A loan officer from a licensed moneylender keys in client information in their computer.

5 reasons why a licensed money lender can be a saving grace

4 min

Have you reached a financial dead-end? Chances are, your instincts are currently directing you towards a loaning company that promises a quick application process, instant approval, and mundane loan fees. But, while any lender can offer amazing loan deals, it’s only a few who can stick to their word. This is what distinguishes a licensed money lender in Singapore and an illegal loan shark.

This article highlights the five reasons why a licensed money lender in Singapore will save you time, money, and peace of mind.

1.  Licensed money lender interest rate tends to be affordable

The first thing you’ll save by using the best licensed money lender in Singapore is money. Essentially, Singapore’s Ministry of Law has set a minimum interest rate that lenders can charge legally. Any loaning agency that outstrips the market interest rate, therefore, squares it out with the law.

Currently, the maximum rate that lenders can impose on their customers is 4% per month. This rate stands for all income levels and both secured and unsecured personal loans. However, it’s not uncommon for illegal lenders to overcharge their clients. Some of them charge monthly interest rates as high as 10% per month, in addition to other additional fees. Another way they’ll steal from you is through the wrong computation of interest and imposing pesky fees. To avoid all this, simply conduct a quick Google search saying, “Where can I find the best licensed money lender near me?”

2.  A licensed money lender employs ethical techniques to recover his debt

Harassment and threats are the two flagship languages of a loan shark trying to collect their dues. Unfortunately, many people fall prey to these unethical practices simply because they fail to do their due diligence. The truth is, the smooth talk characterised by scammers ends with a phone buzz notifying you of the money transfer. What usually follows are unfriendly recollection attempts marred with disrespect. The best licensed money lender in Singapore adheres to the Ministry of Law’s lending guidelines. These guidelines forbid lenders/debt collectors from using any form of violence to recover the debt. This includes threats, insults, or physical violence.

3. A hassle-free application process will save you time

Looking for a quick loan to sort an emergency? A licensed money lender in Singapore is your best bet. These loan servicers are renowned for their seamless document verification and loan approval processes. As long as you legally fill in the required information, you can expect your loan in one day or less!

This is in massive contrast with tedious, traditional lending paths such as banks. Opting for the best credit moneylender in Singapore means you’re buying speed and convenience as well.

4. Access to a variety of loans

While most illegal lenders bundle their services into one or two loan products, licensed lenders offer various loan packages with different terms. The best money lender who is also licensed should at least have the following categories of loans:

Categorising loans in this manner enables customers to acquire different loans for different purposes. For instance, a medical emergency loan is highly likely to be approved faster since someone’s life is on the line. Also, you can negotiate loan terms and amounts depending on the intended purpose.

5. These money lenders are easily accessible through their offices

You’re probably wondering, “How can I access a licensed money lender near me?” One benefit of using a legal lender is that they have a physical office that houses all their operations. This means that if you ever need a person-to-person consultation, you don’t have to do it online, where identities can be concealed.

Having a physical office boosts customer confidence and gets you in the loop of who you’re dealing with. So should anything go wrong, you know where to go and who to look for.

One cardinal rule of borrowing money is that you should always leverage the best credit moneylender. And one mandatory quality of an ideal and best money lender is that they MUST be licensed. Licensing is not a mere proof of legality, but it also attracts a ton of other benefits. You’ll get access to the best-licensed money lender interest rate, short approval, and flexible loan terms.


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