How to make a choice between the licenced money lenders vs Bank? A critical financial situation can occur to anybody at any point in time. Well, in this situation, all you need is financial assistance. The banks and the legal money lenders provide debt to the borrowers. These things are essential during tough times in Singapore. The banks have quite strident policies. As they function on the traditional bank system.
On the contrary, the licence moneylenders are evolved and advanced. They will provide you with the loan very easily. These things are very important and must be considered as they will not cause any kind of delay or inconvenience. The fast cash will be approved very easily. It is absolutely safe and secure to reach out to. The licensed moneylenders. This is a very famous belief that money lenders are not safe.
Well, not in this case, as in Singapore, the licenced moneylenders are registered. Moreover, they strictly follow the rules and regulations. The law of ministry has stipulated some of the rules and regulations. The banks have a completely different procedure of giving the loan. Let’s have an insight about the money lenders VS banks.
Licenced money lenders VS banks
Get to know about the banks and the licenced moneylenders as the banks follow the standard procedure of lending the loan. On the contrary, legal money lender in Singapore has completely different procedures. There are certain things that are very dissimilar about the banks and the licenced money lenders. In this article, we discuss the differences between these two money lending organisations.
It will definitely provide you with your perspective. Here we are going to point out the strong points of licensed money lenders. This will give you adequate reasons to choose licence moneylenders over the traditional Bank systems. Let’s dive into the licensed money lender versus banks.
The interest rate of the licenced money lenders
The interest rate plays a vital part as it is very important for the borrower to pay off the debt. In the context of money lenders, they are obliged to follow the stipulated by the government. As per the laws and legislation, the licenced money lender can only charge 4 % of the interest rate. This interest rate is stipulated by the government of Singapore. The interest rate must not be exceeded by the money lenders as the borrowers should only pay 4% of the interest rate per month. This is a great deal for the borrowers as an interest rate is extremely affordable and reasonable. If the interest rate is exceeded, the licence of the moneylender will be terminated.
The interest rate of the Bank
There are many banks in Singapore. These banks have dissimilar interest rate. This might take a heavy toll on your pocket as the banks can charge the high-interest rate. These interest rates can take a deep dig. There is no definite figure of the interest rate. Moreover, the interest rate is absolutely higher than the licenced money lenders. There is a vast difference in the interest rate of the banks and the licenced money lenders.
Non-Critical terms and conditions
The licenced money lenders do not have any kind of crucial terms and conditions. These are the things that are important. To be precise, they are quite favourable for the clients. These are the things that are very important. While applying for the loan, it will be easy for the borrowers as licensed money lenders in Singapore do not have stringent policies. It will be much more convenient and easy for the borrowers. Moreover, the money lenders will definitely be cooperative and friendly with the clients. It will be easy for the borrower to apply for the loan.
Critical terms and conditions
On the contrary, the banks have critical terms and conditions. These banks have extremely stringent policies. It might be taught to opt for the loan as the terms and conditions are quite restricting. The banks follow the standard procedures of the loan-application process. This can cause delay and inconvenience. It is not as easy as lending money from private or licence moneylenders. It can be a long procedure. The banks usually call for a long procedure to get a fast cash loan. The banks have critical terms and conditions.
Quick disbursement of the loan
The licenced money lenders have the quick disbursement of the fast cash loan. This loan is absolutely beneficial as it will not cause any delay to the borrower. The licensed money lender will not consume too much time to approve the loan. Everything will function very quickly. This will absolutely provide financial assistance in the case of an emergency. The licensed money lender can be more helpful than the banks. The banks are not too quick. The disbursement of the loan is enabled only by the licensed money lenders in Singapore.
Slow disbursement of the loan
The banks have a really stringent policy. These are the things that can take a heavy toll. The Bank has the slow disbursement of the loan. Comparatively to the money lenders are quite lenient. The banks have the slow disbursement of the lain. It can cause the borrower delay and inconvenience.
The licensed money lenders in Singapore are easily accessible. They have adequate time. These money lenders will keep a physical meeting with the borrower. In order to approve the debt money lender will visit the borrower’s residential address.
This is the only way to approve the loan. It is a very mandatory step. The money lender is obliged to visit the physical address of the borrower. Moreover, the moneylender also has a physical address. In case if there is any query about the money, the borrower can reach out to the physical address of the moneylender. This makes the licensed money lender in Singapore more accessible.
The bank’s authorities are not very easily accessible. These are the things that can be a setback. As compared to the licenced moneylenders, the banks are not cooperative. Hence the bank authorities are laboriously accessible.