Licensed moneylender is a good option for personal loans

Singapore Money Lender vs. Bank

A licensed lender makes it easier and faster to obtain a short-term loan than a bank. Following a visit to the moneylender, the procedure begins with the completion of an application form, and the credit risk determines the interest rates offered.

Singapore Money Lenders guarantee that all loans are completed in the shortest time possible. A borrower with good credit is more likely to get the loan quickly, but the process is generally quick and easy regardless of the customer's situation.

Banks take longer to approve loans because the administration closely monitors the process. Another aspect of the procedure is the loan amount, but the procedure is applicable to various types of loans. When you need cash, a licensed moneylender is a good option for personal loans.

If you have bad credit, a low income, or are otherwise unable to obtain a personal loan from a bank, you should consider a loan from a Singapore Money Lender rather than a payday lender. Because licensed money lenders target customers who have been turned down by banks, they have distinct characteristics that cater to the needs of a different group of customers. The main distinction is the borrowers' risk profile. Banks are inaccessible to people who make less than $20,000 and do not have a credible credit history because they focus on people with credible credit histories backed up by stable income. Licensed money lenders, on the other hand, specialize in lending to the latter group of people. This significant difference has ramifications.

For example, licensed money lenders typically make small loans of up to S$1,500. Payday loans for people earning less than $20,000 per year are likely to lend 24% less than your monthly paycheck, limiting the amount you can borrow to around S$1,200. Because money lenders are much smaller organizations than banks, they cannot afford to take the risk of making a large loan to someone with a poor credit history. Banks, on the other hand, can lend you 2-6x your monthly salary up to $200,000, but only to borrowers with stable income.

Furthermore, the small size of licensed money lenders allows them to make loans quickly. Occasionally, within an hour, if not sooner. While bank personal loans in Singapore are already competitive and efficient, as they are made available to borrowers within 24 hours of application, such speed pales in comparison to the agility with which licensed money lenders can operate.

Last but not least, the interest rates charged by these lenders differ significantly. While bank rates typically range from 5% to 7% per year (and up to 25% for credit card debt), licensed money lenders can charge 30-50% per year. If you still require a loan from a licensed moneylender, we recommend Lendela, an online marketplace.

Smaller loans are typically made by licensed moneylenders. One reason for this is that the businesses are frequently small and serve specific regional financial needs. Because of the strict approval rules, the bank borrowing procedure can be tiresome and burdensome.

People in need of quick cash can turn to licensed lenders for assistance. The loan can be used to cover unexpected bills or emergencies. Customers who do not have enough savings to cover these costs or who require smaller amounts can turn to a moneylender. However, for larger purchases, such as mortgages, a bank is preferable.

Top licensed money lenders offer details about starting a company in Singapore at low interest. Call 8504-2319 now!