What are the Advantages of Borrowing from a Money Lender?
When borrowing money, people often think of banks or family and friends. However, a loan from a money lender can also be a practical solution.
Mainly, licensed moneylenders are one of the most legitimate yet flexible manners through which persons acquire the money they need and require.
Therefore, while borrowing money can be stressful given the many options, it doesn’t have to be. Licensed moneylenders offer a range of benefits that we’ll discuss below.
Advantages of Borrowing from a Money Lender
Below are reasons why borrowing from a licensed moneylender in Singapore could be wise for you.
Speed and Convenience
The top benefit of a licensed money lender is the speed and ease at which the process may be wrapped up. Though banks often mean a lot of paperwork, coupled with long-winded procedures for loan approval, licensed money lenders make life so much easier. You can even get your loan approved within 24 hours, which is often a game-changer if you are faced with an emergency or need urgent funds.
This is instead of waiting for weeks for feedback and finding that money in your account instantly.
Flexibility in Loan Amount and Repayment
Another great advantage derived from the use of licensed money lenders is flexibility. They can often offer smaller sums, which is a welcome relief, especially if all one is trying to get through is that little boost.
Also, the payment plans are more flexible. The licensed money lenders realize that everyone’s financial situation is different, and many of them will work with you to devise a payment plan to fit your budget. This personal approach reduces the stress of repaying your loan and helps you avoid the burden of extremely high monthly payments.
Fair Practices and Transparency
In Singapore, licensed money lenders have been registered under the Ministry of Law and regulated by them on strict policies. This ensures you aren’t charged to pay for hidden fees, high interest rates, or other unfair means.
This law compels every moneylender to spell out to you in clear terms what your loan is all about before you append your signature to anything. The clarity ensures you make informed choices without later surprises.
Access to Credit to People with Lower Credit Scores
You know how hard it is to get approval for a bank loan if your credit score isn’t perfect. In that respect, licensed money lenders are more easygoing with their credit score requirements. Although they still evaluate the ability to repay the loan, they are usually much more willing to work with those who could not qualify for loans otherwise.
Rather than just your credit history, licensed moneylenders consider the big picture, including income and job security, and not just your credit history. Therefore, if you need funds that banks have denied you, it may be your salvation.
Legal Protection and Security
At the same time, borrowing from licensed moneylenders also means that the rule of law protects you. Whatever dispute arises, you get to seek legal help since you have backing from the Ministry of Law. Usually, you are not provided with such protection when you seek loans from lenders working without licenses or private sources.
Money lenders are responsible for whatever activities they get involved with and, consequently making sure they are operating legally. therefore, given the many incidents relating to financial fraud nowadays, this kind of security is assuredly critical for one’s protection.
A Realistic Solution for Short-Term Needs
Sometimes, what it takes to get you through not-so-good times, such as enormous bills for medical procedures or urgent house repairs, among any other unwanted expenses, is that short-term loan offered genuinely by a licensed money lender.
Most moneylenders offer very short-term loans, so you do not have some long-term debt dragging you down. You can borrow what you need, be able to repay in a workable time, and get on with life.
Conclusion
The convenience, safety, transparency, and practicality of borrowing from a licensed money lender in Singapore make this the most convenient way to obtain the funds one needs.
Therefore, next time you need a loan, it would be much better to search for a licensed moneylender.
