When you find yourself strapped for cash and need it ASAP, banks are not the places to go to since you will find yourself undergoing too much bureaucracy and paperwork that would take ages to finish. There is also the fact that banks will take a longer time to approve applications, especially if your paperwork is shady for their tastes.
Of course, there are ways for you to get fast cash and not have to worry about bureaucracy. You can mortgage some of your assets, go to a pawnshop and borrow from family and friends. However, if you do not want to risk too much or make a financial flop, you can approach licensed moneylenders across the country to help you out with your money problem.
Licensed moneylenders are unlike regular creditors who would put their details on various mediums just to advertise their products. Licensed moneylenders are recognized by the government and adhere to the approved lending amounts and rates to ensure that clients will not have problems once they seek personal loans from them. When you approach them for your cash needs, you will definitely be well-informed about your personal loan before you sign your contract.
Nowadays, licensed moneylenders are now revamping their image to ensure that every aspect of personal loans follow the government’s guidelines: from how it is approved to how money is recovered. It is also an attempt to separate them from fake moneylenders who tend to victimize those who need cash badly.
Since banks also offer personal loans, there are several reasons why licensed moneylenders are healthier solutions than banks when it comes to money problems.
- Moneylenders are more favourable for small or mini loans
If you do not intend to borrow a lot of money, banks are not the creditors to go to because they see small personal loans as bad business and it would not provide them much revenue. If you will only borrow a certain amount from them, banks may deny your applications immediately.
Moneylenders, on the other hand, are better than banks because they offer small loans that you can use for transactions like medical bills, car repairs and small expenses. Moneylenders offer small loans so they can reduce the effects of unpaid debts if one decides to default on their loans.
Under the loan, licensed moneylenders can only lend borrowers no more than 2 to 4 times their monthly salary so they do not borrow more than what they can pay.
- They have faster approval
When you apply with banks, it is often common that you will have to wait for days before your personal loan is approved or disapproved. They would look into all your documents with a fine comb and validate everything. One wrong detail and your application would be denied.
For licensed moneylenders, they will not need too much time to approve your applications. They would only ask for basic details that would reflect your identity, your financial status and other key details necessary so they can process your papers. If they see you have all the documents in order, you can get your loan as fast as 30 minutes and on the same day as you applied as well.
- They have high-interest rates
In order to secure your application, moneylenders would do their best to negotiate their rates with you once you meet them in their office to finalize your loan application. When they do this, do not immediately think it is a bad thing because it is a basic strategy in their part to ensure that your loans are perfect once you sign the contract.
By comparison to banks, moneylenders have very high interest rates as they can be as high as 25 to 30%. Since Singaporeans approaching these moneylenders need the money at once, they will agree to this rate regardless of their financial capacity.
If you find the rates too high, you can check out reviews about these moneylenders and pick the one with the best rates. You can also look into the other loan programs offered by the moneylender that offer the rates you are looking for, or seek a flexible loan that works with your current capacity. Moneylenders are open to flexible plans provided that the borrower’s circumstances can be explained properly.
- They will accept applications from clients with bad credit history or credit scores
Since banks look closely on the financial background of the borrower, they will immediately deny the application if the borrower has a bad credit score or history to prevent further defaults and losses. As a result, those with bad credit scores and poor history cannot go to banks when they need cash.
Moneylenders, on the other hand, are actually quite open to all types of borrowers, including those with bad credit history or no credit history. Since the amount they can lend is just small, moneylenders are ok with any borrower than goes their way. Of course, they will determine if the risk of lending to those with bad credit or no credit history is good since even they need to be careful of losses.
Those with bad or no credit history can revive their credit history with the help of moneylenders should they be approved for loans. If they managed to pay their loans on time and without problems, it will slowly improve their credit rating.
When it comes to borrowing money and get it ASAP, licensed moneylenders are the way to go. However, before you make your way to these moneylenders, make sure you do your research so you do not have anything to worry about throughout the loan process. Learn what loans you need and know everything about them so you can prepare your requirements and loan terms accordingly.
Remember: Licensed moneylenders can also disapprove applications if you have not prepared all the necessary documents needed for your application. They will also not be open to any changes in the loan terms if the contract is already signed!