Top 8 Reasons Why Selecting a Licensed Moneylender is Best for a Personal Loan
Bored with the traditional loan taking method which drains you from within. The licensed money lender is the solution. Licensed money lenders are private firms that offer personal loans to people. They provide personal loans at lowest rate personal loan Singapore and quick approvals. Where on one hand banking is a business which works on deposition and withdrawal of customer’s money, money lending develops and upgrades their own money.
Licensed money lenders provide all types of loans such as personal loan, wedding loan, fast cash loans, short term loan, business loan, etc. they even have personalised loans, wherein you can input all your requirements and the output will be the best suited for you. There are cases where you might know the amount of money you want to borrow such as an education loan while in times of medical emergency you might not know how much money will be spent in treatment. At this stage, the licensed money lender as a friend can tell you the exact ratio of everything needed. They will do the calculations for.
Here are the reasons why selecting a licensed money lender over banks for personal loan Singapore money lender can be fruitful.
- Technology impact: there are several ways in which technology can be helpful. The task of lending money is primarily done by banks since eternity, but with upgrades in technology lending sectors have made their way. Digital and quick approvals for personal loans is what sets them apart from banks. This is the sole reason for licensed money lenders growing at a significant pace and becoming more efficient. Unlike banks, they provide personal loans with minimum paper works and efforts and proved to be beneficial for small businesses and start-ups.
- Loan tenure, amount and procedure: licensed money lenders lend money on a short term tenure to people in an emergency, hence the amount of money is comparatively smaller. While on the other side, the lengthy process of banks will take more time but is for the long term and thus provide you with more money. This might seem fascinating but, more money comes with higher interest rates for a long tenure.
- Licensed money lenders are authorised by the government: if you feel that lending money from a money lender can be suspicious, then you must know that all the licensed money lenders work under The Money Lenders Act authorised by the government of Singapore. They have to abide by keeping the privacy of borrower’s details, not harming their payments, maintaining decency and not threatening them for their cause of emergency or not forcing them to lend money. Instead, they have to be answerable to the government officials if they are caught posing higher interest rates, exceeding time limits and not giving the desired money to the borrower.
- Rules under which licensed money lenders live :
- They cannot ask a borrower to pay more than 4% interest rate.
- The late fees should not exceed the limit of $ 60 per month.
- No more than 10% is allowed for administration fees.
- They can’t force customers to buy loans.
- Evaluating information: while licensed money lenders maintain the confidentiality of their customers, they do manage their privacy as well. If you go online to check their interest rates, probably you won’t find them, as they don’t disclose it online. It would be better if the interest rates are shown online, which makes the process of comparison between banks and lenders or one with another lender easier and hassle-free.
- Look for experience: it is not at all necessary for you to know how much amount you need to borrow. In such a scenario, a licensed money lender will be always there to guide you through the process. There have been instances where the lender himself has chosen the amount for the borrower to borrow. But how does a money lender decide the amount needed in a particular phase? Experience. Financial experts say that one should always opt for companies that are in the market for a long period of time. So that they have experience in the work that they are doing and the services they are providing to their customers. The better the experience per cent, the better the service. The better the services, the more trust you will establish in a particular company. Trusted companies don’t seem to take advantage of your situation and exploit you further, they are bound to give you care with security.
- Transparency is the key: transparency is the key to unlock the doors of trust and healthy relationships and a good money lender will never take steps that will affect this relationship. He or she will be open while discussing each and every minute step with you and consult you before taking any big decision. Any step that breaks the morality of the situation will not be taken by any licensed money lender for sure.
- Loan speciality: with various money lenders available in the market having specifications in personal loans, short term loans, wedding loans, business loans, quick cash loans, etc. Decide which type of loan you want to opt for and go with the best-licensed money lender available in the market. Since they have specialisation in a particular field, they will provide quality service. But quality comes at a rate. Make sure that you research enough to find the best-licensed money lender that provides quality at an affordable price or interest rate. Though licensed money lenders are trapped under strict rules, few using their specialisation as a weapon choose to exploit people by asking for higher interest rates, processing fees, etc.
With all the above-listed advantages that a licensed money lender provides, I am sure you will give them the opportunity they need. This time opt for licensed money lender over banks and experience better service at the best price.