For most people, the best option is the moneylender when they need a quick loan. The bank doesn’t offer small loans to the borrowers and luckily if they get one then they need to pay a high-interest rate which becomes hard for them to repay it. but when we are talking about the moneylenders the loans are provided much more quickly and the interest rate is also low.
The reason behind low interest is also because of the competition in the market and to attract the borrowers they need to keep the rates low. There are many firms offering loans but you need to find out the one that can be trusted and that is why you need to take the right decision before applying for a loan in any firm.
The licensed and the unlicensed firm
You must have heard that there are licensed and unlicensed moneylenders in the market. According to the government rules the licensed moneylenders are regulated to take the various loan procedures while the unlicensed ones are not. When you apply to a licensed firm you stay protected from excessive interest rates and unfair rules and regulations. The unlicensed firms do not follow any such practices and that is why you need to do proper research and find a trusted firm.
Why it is beneficial to take loans from moneylenders?
The moneylenders provide loans to the borrower quickly and they don’t need to wait for the long procedures as conducted in the banks. The interest rates offered by various firms differ based on many different factors and you should read all the policies properly before applying for the loan.
The banks have got a lot of paperwork to process and also a separate team to get the loan processing to be completed but the moneylenders only ask you to fill a form and some simple credit check to provide you with the loan. Where the banks can take weeks and even months to get your loan approved it is just a matter of day one or two to get the loan from a moneylender who is good at money lending in Toa Payoh.
They don’t ask their borrowers to have a high credit score and there are some of the firms that even don’t go through a credit check. The repayments of the loan are simple and there is not a lot of burden on the borrower because of the low-interest rate.