A money lender is the best option when it comes to getting easy cash instantly. Unlike bank loans, moneylenders provide a very soft interest rate to their borrower. If you have ever asked for loans from a bank loan department, you must be knowing the time for repayment.
Most of the loaning banks present in countries like Singapore sets a short period of repayment. Some pay on time, yet some fail to manage such a big amount in less time. But in the case of a lender, the policies are completely different.
Moreover, if you are one of those who do not want to pay the mortgage with high interest rates, then a private money lender is the best option available and who know if a lender is the only choice you were looking for?
As we all are aware of variation in mortgages. Some of the common types are personal loans, home loans and small business mortgage. Not only this, but there are more than two types of lenders in the financial market who are ready to fulfil your loan demands.
Let us know about them more in detail.
- Licensed moneylender
A licensed moneylender is a person or a whole agency providing loan facility to their client without breaking the rules and laws. They come under the act of moneylender, which was drafted by the Singaporean government to protect the interests of mortgage seekers.
In short, those who follow the rules and regulation can be termed licensed lender. They are given the legal license to continue their service of loaning others.
They are controlled by the government officials, and if any changes or reforms are made in the previous laws related to moneylending, then there are the only ones who obey the rules before starting with the process of funding money to seekers.
- Loan sharks
Many experts often say that it is better to borrow money from a bank rather than approaching a loan shark and asking for cash. If we compare bank loans with a loan taken from a loan shark, it proves that these types of lenders are the worst choice you are going to make if you asked for funds from them.
But what does a loan shark mean? No, it is not another species of sharks or any other animal. Loan sharks or better known as illegal moneylender is a person who provides monetary fund by giving direct cash to loan seekers illegally.
In brief, an illegal moneylender is are that category of people who do not follow the rules and regulation of any governing body and/or law-making origination. They deal with illegality and takes down the laws related to the moneylender act.
Why licensed private money lender?
Apart from the fancy name, loan sharks are like those creatures who never show mercy to any of the innocent loanees. Imagine if you have an option to earn money but in illegal, what you would rather choose? An average obedient citizen will always go for the general way.
Loan sharks do the same. Their only source of income is through human trafficking, selling addictive substances like drugs and sometimes even assassin others for money.
If you have purchased a loan from any of these ethnic group, then get ready to be jailed.
Thus, you must always look for a genuine moneylender. Yes, of course, you can also get a private moneylender who has been licensed for caring out his or her profession.
So, if you do not want to hook up with these mortgagers, you must then know the common difference between a legal lender an illegal lender.
Here are some basic tips to spot a licensed private moneylender does not matter which country you are living in.
Tips to spot a licensed private moneylender
- Fake Profiles
Almost every lender in Singapore who are licensed to moneylending has a profile. They have to maintain every detail related to them, like how much money they have funded, what is their market interest rate, which type of lender they are, whether private or public, etc.
So, you can find a legal one by their profile. Wait, there is a catch here!
A loan shark will always pretend to be your friend as well as a legal lender. To accomplish this quality, they can create a fake profile which more or less looks similar to that of the original one. In the worst-case scenario, they can even bribe local government official by giving lots of monetary funds to generate a genuine one.
Every problem has a solution, just like every lock which comes with a key. Likewise, even you can tackle this issue by simply going to the official website of Singapore’s ministry of laws.
The ministry of law has all the records related to the legal lender. You must consider checking your lender’s name before borrowing cash.
- Other aspects
A legal moneylender will not approach you personally. If you incur a pedestrian who is urging you to take loans from them, then he is probably a loan shark.
Anyone can find a licensed private loaner by searching on the internet for the best one. The second most important aspect you must notice is the interest rates.
According to the ministry of law, the maximum interest rates a mortgager can charge is around 5 per cent to 6 per cent. Those who are licenced will never cross the maximum limit. Although some legal lenders often ignore such factors and charge more interest, if they do so, then the lender is subjected to face the consequences.
Apart from this, an illegal loan provider will charge you a high interest rate. You can easily differentiate with regards to the interest rate.
And yes, a loan shark will not be approving your loan if you are demanding to apply for a personal loan. Although if you are looking for a personal loan, then you must apply for small personal loan online. By using these techniques, you can easily spot a moneylender who is reliable and trustworthy.