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 lender Singapore 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.
Moneylenders
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.
