Introduction
Before we tell you how to choose the best money lender in Singapore, let us first understand who are money lenders? Money Lenders are people who usually lend out small amounts of money to the people by charging high-interest rates in return. They do not require you to keep any kind of collateral security, unlike banks. They do charge high-interest rates because of the risk they take. A money lender can be a single person or a group of people. In Singapore, there are a lot of money lenders. However, there are many fraud ones also. It is important to choose only licensed money lenders.
How can you choose the best money lender in Singapore
Finding a difference between the licensed moneylenders and fraud money lenders can be difficult at times. We will help you choose the best money lender in Singapore.
- The first and foremost thing that you should do before choosing a money lender is to check their license number. The Registry of Money Lenders in Singapore has uploaded a list of all the licensed money lenders that are currently there in Singapore. Thus, before selecting, make sure that it is registered under the Singapore Government.
- Licensed Money Lenders would have an office of themselves from where they would be doing all the business. All the fraud money lenders would be running over the internet. They would not have an office. Thus before choosing the moneylender, make sure to go and visit the person first. Do all the paperwork at their office. Don’t get scammed through online money lenders.
- All the licensed moneylenders like Lender SG would be charging an interest rate between 10%-30%. If any moneylender is charging an interest rate above this is a fraud money lender. Even though the interest rates are comparatively higher than what is charged by banks, money lenders don’t ask for a security deposit. People who don’t have any bank account or who have a bad credit score, they can easily get a loan from Money Lenders in Singapore.
- When you choose a money lender in Singapore, check for their reputation from their clients. Your moneylender must know how to deal with their clients. If a money lender has a poor reputation in the market, avoid taking loans from them. There are online reviews available for money lenders in Singapore. Thus, read those reviews before choosing them.
- You must decide when you will be repaying the loan to the moneylender. The moneylender must allow you to choose the specific time frame. Usually taking loans from banks would not allow you to choose the repayment time. You need to abide by the bank’s rules. Clear out any doubts with the moneylender regarding the repayment terms. Your moneylender should understand that in case you fail to repay the loan amount on time, they should give you some additional few days.
- Usually, people choose money lenders over banks because of how quickly they can get loans. Moneylenders can provide you loans within half an hour (provided you have all the documents readily available). Your moneylender should not take a lot of time for processing the loan. Moneylenders provide you with a chance of improving your credit score. Thus, make sure to make the most out of it. Choose a money lender that can quickly provide you a loan.
- There are a lot of websites where the licensed moneylenders have uploaded all their policies. This can help you do the research work at home. Thus, make sure to go through the website. Identify those money lenders who have less strict policies. Don’t get scammed by any form of a message or phone call from fraud money lenders. Once you have scrutinized all the money lenders, choose the moneylender that best suits you. Meet the money lender face to face and do the final agreement.
- Choose a money lender that offers you a variety of services and products. Many money lenders provide you with a lot of attractive loan packages. Make sure to choose the best money lender.
- Choose a money lender that has an amiable nature. Moneylenders would want to keep their clients. They don’t want to lose their clients in the hands of their competitors. Thus, choose a moneylender who has a very friendly nature.
Conclusion
There are a lot of requirements you need to check before choosing a money lender. Make sure to check every criterion & choose the best money lender. Moneylenders act as a lifeline for people when they need urgent money. Their ability to provide you with the loan at a short interval of time makes them different from banks. Banks require a lot of paperwork. It can take days to get loans from banks. It may not be possible for you to find a moneylender that fulfills all the requirements but make sure to choose the right moneylender.