Is money with loan shark safe?
Have you ever seen those quick money ads without SPC / Good Finance guarantor or consultation pasted on streetlights or bus stops?
They are moneylenders, people or companies who offer money illegally with the promise that you can apply for a loan quickly and for those who have a dirty name. As this is not a legal practice, there are several risks for borrowers borrowing money, see below the main ones:
How does the loan shark make money?
At first, a loan shark is a criminal who says that he will lend money, in advance and under abusive fees. Because it is not a legal and regulated practice, it is a person who is not affiliated with any serious company that says it will lend money to another.
Usually the victims are people with CPF restrictions, who seek high values and have not been approved by the bank. The loan shark asks for an advance amount (on average $ 300) to release his loan. However, asking for this advance deposit is illegal and does not guarantee anything that you will receive your loan.
With the loan shark there is no guarantee of borrowed money
As this is not a regular practice by the central bank, there is no guarantee that you will have the money in your account . Thus, with the promise of “no consulting SPC” , you and your data are unprotected.
There is no assessment of your credit profile, a serious lender or reliable banks lending you, but a fraudster, a bad person. Even if they ask you for an advance deposit, that money is no guarantee that the money will be deposited in your account.
Loan sharks risk your personal data
Being fraudsters, these people have access to your personal data and sensitive information. When you hand over your social security number, proof of residence and income to the loan shark, they may use this information to your detriment.
Interest rate with the loan shark
In addition to illegally charging upfront to release your loan, loan sharks charge interest rates without any discretion. When financiers and banks practice around 15%, loan sharks practice rates above 80%. As it is not a regulated practice, fraudsters abuse the lack of information they believe that loan sharking is legal.