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Check the License:
Licensed Moneylenders: They are regulated by the Registry of Moneylenders under the Ministry of Law. You can verify their license status on the official website of the Registry of Moneylenders.
Unlicensed Moneylenders: They operate illegally and do not have any official license or recognition from the authorities.
Look for a Valid License Number:
Licensed moneylenders should have a license number displayed prominently in their office and on their promotional materials. This license number can be verified through the Registry of Moneylenders.
Observe the Terms and Conditions:
Licensed Moneylenders: They are required to adhere to specific terms and conditions set by the Registry. They must provide clear information about interest rates, fees, and repayment terms.
Unlicensed Moneylenders: They often have unclear or unfair terms, including excessively high interest rates, hidden fees, and unclear repayment conditions.
Verify Their Business Address:
Licensed Moneylenders: They operate from registered business addresses and are listed in the official directory. They should have a physical office that you can visit.
Unlicensed Moneylenders: They might operate from unregistered or questionable locations, and they might avoid giving a proper business address.
Check for Professional Conduct:
Licensed Moneylenders: They follow professional standards and conduct transactions in a transparent manner. They provide you with a written loan agreement and a copy of it.
Unlicensed Moneylenders: They might use aggressive or unethical tactics, offer loans without formal agreements, or ask for personal details in an unprofessional manner.
Consult the Registry of Moneylenders:
For additional verification, you can always consult the Registry of Moneylenders. They can provide information on whether a moneylender is licensed and if any complaints have been filed against them.
Check Online Reviews and Complaints:
Look for reviews or any complaints about the moneylender online. Licensed moneylenders generally have a professional presence and may have some feedback, while unlicensed ones might have numerous negative reviews or complaints.
Report Suspicious Activity:
If you suspect a moneylender is operating illegally, report them to the Registry of Moneylenders or the police. This helps prevent others from falling victim to unlicensed moneylenders.
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