First, let’s try to understand the term moneylenders. Moneylenders are the person who grants money at a higher rate of interest. The main purpose of providing at a higher rate of interest than banks is because the lenders are at a higher risk when they provide money.
There are fewer procedures as compared to the bank; also, they manage to provide instant money to the person who’s in need of immediate funds. Initially, the money lenders use to lend money without any license, but now it is mandatory to have a license so that they can work accordingly for the job of Money Lender.
Applying for a license may take a couple of months for the whole procedure Because everything is online now. Since a license has a validity period, one should also renew from time to time so that they function smoothly.
Below is the point to remember if Money lenders are applying for license in Singapore
- An individual should be of good morality and principles without any criminal background
- Should be a resident of Singapore
- Minimum age to apply for a money lender license is 21 years or above.
- The person should know all the rules and regulation, Moneylenders acts and procedures, etc.
- Should be physically and mentally fit to carry the business of money lenders
- Should mention all the valid details regarding nature of business, applicant, etc.
- License fee and applications fees should be paid online, as mentioned
- If the license has expired, one should renew it from time to time.
License is compulsory in Singapore for money lenders because they are ones who are considered to be legal. Hence to function their business legally and smoothly, it is compulsory to have license for Moneylenders.
Where To Find The Best Legal Moneylenders?
One can find licensed money lenders in Singapore both offline and online. Due to internet facility, it is much easier and convenient to search money lenders online. Also, if you want to check whether these lenders are licensed or not, you can check on the website since all the licensed moneylenders are reported and recorded under the ministry of law, and if they are not listed, that defines that they are working illegally.
Always consider borrowing money from licensed money lenders because it is safe to borrow from them. They work legally as per the procedures and explain to you each and every terms and condition. Licensed money lenders charge a rate of interest as per the market rates depending upon the purpose of the loan.
While the illegal lenders charge a much higher rate of interest without following any rules and regulation, also one can easily identify by the mindset of legal money lenders they will never be interesting to explain you the terms. If you come across these types of lenders, make sure to report them.
Make sure to read each term and condition carefully and then sign the contract.
After analysing and reviewing, choose the money lenders you want to borrow money with. Borrowing money from licensed money lenders can be considered trustworthy because they also take proper security measure, which helps to safeguard client’s personal details.
They also provide decent interest rates and make sure that their clients are satisfied with their services.
Always be cautious and don’t fall under the trap of the ones who are running this business illegally because their main aim is to earn a high rate of interest from innocent people.
Many of them are always in need of immediate funds. A personal loan is taken to full fill day to day requirements. This can be availed from both well-established bank and money lenders depending upon the need for funds for an individual. Banks involves long procedures.
One has to complete each and every requirement if they have applied for a personal loan from the bank. Hence which takes more time to get a loan, but if we avail of personal loan from money lenders, the procedures are comparatively and easy.
Therefore, most of them approach money lenders to borrow a personal loan to avoid any wastage of time. Especially in the scenario where an individual doesn’t have a good credit score bank don’t approve their loan request; hence, they end up borrowing money from the Moneylenders.
But always make sure that the money lenders from which you are borrowing loan are having legal license and registered under the Money Lenders act.
Even though the rate of interest of money lenders are comparatively high than the bank still people find easy to borrow loan from the lenders
Since the procedures and requirements are less, the loan gets approved quickly.
THINGS TO KEEP IN MIND
If you have a good relationship with a moneylender, they may be willing to lend at a decent rate of interest also. Also, if you have maintained a history of repayment of loan on time, the lenders would like to provide you with a loan whenever you are in need or may help to reduce fees etc. Because ultimately, the risk factor is reduced if the relation of the lender and borrower is good
If the personal loan is available from the bank and due to some reason if an individual is unable to repay that loan back the credit score is ruined, and in future, if you have a bad credit score, no bank takes the risk to provide a personal loan. Hence you are taking the risk of credit score.
Asking for financial help from money lenders is quite flexible and convenient because they have easier options related to the procedures concerned.
Some advantages to borrowing a personal loan from money lenders are less documentation, saves times, quick loan approval, cost-effectiveness, Flexible repayment of loan etc.
If in case you face a medical emergency and you need immediate funds, then money lenders are the best option because they help you to provide funds without any delay.
By this method, you can easily find out the best lenders without paying more interest rates. And yes, you can contact our top licensed money lender without any hesitation if you want the best loan with good loan policies.