Regardless if you’re obtaining a loan from financial institutions or licensed moneylenders, it’ll always come with an air of uncertainty and apprehension. However, by approaching a reliable and licensed moneylender – you won’t have much to worry about.
With strict laws and regulations implemented to protect both borrowers and lenders, the licensed moneylender industry has been flourishing over the years. When it comes to getting a quick loan, Singaporeans have the option to choose between banks or licensed moneylenders. If you’re caught in a dilemma, then read on as we elaborate on the advantages of acquiring a loan from licensed moneylenders!
The straightforward and fast application process
Banks are known for having a long and tedious loan approval process. If required, they might even conduct background checks on you to determine if your eligibility for a loan. On the other hand, you can get fast cash with an instant loan approval as fast as one hour with a licensed moneylender – provided you have the necessary documents ready and available on hand.
Now, some licensed moneylenders give the option of applying for a loan online. Depending on your licensed moneylender, the cash collection process must be done in real life. But don’t worry, because the staff will schedule an appointment for you to do so.
Higher approval rates
The loaning criteria set by licensed moneylenders aren’t as stringent as financial institutions. In fact, financial institutions follow a strict and rigorous procedure when evaluating your background and credit. In contrast, licensed moneylenders are more flexible. So, even if you don’t have the most favourable credit ratings, you might still have a chance of getting a loan.
Transparency in interest rates and payment schedule
Before agreeing to the loan, the licensed moneylender is required to go through a contract with you that explicitly states any kinds of fee that you’ll be charged with, which includes the interest fee, processing fee, and late fee. Since the agreement will be authorised with your signature, the possibilities of the percentages fluctuating are highly unlikely. Additionally, the maximum rates that can be charged are determined by the law.
Licensed moneylenders operate their business following the rules and guidelines set by the Singapore government. As most moneylenders have been in the industry for years, they often take pride in offering top-notch and quality service to their clients. For instance, they value efficiency in their service, as seen by the quick approval and cash distribution process.
However, in the unlikely event of unfair practices or contract from a licensed moneylender, you can contact the Ministry of Law at 1800-2255-529 for assistance.
If you’re in need of a fast loan, then licensed moneylenders might be the most favourable choice for you. For your own safety, it’s highly recommended that you take the time to assess the legitimacy of the moneylenders. Adding on, it’s best to compare the rates offered by various moneylenders before settling on the one that suits your financial capabilities better.