and regulations set out by the government, and you’re less likely to run into any problems down the road.
In addition, you are fortunately avoiding the hassle of being swindled, arrested for engaging in fraudulent activities and generally avoiding unnecessary risk.
So next time you are looking for a viable loan, make sure to use the government’s official sites. Also, make sure to counter-check the lenders as well as their services.