You may not know who the licensed money lender is. Unlike commercial banks, licensed moneylenders offer to loan out of their capital at a rate written by the Money Lenders Act 1951. Let us give you some basic information about licensed money lenders, money lenders under the Act are only entitled to charge simple interest between 12% to 18% per annum which depends on the loan security status. Despite our best effort, sometimes we find ourselves in a situation where we do need to borrow money, for a variety of reasons.
While borrowing from any financial institutions or any bank, is the most ideal solution of getting money but then also people prefer to turn to money lenders finding it easier, more convenient alternative to borrowing money from the bank.
At first, you may decide what type of loan you need, is it a big amount or a small amount, which will be more convenient to you paying the interest rates, everything you should understand and then find the difference between them so that you do not fall under a trap. If you live in Singapore then, you need to know more about the Licensed Money Lender Singapore and find the best one for you. In this article, we will discuss many sorts of information that will surely help you to clear all your confusion and doubts about the licensed money lender.
Moneylenders are not banks, neither are they loan sharks:
From the various resources, we came across a newspaper which was published by the public policy think tank Institute for Democracy and Economic Affairs, their reports say that many Malaysians are often confused when it comes to how can they differentiate money lenders with banks. This confusion may arise and it is natural because a licensed money lenderSingapore does the same thing which a bank does. Banks also provide you with the loan and so does money lenders do, so where the difference comes?
In many developing countries, licensed money lenders are more accessible to the general people who earn daily wages and cannot access the line of credit made available to those with financial assets recognized by banks and many other big financial institutions. The Act clearly defines the scope of a money lender’s activities and part of business operations, regardless if the person is an employee, agent or owner of a money lending business including sources of income. Crawfort Singapore can be a good option if you live in Singapore. In Singapore, legal money lenders are confirmed by the Law Ministry.
Benefits of choosing a Licensed Money Lender:
Lenders are also categorized broadly and this type of lender will not harass borrowers from the moment they start the entire loan application procedure to the finish. The government has set the operating rules for the Licensed Money Lender Singapore. Failure to adhere means that they risk their legal actions such as revoking their business licenses, fines, etc. The lender’s repayment schedule is always reasonable in their case.
Moneylender always have affordable interest rates as licensed money lenders have to stick to the rules and regulations that the government issue. The money lenders do not focus much on the borrower’s credit standing, just opposite to the banks and thus the process is too short for your application to get approved so this is a great benefit if you need the money on an urgent basis.
The process of determining the amount of loan money you are qualified for is also standardized and does not take a longer period. All the decisions are made in a very short period. The moneylender process of borrowing a personal loan is easy to get and is incredibly efficient.
A moneylender also has their physical office where you can visit and extract all the information going in your mind which you are not aware of and they are available on landline also. One more way to find good licensed money lenders is that they have a legitimate permit of operations.
The Moneylender’s Registry in Singapore has stringently set rules and regulations of how they can carry out their business with limited advertisements for their financial services to society. They have a specific way through which they can communicate with you. Moneylenders in Singapore have a much-systemized way of doing their business if you get an advertisement SMS from money lenders you have the right to report it to the Moneylenders Registry.
These were some of the information which you need to know about money lenders which you might not be aware of for so long and to choose the best money lender in Singapore, you can visit Crawfort Singapore.