From time immemorial, the policy of giving and take has been in practice. Previously it was the barter system, that is, goods in exchange for goods or money, which gradually evolved into the business of money lending. Money lenders are divided into two distinct categories – non-licensed and licensed money lender. Now, a basic question is who a money lender is? Well, a money lender is either one person or a group of people carrying out the business of financing. To put things more simply, a money lender’s job is to supply people or groups with small loans who are in an urgent need of money. The money needs to be paid back but at high rates of interest.
As said earlier, this kind of private money lending systems involves a certain percentage of rates of interest that is carried forward while paying back the loan amount. Since it includes a high percentage of rates of interest, the process of money lending becomes a bit risky. Money is lent only to those people who are the bearers of positive credit history, people not visiting banks and not having any contact with banking authorities, people who go out for shopping impulsively and whimsically and spent out their pockets without even noticing their limits and spendthrift gamblers as well. But licensed money lenders differ in few contexts. Licensed money lenders are not much different from the banks. In fact, their workings almost run on parallel lines. Similar to banks, these private money lenders too, provide loans to people, especially to those who suffer from urgent and genuine financial crisis. But the basic difference between banks and privatized loan givers is in case of repayment of loans. During repaying loans to licensed money lending organizations, there are no harsh actions taken against the borrower. Instead, adequate time is provided to the borrower but never harassed. Sometimes notice of reminder is also sent to notify the borrower of speedy recovery of the loan amount. The entire operation is done legally under the strict verification of Ministry of Law.
Things To Notice Before Taking Help From A Licensed Money Lender
- First and foremost, before looking for a licensed money lender, it is important to keep an eye on the other available options that can equally help you for providing immediate financial help. Alternative options include government based schemes or allowances.
- It is really important to go through the terms and conditions of the contract that you sign with your licensed money lender. Contracts bind people. For getting accustomed to any legal procedure, a contractual agreement is a need. Your primary work is to decide whether you want to go by the terms and conditions of the contract put forth by the money lending company. Your income and financial obligations are considered. Borrow only what your requirement demands. Otherwise, once you get blown away by heavy amounts, it will be difficult for you to return that much within the mentioned tenure.
- Read the terms and conditions contractual papers again and again so that you fully understand every point. The process of repayment or steps involved in repaying a loan should be specially taken care of and clearly The questions that should appear in your mind are: what is the time limit for repaying back the loan amount? What about the rates of interest? Information like these should be clearly communicated in details by the money lender or the money lending organization with whom are dealing.
- Always look for a money lender with the best terms and conditions available. Before planning to get a loan, do not hurry because rushing in case of monetary matters can cost you much later. Let your final decision get known to the money lender only when you are satisfied with the terms and conditions of the authority. A very important point to be kept in mind is that you will be the one to repay back the loan. So it is essential that you are okay with the terms and conditions of the money lending firm.
- Before signing the contract think, think and think! The contract always comes with a caveat. Now, what is a caveat? Well, a caveat is like a sword hanging above your head that warns you not to perform certain actions and orders, if violated will result in punishments like stopping of the loan or repaying back the loan on the part of the borrower before the tenure is over.
- Pay attention to the fact that if your money lender is asking for your SingPass password or user identities or if they are keeping back your important documents like national identity cards, ATM cards, work permits driving license, etc. Make sure that he or she returns back the documents on time otherwise you will be in a mess.
- Make certain that the money lender approves and grants your loan by following all the rules and regulations and does not skip steps in the hectic process. Otherwise, it may pay heavy on you later on.
Benefits Of Choosing A Licensed Moneylender
- The entire procedure from the beginning till the end is carefree of any kind of Money lenders in Singapore like Credit Excel Capital runs by the norms and guidelines of the government. Since they take risks of legal problems like nullifying their licenses, fines, etc. it is expected that their repayment method will be justified.
- You can blindly trust upon their rates of interest as it will always be reasonable. Apart from organizations where rates of interest are quite high, licensed money lenders cater to fewer rates of interest and of course within your income level. They determine your eligibility regarding paying loans in a standardized manner.
- Licensed money lenders never keep you waiting for a long time. Instead, the amount of time in between the amount requested for and the approval of the loan is just a matter of few days. Much focus is not put on your credit history. But the process in which the loan is sanctioned is highly efficient.
- Regarding the promotional activities of money lenders, the body of the Registry of Moneylenders in Singapore has already set some restricted rules beyond which no one is allowed to step. There is a specific procedure only through which they can communicate with their clients via advertisements. Another important rule of the body is that there needs to be an official set up for the money lending business so that clients can meet up with their money lenders face to face whenever an emergency arises or in case of simply solving out queries. Further, if any fake advertisement is received by the customer regarding money lending, the customer can immediately report to the Registry of moneylenders.
- The operation on which they work is valid, their landline is registered, and also, the existence of a physical office is mandatory so that people can seek immediate help from the office. Some other rules that follow a licensed money lender are punishments in case of situations in which you are unable to repay back the money at the time above.
- Finally, there are two types of loans, namely, secured loan and unsecured loan. Secured loans have relatively lower rates of interests than unsecured loans. You can choose according to your income level and financial urgency.