In this article, we are going to talk about why a person should borrow from a moneylender if they need it urgently. Also, we are going to discuss what licensed moneylenders, the difference between borrowing from banks and lenders is.
What is a licensed moneylender?
In Singapore, a moneylender is a person which is authorized by the government to give loans out to the people. They offer a different kind of loan but mainly personal loans and money is given almost instantly. Either they will personally lend you the money or they will act as a third party. This helps the borrower to get a loan at the lowest rate of interest.
To find the best license moneylender in Singapore is a very easy process you just have to pay attention. There are many kinds of institutions in the market which act as a lender and there are also private people. To become a legal moneylender you will have to follow all rules and register yourself on the MinLaw website.
Unlicensed moneylenders or loan sharks can sometimes give you a loan according to your need. These loan sharks are not authorized by the government they are looked after by certain laws. The government has set several guidelines which these lenders have to follow to become legal. The guidelines also mention that a lender will have to take a low-interest rate from its borrowers.
They can take the processing fee but it should not exceed 10% of the total loan amount. The MinLaw will also check the different terms and conditions of a lender then allow them. These terms and conditions should meet the requirement set by MinLaw. The Singaporean government is trying everything to save the people from getting scammed and fraud. They are doing this by bringing new rules and also time to time checkup of a lender.
How to apply for a loan with a licensed moneylender?
The process of sending a loan application is very simple and easy to perform. You can either fill the form online on their website or you can to their office and fill in the documents. Most of the licensed moneylenders will take a time of up to 5 minutes to finish the processing and give money. Based on your needs or required amount they will either check your credit report or your payslip.
A licensed moneylender will also check your finance and your credit background and decided what to do. The moneylender does not refer to a person’s credit score they mainly look at their payslip. This means that even if your credit rating is bad you can get a loan from them. With a bad credit score, there is a high chance of you getting money from a licensed lender.
The process is very simple as first you have to select the lender you want to take a loan from. Then you will have to read all their terms and conditions very properly. If you don’t understand something you have to ask the lender to give information.
Then after you have read the terms and conditions you can decide whether to take the loan or not. You will then have to select the amount you want as a loan and they will tell you the rate on interest. If there is an agreement between the two parties then the loan is given to the borrower. Also, there are loan sharks, Ag Long which are names of the unlicensed moneylender. This means that the person will take the money and then they might disappear.
What type of loan can you get from a licensed moneylender?
There are different loans that you can get from a licensed moneylender. The most common loan which is given by the licensed moneylender is the personal loan. These moneylenders can provide a business loan, personal loan, wedding loan, and also short-term cash loan.
The lenders in Singapore have to follow all the rules and regulations if they want to give loans to the people. They will also give you fast personal loans in Singapore that too within 5 minutes maximum time. The process of form filling and processing and transfer of money is very short.
They have a license to lend money to borrowers but that too at certain prices. Also, they have to follow the rules and regulations to stay legal and in the marketplace. If you need a large amount of loan then a bank might be a good idea for you. That is because they can give up to 4000000 SGD of loan to a single person.
While the licensed moneylender can give you a loan of up to 1500000 SGD to anyone. You can take a loan from a lender if you have an emergency or urgent need for cash. If a lender is charging you more rate of interest than the rules then you can file a case against them.
What are the benefits of choosing the right moneylender?
There are several moneylenders out there in the market some are legal and some are illegal. Here is a list of benefits that come when you borrow money from a legal moneylender.
- You can get a loan within a day or maybe even in just 5 minutes after filling the documents.
- These lenders will give you an affordable interest rate that is suitable for almost everyone.
- Hassle-free means that you don’t have to wait for a long time for the process to get completed.
- Moneylenders are like friends and you can borrow instant cash from them but you have to repay them also.
What is the difference between lender and bank?
Here is a list of some differences between loans given by moneylenders and banks.
- Loanable amount
The loanable interest or amount is the total amount that you can take from the lender or bank. You can take up to 4000000 SGD from the bank and up to 1500000 SGD from a moneylender.
- Approval speed
This is the speed at which your application is approved or rejected by the authorities. The bank takes around 1 day to complete and moneylenders take something around 5 minutes.