In this article, we are going to discuss some benefits of taking a loan from a moneylender are. Also, we will discuss why people take a personal loan and who licensed moneylenders are.
Why do people take a personal loan?
A money emergency can occur at any time without even knocking at your doorstep. Also, these emergency funds you will need will cost a lot more than you think. You can either be making plans for doing a wedding, for personal reasons or in a business.
You might at any time in your life run out of money while doing something important. So you will need at least a few thousand to complete the work and also the remaining payment. In such cases, people struggle to get a loan from anyone in the whole market. They try out different policies and places to give them loans, but they are not approved and cancelled.
If anyone ever comes across a financial problem, it is better that you need funds in an emergency. That is why a quick loan is the most affordable and the best loan for your needs. The traditional loan method takes a long time to process, and then they will give out money. Also, if you take a loan from a bank, they will check your credit score, your financial status.
They will also calculate the likelihood of the borrower paying back the loan amount. That is why if you are in Singapore and you need a quick loan, you can take a personal loan from a moneylender. A licensed moneylender will give you a quick and fast loan with an affordable rate of interest. Depending on your financial needs, the moneylender will have created a loan package for you.
Who is a licensed moneylender?
Licensed moneylenders are a kind of private individual or a group of people who form a loan-giving agency. They not only give you a personal loan they will offer different types of the loan according to your need. They are registered with the Singapore government and need to follow the rules set by them.
The rules creating agency is called the Ministry of Law, which is also called as MinLaw. These are the ones who set the rules and regulation which a lender has to follow to be legal. This is done to ensure that these moneylenders do not behave like loan sharks and scam people.
The MinLaw conducts a survey every month and finds out those websites which are following the rules. They will then make a list of the licensed moneylender and put it up on their official website. This is done so that people can check which lender is legal and they can take a loan from.
Moneylender license Singapore is also given to them by the ministry of law. These licensed moneylenders will give you any type of loan at a low rate of interest. They are a good option to choose when you want to get a quick loan or money from them. That is because they only take a couple of minutes to process the request and then approve the loan. Moneylenders are a very old topic and have also been there since a very long time ago.
What type of loan can you get from the licensed moneylender?
The licensed moneylender has a different variety and range of loans from which you can choose from. You can take a personal loan, wedding loan, short-term quick cash, and also more. The moneylender follows a set of rules and regulations to give out loans at a certain rate of interest. They are licensed to give money or loan to the people that also at several rates.
They are also bound by the law to give you a certain type of loan, and also, the rates are fixed by MinLaw. If you need a large amount of money as a loan, then you can visit a bank. As for a large amount, the bank will not charge you as much as the moneylender. This is because the moneylender is a good idea if you want very sort or short-term loans.
You can take quick loans like medical emergencies, payday loans, or even a vacation loan. These are the loan which is given by the lender and that too at a less rate of interest. You will have to select the loan and will have to wait for it to be approved, which takes some time. Sometimes the loan will take a couple of minutes, or in some loans, it might also take them an hour. The rate of interest also depends on certain things, but depending on your loan, it is finally decided. If you are taking a personal loan or loan for a short period, then the rate of interest is low and affordable.
What are the benefits of choosing a licensed moneylender to take a loan?
Moneylenders have been in the market for a long time as a substitute to the bank. This is because bank gives loan at a high rate of interest and the lender take less rate of interest. They only target those people who have been rejected by the bank and give them a loan. Here are some of the benefits which one can receive by taking a loan from a moneylender.
- You get your loan in a day
This depends on the loan you have chosen if you have taken a personal loan, it will be cleared in some time. But some of the loans might take a few hours to process and to get approved.
- Affordable interest rate
The rate of interest set by these moneylenders is very affordable and can be paid by anyone.
- Hassle-free loan application
You will see that the process for the loan to get approved takes only a short time. Also, the process of approval of the loan is easy and can be done within a few minutes or hours.
- Moneylender is trustworthy
This means that the moneylender is a very trustworthy person in the market. This is because they give a loan at less rate of interest than all the others.