People seek loans for different reasons. These can be for education, a home, a car, or daily amenities. With the soaring interest rates of the bank, it would be impossible for a person to take that loan. Here people look for other lenders that can loan them money at a reasonable interest rate.
Because so many people look for these money lenders, many people impersonate them and run away with important information about their clients. It is why you should look for not just any lender but a Licensed Money Lender Singapore. Singapore is a small island with a growing economy and human capital. In Singapore, an island connected to Malaysia, at least 1 in 10 individuals looks for these lenders to avail of loans. Even then, 10% of these people opt for these loans to finance their previous mortgages.
Difference Between A Licensed And Unlicensed Money Lender
Even if you were to find a trustable unlicensed lender, they don’t need to follow all the rules and regulations. A legal or licensed money lender is supposed to keep the interest rates throughout the mortgage uniform. They also keep the client’s information safe and unhampered. In contrast, an unlicensed lender can increase the interest rates however they wish. Along with that, if your interest payment is late, the papers you submit could be unsafe.
Thus you should be careful and ensure that your lender has a license; opting for a Licensed Money Lender in Singapore can never be a wrong choice. With the growing opportunities and job sectors, Singapore has strengthened its economy significantly. Yet every two out of 5 people get a loan to buy a car or for standard amenities. Though this number has increased over the previous years, at least 11% of the people get new ones only to finance their previous loans.
Why Licensed Money Lenders?
If you can find a trustworthy, unlicensed money lender at a low-interest rate, why opt for a licensed money lender?
● Less Time And Paperwork
A licensed lender is aware of the necessary paperwork needed to lend the money. As soon as the required papers are submitted, they can lend the money in less than an hour. It makes licensed lenders trustable, time-saving, and less complex than banks.
● Any Amount Of Loan
A licensed lender is well known for lending small amounts of cash, as most people need personal loans to look for them. But in some cases, lenders can lend large amounts of money, if not at once, then in multiple transactions. It is beneficial when it is not possible to visit a bank, and you need money for a loan.
● Low-Interest Rates
As they can not lend you a substantial amount, they don’t need to worry about the returns and the related bank work; thus, their interest rate is the lowest. They always lower their interest rates significantly to attract more people to opt for them instead of big banks.
● No Need For Credit Scores
A licensed lender does not have the same authority as a bank that can issue cards on which they can check the credit score. Also, they don’t need to take a bias to the client’s credit score. They only need the client verification and one solid article against which you can take the loan. After that, it is barely a matter of an hour till you get your loaned amount.
When submitting your necessary document to any authority, it is necessary to ensure that it is in safe hands. Money lenders are one of the most sought-after people who collect documents from various people. Thus knowing that they are a legal authority or licensed ensures that your documents are in safe hands and there is no malpractice. It may seem unnecessary or awkward to ask a money lender for their license, but it is a necessary step to ensure the safety of your documents.