In this article, we are going to talk about the best qualities you can see in licensed moneylenders in Singapore. Also, we are going to discuss what is the need for money for people and why do they take loans.
Why do people take loans?
In today’s world, everything is so expensive to afford, so many people require financial assistance. This has become an important part of our economy as almost half of society is using it. Loans play an important part in the sustained economic development of society.
When a person is in serious need of money, they do not look at whom they are taking it. Also, they forget to check the period of the loan as they need the cash on an urgent basis. There is no maximum or minimum term of taking loans. Some might need short-term and some long-term.
A person can also take a loan once a year or multiple times in a year. It is a difficult task to identify a safe and trusted financial institution to take a loan from. The financial institution and bank are the most important thing to keep a lookout for. Another fact is that not all the moneylenders in the market can be trusted to take loans from. Due to the long process and strict rules by the bank, moneylenders are the option that is used by people.
Licensed moneylenders are popular in the market to take loans from due to low-interest rates and repayment rates. Taking a loan from a moneylender is a stress-free process and very quick as there are no long procedures. Everyone should know how to get the right loan for themselves from any of the agencies. There are more than a hundred moneylenders in Singapore, which makes it harder to make the right choice.
What are the best qualities of a licensed moneylender in Singapore?
There are more than a hundred moneylenders in Singapore, so each of them has its unique terms and conditions. Also, the quality of every moneylender is different, so it better to check it out before it’s too late. Here is a list of qualities that are most likely seen in a good moneylender.
- Competitive rate and fees
As a borrower, you might think that the moneylender might take more interest than the banks. But a good moneylender will not take more money than the bank and will give you a low rate of interest. The difference between bank and moneylender should be clear to the borrower. A good moneylender will offer you benefits and also less rate of interest to all the borrowers. This means that a good moneylender will give you the loan at a rate that is suitable for the borrower to take.
They will also give you other favourable items to the borrower along with the interest rate.
They will give them monthly benefits and also discounts on their loan amount. A moneylender should understand the problem and then charge you accordingly to your needs. This will help the borrower and moneylender to understand each other very quickly and also easily.
- Helps you to understand terms and conditions
A good and reliable moneylender will help you to understand the terms and conditions of the loan. This means that he will make you understand the rules and also the rate on the interest of the loan. These things will be done by a good moneylender before the signing of the loan contract. That is because they need to make their customer aware of the things they are charging for. This will erase any confusion and also any future fight between the borrower and the lender.
If you find a lender who is eager for you to sign the contract, this means that he is a fraud. He will not tell you anything about the contract and will just guarantee and tell you to sign. They probably might charge you more interest rates and also high charges.
- Customized services
Many people are taking loans, and they do not similar needs of preference for loans. So a moneylender will make the contract according to the needs of the customer or the borrower. This will help them to have a better understanding and also a mutual relation.
They will look at your financial needs and set the amount of the loan and also the rate of interest. They will also ask the borrower for the reason he is taking the loan from him. A fraud lender might force you to sign a pre-made contract that has more amount of loan and a high rate of interest.
- Good service and review
You should ensure that the moneylender you choose has a good reputation in the Singapore market. This will determine whether they are safe and secure to use or not. They should also post up their reviews and everything on their website for people to see. This will make sure that the borrower is aware of whether they provide good services or not.
It should not be a difficult task for a borrower to check the reputation of the lender in the market. They can find out these details from either friends, family or even from the market itself.
Choose a moneylender that has enough capital to meet the requirement of your loan. This should depend on how does personal loans work Singapore, and many people take this loan. This is a short-term loan and is given to everyone at a low rate of interest. They can take this loan for five years and, in some cases, also up to seven years.
You will also have to check whether a moneylender is licensed or not from their website. They should have the MinLaw mark on their website to tell the people. If they don’t have the mark, this means that they might be scamming you. You can also search which will tell whether he is legally approved or not in the market.