At one point in our lives, there are real instances where we are badly in need of extra cash that is why we opt to apply for a loan. A loan application is not that easy where you have to go through all the requirements and qualifications to get the loan that you needed.
Aside from the loan application, you also have to choose where you are going to have your loan. In Singapore, you can find numerous licensed money lenders all over the country, but apart from these licensed money lenders, you may also be able to detect unauthorized or unlicensed money lenders today.
Why Choose a Licensed Money Lender?
Even though there are borrowers who are thinking of borrowing from an unlicensed moneylender, they should be able to know first the benefits of having their application sent to a licensed money lender than an unlicensed one. Some of the benefits you can have from a licensed money lender are the following:
● Low interest rate
The best thing with licensed money lenders is that they have a low interest rate compared to those unlicensed money lenders. Licensed money lenders are competing with each other that is why they are doing their best to gather borrowers to choose them, and one of their strategies is through having a low interest rate.
Aside from having a low interest rate, they are also easy to manage because they have a flexible repayment term thus they are going to check first how much can you afford when it comes to their monthly repayment so that you won’t have a hard time balancing your expenses and debts.
● Safe and protected personal information
Since licensed money lenders have a rule and law from the government of Singapore that they have to follow to keep their license, you don’t have to worry when it comes to your personal information being used against you.
You can already find a lot of schemes today where you are being bribed, or through your personal information, they can get data from you that they can use in hateful things, but because of the laws we have, you are at ease that licensed money lenders can’t do anything that could harm you.
● Hassle-free loan application
Applying for a loan from a licensed money lender from https://smartloan.sg/ is not hard where you will only submit your requirements, and after a few moments, the lender will already approve your application and give you the money that you need.
Apart from having a hassle-free loan application, you are also secured that your loan’s interest rate won’t rise over time and you would be informed with any fees being charged to you. When applying for a loan in a licensed money lender, you will be given information of their loan terms, and whatever terms have been given to you, you are sure that it would stay that way until you finish your entire loan’s repayment.
● Avoid harassments from unlicensed money lenders
The government has been helping both the lenders and borrowers side thus they have been implementing rules and laws in protecting both sides. If the lender won’t follow these laws and would put their borrower in a bad situation such as harassment, the government has all the rights to charge them with fines, and if it is a worst case, they can even remove the license of the money lender.
It is not known that the lender and borrower would have problems when it comes to their transactions, but through these rules and laws the government implemented, the borrower is at ease that the lenders can’t harm them in any way.
Why unlicensed money lenders exist?
Even though the government has been strict when it comes to unlicensed money lenders in the country, there are still a lot of them everywhere. It is surely not a good idea to borrow from an unlicensed money lender, but because of insufficient funds especially during emergency times, others thought that the only choice they have is those unlicensed money lenders.
Borrowing money from a licensed money lender needs a minimum monthly income from the borrower, and some of them can’t reach this minimum salary that is why they would look for another option, and that is where the unlicensed money lenders come in.
Unlicensed money lenders usually don’t have any minimum monthly income if you are going to borrow money from them, but because they aren’t licensed, they have a very high interest rate compared to those licensed money lenders, yet a lot of people would grab the opportunity.
When choosing a money lender, it is best if you are going to do your research first. Applying for a loan is not easy, and you are going to pay that loan for the next months and years hence to avoid any inconvenience, you must make sure that you can choose the right money lender.