Why Choose a Licensed Money Lender Over Banks in Singapore
When you urgently need cash in Singapore, borrowing from a bank comes to mind first, but choosing a licensed money lender may offer a quicker and more flexible alternative.
Therefore, this post will discuss the key benefits of borrowing from a licensed money lender over a bank. Before proceeding further, let’s define who a licensed money lender is.
Who Is a Licensed Money Lender?
A licensed money lender is mainly registered under the Ministry of Law and follows strict regulations. Unlike loan sharks, money lenders’ operations are regulated and ensure the highest level of transparency. Therefore, borrowing from licensed money lenders can be an option, especially if you face challenges applying for a bank loan or don’t meet all the qualifications.
Benefits of Borrowing from a Licensed Money Lender
Faster Loan Approval
Usually, banks will require piles of documentation and prolonged checks, which delay funding for weeks or even months. But, with a licensed money lender, the process is accelerated, with applications sometimes approved in a few hours.
Importantly, such speed is helpful in emergencies that require immediate cash, like sudden medical costs or urgent car repairs. Therefore, if time is of the essence to you when borrowing, then an accredited money lender may be your best choice.
Flexible Eligibility Requirements
It is usually challenging to get a bank loan if you are self-employed, freelance, or with poor credit history. To qualify to borrow from a bank, you must have a high credit score and be salaried. On the other hand, a licensed money lender considers more than just regular credit scores. Therefore, those with modest incomes or less-than-perfect credit can still get the necessary financing.
Suitable for small Manageable Loan Amounts
Sometimes, you need little money and not the large quantities banks usually provide. In that case, money lenders are your go-to option since they specialize in smaller loans, letting you borrow just enough to cover urgent expenses. Importantly, borrowing a small amount of money, just enough for the specific need, helps minimize the risk of getting over-indebted and keeps you on schedule with payments without added financial burdens being placed on you.
Simplified Application Process
Bank loans require you to fill out endless forms and carry out extensive verification processes, which can be complex. On the other hand, licensed money lenders only need your essential documents, such as your National Registration Identity Card, proof of income, and address. Importantly, money lenders have straightforward online applications that reduce waiting times. Such a smooth approach is beneficial if you need urgent cash and do not want too much administrative hassle.
Personalized Service
Banks may not offer personalized services since they deal with many customers. In contrast, money lenders, being smaller, can offer more personal support in discussing repayment plans that fit your situation. This personal touch fosters better communication wherein your financial constraints and goals are understood thoroughly before any deal is finalized with due care.
Short-Term Repayment Options
While banks will tie you up in long-term repayments, money lenders have mostly short-term solutions. This flexibility lets you clear debts faster to reduce interest and avoid prolonged obligations. Short-term loans are ideal if you foresee a quick turnaround, like an upcoming paycheck, where you can settle outstanding balances promptly with minimal stress.
Conclusion
Based on the above benefits of borrowing from a licensed money lender, for emergencies or timelines you cannot afford to miss, licensed lenders will come in handy without compromising transparency.
Therefore, if you urgently need money, are not qualified, or don’t have the time to deal with the hassle of borrowing from banks, opt for a licensed money lender.
