Getting a personal loan can be challenging for different kinds of people. There may be a number of hindrances that may stop you from getting approved in times of need. Banks, while ideal for loans, are usually strict with their requirement. Someone who does not earn much or who, for some reason, has a bad credit score is unlikely to get an approval.
This is the time when non-bank financial institutions and private money lenders come in. They offer fast approval with different amounts and packages with less strict requirements. While the interest rates are relatively high, these private moneylenders are efficient in coming up with terms of payment that are flexible and adaptable to the clients’ needs and capacity.
Since numerous firms offer these services in Singapore, they are all competitive in providing prospective clients with the most ideal and attractive packages. When it comes to immediate financial needs, help is always just around the corner.
What Are Licensed Private Money Lenders
Licensed private money lenders are alternative to banking institutions. They are non-conventional lending entities or individuals that offer money loans to those with money problems. More specifically, they target and cater to the needs of those who were rejected by banks. Generally, money lenders offer short term loans with higher interest rates than banks. However, when it comes to loan approval, moneylenders are faster and more lenient than traditional lending institutions.
How Do Licensed Private Money Lenders Work?
When it comes to the business operation process, traditional lending institutions and singapore money lender are governed by the contracts they made with their customers. Loan contracts protect both the rights reserved for both borrowers and licensed moneylenders.
One of which is the right to file a complaint about any breach of contract committed by the other party. The contract contains the credit terms such as the amount, the interest rate, the repayment plan, and additional pertinent information. Borrowers have the responsibility of settling their credit obligations.
At the same time, moneylenders are bound to respect and observe all the agreed terms in the contract. This means that they cannot charge an interest rate different from what has been stated in the contract. The types of loans offered by a licensed moneylender include personal loan, foreigner loan, payday loan, business loan, and bridging loan.
Licensed Money Lenders: How They Can Help You?
Cash emergencies can happen to anyone, regardless of the income range. There will be times where your paycheck gets delayed for whatever reason, and you happen to have outstanding bills that require immediate attention. Bank loans are a bit too much. A loan shark should never be an option.
Your best choice would be a legal money lender. It does not require a tedious loan application process like banks, and its credit operation is not illegal, like loan sharks. You may still worry because your credit record is not ideal. Worry no more because that’s the very gap that a licensed money lender fills. Just expect that a fast cash loan comes with high-interest rates. With a proper repayment plan and sticking to it, you will be able to pay your credit.
If you want to lower those interest rates, you have the option to do so by getting a guarantor that has a good credit score. The lender would be more encouraged to approve your personal loan at low interest if they can ensure that in case of default, there will be someone to answer for you.
They were offering collateral that may also lower interest rates. Lastly, taking a payday loan is also an option. In a payday loan, clients write out post-dated checks. Usually, due dates are the days when the borrower’s income enters his or her account. To apply for that, only proofs of employment and payment are required, and credit standing is immaterial.
Another way that money lenders help customers out is by providing a source of medical financing. Medical expenses should be paid as fast as possible. Otherwise, life could be in danger. During medical emergencies, a personal loan for medical bills is your best option. The application process for this type of loan is quick and straightforward. Only a few documents would be asked, and in a scan of hours, you have the money you need.
Many money lenders in Singapore and elsewhere ensure security by asking for collateral from their clients. However, a considerable number of licensed moneylenders offer personal loans without asking for collateral. Many people seeking loans prefer a no collateral option, especially if the money they are borrowing is not that much.
This is why it became standard practice for a lender to offer these kinds of no collateral loan package to private individuals as long as they have a good credit standing. A private money lender can even provide someone with a bad credit standing a loan, given that the specified loan amount is still reasonable. If you have a bad credit standing and you need a personal loan or some private money to propel your financial status, there can always be a licensed moneylender who might be willing to help you.
Reasons To Borrow From Licensed Lenders
1. Fast Approval
Borrow from a licensed private money lender because you can have your loan application approved for less than two hours. Others even get to have theirs approved for less than 30 minutes. For as long as all the necessary documents are readily presented upon loan application, there’s nothing left to be done by moneylenders but to approve it.
Moneylenders can afford to be fast and lenient when it comes to loan approval because they are small. The risk of not being paid back is low. Licensed money lenders are unlike banks and their other traditional counterparts. They do not require collateral like a house, car, or other valuable property to grant credit. Neither surety nor guarantor is asked from you to secure your loan.
Licensed moneylenders do not even have a bureaucratic management level personnel tasked to assess clients’ financial capacity meticulously. The loan’s fast approval is deliberately done to accommodate as many Singaporeans as possible to ease their financial burden and answer their financial emergencies.
