Why Licensed Moneylenders Can Be A Healthier Alternative to Banks

There are times that you may be cash-strapped and urgently need to come up with some quick cash. However, you are not able to do so since your bank follows strict lending rules. Even then, you do not need to worry!

You will also not have to sell things or mortgage assets to the nearest pawn shop. By working with a licensed moneylender, you will never have to worry about needing money when faced with a minor financial crisis.

Actually, the smaller the personal loan amount a borrower needs. The higher the chances of them obtaining it from licensed moneylenders in Singapore. This article will take a closer look at how the licensed moneylenders have helped offer Singaporeans. This they have done by providing a convenient option for accessing smaller short-term loans.

In Singapore, licensed moneylenders get accredited by the Singaporean Money Lenders’ Registrar. They have to obligatorily follow all the set guidelines for lending, interest rates and service fees for them to do business.

Regrettably, the infamous representation of independent money lenders is frequently associated with mobsters and shady loan sharks. These portray them as people who will not hesitate to use vandalism or some other kind of harassment in order to get back their money.

Fortunately, legal moneylenders have reformed their image to be professional businessmen. They do this by abiding by all Singaporean lending laws. They also hire only authorized debt collection agencies to help recover their loaned money.

However, the actual USP of legal moneylenders is in their capability to offer financial help on a level that many banks. They do so by offering flexibility for obtaining various loan products. Apart from debt collection, legal moneylenders do operate on a totally different level than banks. Here is a highlight of some main benefits provided by licensed lenders that supersede lending services by banks:

  • More leniency for bad credit scores
  • Fast approval
  • Favorable for smaller loans
  • Steep rates of Interest

More Leniency For Bad Credit Scores

Most borrowers are aware that credit scores play a big role during the loan application process. Banks always will often thoroughly scrutinized them before approving. Banks will not delay to bluntly turn down your application when you have a severely damaged credit rating.

On the other hand, licensed moneylenders are way more lenient when it concerns a borrower’s credit score. The reason for this is since the amount offered in loans is rather smaller compared to those by banks. Former bankrupts might even be able to access loan facilities by licensed moneylenders, provided that they can present a discharge letter.

Fast Approval

Owing to the fact that licensed money lenders mainly offer small personal loans. Their turnaround time, as well as the loan approval process, is hugely fast-tracked. In addition, there hardly have any bureaucratic levels of management personnel who deliberate extensively over your loan request.

When dealing with a moneylender, borrowers who have their financial documents ready can have their personal loans approved in a span of thirty minutes. This will ensure that you can have the money you need to meet your urgent financial obligation.

Favorable For Smaller Loans

For many Singaporeans, moneylenders are the much-needed help for those in search for small loans. Such loan may be used for minor things such as car repairs, paying medical bills, etc. In Singapore, licensed moneylenders offer these risk-averse loans to decrease the negative effects of any unpaid debts.

By law, the guidelines for the lending limit stipulated to the licensed lenders is not more than two to four times the amount a borrower takes home each month.

Steep Rates Of Interest

Even though a large number of money lenders will insist on discussing rates only after they have met you personally. It does not imply that they are making attempts to cut crooked illegal deals. This simply on their part some form of smart business strategy. This strategy helps them bring in Singaporeans who are urgently seeking small loans without taking much time.

Since many borrowers are pressed for time as well as patience, many of them will rarely give much opposition in agreeing to the high-interest rates of 25%-30% offered by the legal money lenders. It is for this reason that it is advisable that a borrower takes the time to visit a few financial blogs to do some research. This will also help them shop around to locate the most suitable available interest rates.

Always Deal With The Best Moneylender

Before you can take out any loan it is recommended that borrowers take time to carry out thorough research. By doing this, you are better able to find suitable moneylender. One who will offer you a package that suits your needs. This also will help you choose a reliable moneylender.

Make certain that you only transact with legal and licensed moneylenders. The fitting one will be willing to accept your terms. Also, avoid signing any loan contract before you are satisfied with the terms of the offered loan. Importantly, ensure that you thoroughly read the loan requirements before you take it.

Always confirm your moneylender’s license. In doing so you will confirm the validity of their license. You will also determine whether they are operating lawfully. The license should be one issued by the Singaporean Moneylender’s Registry.

While you are doing your research, make sure that you make decisions based on the finding of your research. This is since the process will help you locate the right licensed and legal lender. Your moneylender should easily meet the above-mentioned guidelines.

Even then, the Singaporean authorities regulate the interest imposed on loans by legal lenders. This makes sure that borrowers and lenders are protected. Due to this be sure to do thorough background checks on your selected lender before dealing with them. Doing this ensures that the personal loan you take will not incur inflated interests. In doing research, you easily will get the right lender who will be willing to offer you suitable loan packages.