Before we move ahead to check the types of things to look at in a moneylender, we need to understand what and who is a money lender?
A money lender is a person who lends money to an individual for his or her personal work. The person holding the license is a licensed money lender. A person not holding the license is an illegal license holder.
Money lending is also a type of business as the person who is giving a loan can earn income by collecting the interest from the given loan. This job is professionally and legally done by the bank loan department. We all know that a bank is an authorized place that helps people lending money by charging an interest amount on it for a specific time span.
Now, there is always a question why does a money lender lend money on what basis? What if a person runs away taking that money?
The lenders are smart enough. There is a procedure for it. Every licensed holder will keep some of your assets on behalf of the given money, e.g., it can be your car, or a bike or sometimes even your living place.
In professional terms, the economical assets, which is a mortgage for getting loans, is called collateral. On this basis, the amount is decided and given by the lenders according to the value of your assets.
So, when you borrow an amount and keep something for that same amount is called security.
To ensure that a borrower can’t escape or fraud if they take the money and gets away from the reach of lenders, the loaner can take the security and keep the assets. Hence, in this case, it is very important to be a licensed money lender it is because in this case, an FIR can be filed, and legal proceedings can be with the help of an attorney.
There are some types of the licensed lender in Singapore. All these licensed moneylenders are listed on a legal website. If you want to confirm or check if an individual is a licensed money lender are not, you can simply visit the website of Singapore’s government and access the licensed moneylender list.
We also had some private money lender which provides loan on a specific amount of interest in the rage of 9 to 14 per cent. People usually prefer these kinds of money borrowings because this is a fast process of getting loans. After all, not many legal formalities are required.
In case if u prefer going to a bank, then this procedure might take months. So, in case of emergency people always prefer this as a great option. This process is followed globally and even in Singapore.
There are very simple steps we must make sure to follow before getting the loan approval. You have to be a permanent resident of the country, and if you are an outsider, you need to have a green card.
The licensed moneylender is important
Money lending can really be a simple circumstance when the borrower is demanding money from a licensed moneylender. This is because there are many quacks who do not have any value in their words, and they say some different versions while you go to return them with the amount.
This is seriously an unhealthy occurrence in loans.
In order to avoid any kind of bitter experiences at a later time, it is always better to go for a licensed money lender.
What all things you must know about your licensed lender?
Do not forget to check out the licensed moneylender list from the official website of the ministry of law and moneylending.
- Low-interest rates
We all want to give low-interest rates on the loans we take. If we see, there are various banks that keep so many offers on the interest amount. Hence people taking money want to pay back less. In this case, it is very beneficial to take loans from private money lenders as the amount is less.
Less rate of interest amount is because they use their own accumulated money while bank or others using public money to lend loans. So always prefer to pay less in return and enquire with two to three lenders. To get a better idea of who will be taking a less amount of interest. Rate of interest plays a very important role in this process as it the profit of the moneylender some charge high and scam you.
- Quick verification
People are usually ready to take the risk. This is only because of the emergency and urgency for the need for money. Hence, they choose the option of private lenders rather than going to the bank.
Bank will take a number of documents and verify them only if they get approved from a specific department you are eligible for the loan amount. But in private money lenders, there is a handful of documentation that needs to be done.
There are documents for signature and your security papers. Less documentation also helps you to not disclose and everything about your personal life. Less paperwork also might risk for the moneylender in future. But is always beneficial for the Licensed ones.
- Loans within hours
In Singapore, we have various faculty who provides loan within 24 hours. U just need to get the documentation done, and money is in your account. We have various apps and websites for the same, but there is also a high risk of fraud and scam which takes place. It is because you submit and verify your personal documents.
An individual needs to be very careful about the websites. Before you proceed ahead, u need to make sure that the application or website Is verified and registered in the ministry of law.
The loan period takes months and months to get approved, but few of them within a day or hours it’s done. This is always helpful for the people in emergency and need of money.
Alright, you should not think further about ‘where to get a personal loan fast‘, just contact one of our moneylenders.