2. Steep Interests
Although the majority, if not all, of licensed money lenders in Singapore belatedly inform clients of steep interest rates, they do this for a purpose. They do not want these interests to outwardly discourage customers from borrowing money. Clients who have an urgent need for a small loan with fast approval might get intimidated by interest rates without getting the opportunity to explore loan packages that may be offered to them by licensed money lenders.
Steep interests are in no way a means to deceive customers. Singapore money lenders can have the prerogative to promote itself. It is one of the rights reserved for licensed moneylenders. Customers should do their part instead. They have to do some research. They should know which moneylenders are registered under the Ministry of Law. From there, they can locate which moneylender can be the most suitable for their financial needs that can offer the best interest rates.
3. Suitable For Smaller Amount
A licensed money lender in Singapore is very risk-averse. For that reason, moneylenders only offer small loans that are enough to cover up financial emergencies. These emergencies can be urgent medical expenses, personal accidents, car repair needs, and other home emergencies. A small loan is a risk-averse type of loan. This can be paid up quickly by customers through their income.
Hence, moneylenders would not be exposed to the impacts of negative outstanding debts. Moneylender Singapore is even made to comply with the loan cap that should not be more than 2 – 4 times the monthly income of a borrower. This loan cap also prevents borrowers from borrowing money that cannot pay.
4. Doesn’t Scrutinize Credit Scores
Banks and financial intermediaries are very particular with the credit score of a borrower. It is an excellent indication of whether one will be able to pay or not. Having a bad credit score would more likely deny a bank loan application. That is not the case with money lenders in Singapore.
Your credit score, even a bad one, cannot prevent you from getting credit. You need the right loan package. Licensed private money lenders are more tolerant because doesn’t scrutinize your credit score, however, they will only loan you the amount based on your paying capability.
How Do I Get the Loan
A private moneylender Singapore typically possesses an advantage over banks because of their less strict requirements for unsecured loans. However, this set-up should not be exploited to get into an irresponsible spending frenzy. After all, unpaid loans and debts can cause many problems even if it is done with a licensed moneylender. Therefore, the best way to get approved for a good loan amount is to improve your credit score. This is a good starting point in dealing with your chosen money lender. This can be done by getting loans with a smaller loan amount and paying them on time. Your records will reflect this, and it will afford you a good impression with a licensed private money lender.
However, there may be times when your bad credit score coincided with a period of the urgent and critical need for cash, and the bad credit score hinders you from getting a reputable lender like banks. In these times, people usually find themselves scrambling for a lender in Singapore.
At times, people tend not to bother anymore in knowing whether the lenders are licensed or not. This is dangerous because ending up with someone who is not a licensed moneylender may lead you, not just with financial troubles, but also with some situations with the Ministry of Law in Singapore. This is why, even in the time of great need, a licensed moneylender or a legitimate non-bank financial institution is the way to go.
While some may argue that a licensed money lender in Singapore tends to ask for a comparatively high-interest rate, it is still a better choice than those who are not licensed or loan sharks. One of these non-bank institutions that will surely not give you trouble with the Ministry of Law of Singapore is Fortune Credit Pte Ltd.
Fortune Credit Pte Ltd (Copyright 2020), like other Singapore based financial firms classified as Pte Ltd, is committed to providing fast cash loans that are intended to give clients ways to address urgent needs without resorting to unethical means. Compared to other licensed moneylenders, Fortune Credit Pte. Ltd also offers more kinds of loans than other licensed private money lenders in Singapore.
The personal loan package offered by Fortune Credit Pte. Ltd. has a relatively low loan interest rate of 1% to 4%. It is also unsecured, which means that applicants are not obliged to issue collateral and other pledges and mortgages.
Furthermore, the repayment tenures are flexible. Such flexibility may not be afforded by all licensed moneylenders in Singapore. The personal loan application is made in these three easy steps: 1) Call or Apply online, 2) go for in-person consultation in their office, and 3) receive the cash on the same day. Minimum eligibility and other requirements are found on their website.
Licensed moneylenders in Singapore who are willing to give you personal loans abound. There are many, and you may feel overwhelmed with choices. But looking for the best one is not that hard.
You may need to ask yourself the following: Are they operating with a license? Are they offering you packages appropriate to your needs? Is the application process easy and convenient? Are the repayment options flexible? Is the interest rate reasonable?
All of these questions are justified by Fortune Credit, and as a licensed moneylender in Singapore, Fortune Credit is committed to only provide the best loan deals to all of Singaporean citizens.