Topping the reason why many people run to commercial banks is to secure loans to solve one or more personal or business problems. In Singapore, this service is equally rendered by legal money lenders and there comes with some degree of freedom when compared to the loans gotten from commercial banks.
Personal loans cannot be used for business
When a client is offered a personal loan, he is closely monitored by the lender to ensure he does not invest it into anything that has to do with business. There are stores in the market that let their customers make purchases using their personal loan charge cards. The monitoring of the loan takers is a form of guarantee to the store owners that payment of debt will not be an issue.
Legal lenders in Singapore have different backgrounds
Legal moneylenders are not always government backed. Some are individuals who are willing to invest in the financing sector. There are also some businesses and companies that have developed their ability to lend money as a means of diversifying their income. The amount of money that can be given out ultimately depends on the financial strength of the legal money lender.
The requirement for legal money lenders is less complicated
If you have ever walked into a commercial bank seeking for a loan, you would understand how difficult it is to secure a loan. You will be required to bring one document after another – and in some cases, getting the documents will not guarantee anything. The private lenders, on the other hand, will not require much paperwork. Likewise, the processing time of loans is faster in comparison to the traditional lenders.
The delay in processing of loans can be ascribed to set down rules
Commercial banks, credit unions, and various other non-private lenders usually belong to a larger body governed by rules. They are required to operate in accordance with the rules laid down by the mother body or face sanctions. This is usually the reason why processing of loans can be delayed. The private lenders, on the other hand, are not governed by such rules and regulations thereby allowing them to operate at their own pace.
You can hasten up your loan request process
No matter the lending source you want to get your loan from, you can make the process faster by making the requisite documents available before going to apply for the loan. One document that will be requested by both commercial and non-commercial lenders is the financial status of your business and sometimes your profit and loss records.
Take a close look at the conditions of your money lender before agreeing to the deal
The very fact that those private lenders are not closely monitored makes them have arbitrary charges as interest rates. It is pertinent that you scrutinize the documents properly before signing the agreement. Failure to take this precautionary measure may land you into a financial mess that will be worse than your initial condition.
Money lenders can be found online
A generic search through any of the search engines will help you find the list of legal money lenders available in your area. Having made a list of the available money lenders in your area, you will still need to sieve them. You can settle for one of the money lenders on your list by asking around especially from business owners who have used the services of private money lenders to seek their opinion about their services.
- Legal moneylenders play the role of commercial banks in Singapore.
- Personal loans cannot be used for business.
- Some stores let customers make a purchase with personal loan cards.
- Legal moneylenders in Singapore are mostly private individuals and companies.
- Bank loan takes a long time to process.
- Legal money lenders process loans at a faster rate.
- The lag in the processing of bank loans is linked to the central body they belong to.
- Getting the necessary documents ready can hasten your processing time.
- Commercial and non-commercial lenders will require some documents.
- Private lenders have higher interest rate.
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