With more companies and establishments entering the moneylending business, a lot of people have become wary about borrowing from them. The premise is that the newer moneylenders may not be as reputable as those who have been in practice for years. But this should not deter you from availing services from them.
You can choose licensed moneylenders in Singapore, but only if you are sure about what you are getting into. Currently, there are around 170 such lenders in Singapore that are registered by the Ministry of Law.
Here are some reasons why it is better to choose a licensed money lender Singapore over an unlicensed one.
When you go to a bank, you have to go through a lot of paperwork and wait in line for a long time. With a licensed moneylender, all you need is your ID and the money you want to borrow. You can get the cash instantly without having to wait in line or fill out any forms.
2. No Credit Checks
Banks don’t lend money if they do not trust you in repayment. If you have a bad credit score, it is doubtful that the bank will give you a loan. A licensed moneylender does not rely much on your credit score because they know that if something makes it impossible for you to pay back the loan, they can involve your assets for repayement.
3. Lower Interest Rates
They determine the interest rate of your loan on the amount of money you borrow and how long it takes to pay it back. If you have a good credit score, banks can offer lower interest rates than if you have bad credit. A licensed moneylender is not concerned with what your credit history looks like, so you can get an interest rate that suits you.
4. Flexible Repayment Options
Since 2015 October, the Ministry of Law in Singapore has fixed the upper limit for interest rates at 4%. Before this happened, interest rates were very high. For instance, pawnshops charged 10% per month for loans. Licensed moneylenders are not allowed to charge more than 4%, making it easier for you to pay back the loan on time.
5. No Hidden Fees
Banks and other lenders will often charge hidden fees for their services. A licensed moneylender in Singapore does not do this, so you can be sure that all of your money will go towards paying off the loan. It means that you will not have to worry about unexpected charges later on down the road when you are trying to pay back the loan.
6. Quick and Easy Approval
When you go to a bank, you have to wait for a long time before your loan is approved. The bank has to do a lot of research on your credit score and financial history. A licensed moneylender will approve your loan very quickly, often within minutes, as they do not need to do any research on your credit score.
Therefore, it is clear that in Singapore, the licensed moneylender offers some benefits that are not available at other places. If you need to borrow money, it is best to go to a moneylender who is licensed to get the best deal possible.