It is not uncommon for the people to face cash shortages and sometimes they are forced to come up with quick solutions. Although banks are the first choice for most of them, it is not the best choice – as banks have too much bureaucracy and paperwork in their operations. There is also a high possibility that a longer period of time can be taken by banks if the documents are too shady for their tastes. There are other ways of getting the required cash such as mortgaging the assets for getting the loan approved, but it involves a considerable amount of risk of losing your precious assets in case of default payment.
You can approach licensed moneylender in Singapore, rather than banks, for quick loan approvals as they are authorized to provide loan and their activities are guided by the Moneylenders Act. The Registry of Moneylenders updates the list regularly to keep a track of the performance of the moneylenders across Singapore. Although there are many unauthorized moneylenders dealing in the market, legal moneylenders are in demand as they are professionals and they should abide by the law at all times, even while collecting default payments.
These are some of the benefits of licensed moneylenders because of which they are popular in the finance industry:
More lenient towards bad credit scores
Unlike banks, few moneylenders approve loans even for a bad credit score which improves your chances of getting the loan approved. Even though they check the credit history, they consider the present financial condition while verifying the documents. Another reason for the lower level of scrutiny is they provide a smaller amount of loans when compared with banks and hence, they do not follow the stringent documentation process.
Faster Approval
Most moneylenders have developed an online application process which makes the loan approval process faster. You have the option of uploading the documents on the website itself instead of personally visiting the office. If the proper documents are submitted to the moneylenders, you will be able to get the loan approved within hours. This is more convenient than banks where the turnaround time for the loan approval process is much higher. So, why wait for days to get the loan approval if it can be done in minutes. And when sometimes you will not have time to wait for days to meet emergencies, you can also go for fast cash loan services of the moneylenders in Singapore.
Guided by rules and regulations
The licensed moneylenders should follow the guidelines enumerated by the Ministry of Law and they cannot charge interest or fees beyond the percentage or amount prescribed in the law. There are restrictions related to using means for advertising their loan products and in case of any breaches, the borrowers can raise their concern with the Registry at 1800-2255-529 or through email at OneMinLaw@mlaw.gov.sg. You can also pursue the matter through the Small Claims Tribunal or the Court under the Consumer Protection (Fair Trading) Act. The general rules and guidelines for the moneylenders are changed by the Ministry of Law depending on the situation and economic condition. Hence, your interests are protected and secured while dealing with licensed moneylenders and can be approached for loan assistance without any hindrances. When the situation demands immediate action, licensed moneylenders are the need of the hour as they will come to your aid at short notice.
However, along with the benefits of availing the services of licensed moneylenders, there are a few concerns raised while dealing with them. As they fund even the applicants with a bad credit score, they charge interest rates more than that of banks. This may result in repaying higher amounts when compared with banks, thereby, draining your income for over a period of time. Hence, proper research is required while selecting the moneylender by considering the loan amount required and the urgency of the situation. It should also be noted that loan approval depends on the discretion of the moneylenders and they can also reject the application. Thus, successful approval is not always guaranteed. Also, certain moneylenders may not be open to changes in the loan contract and borrowers may have to agree to certain unfavorable clauses for getting their loan amount.
Still, licensed moneylenders are preferred since a small amount of loan can be availed quickly without any hassles. The pending credit card payment, medical expenditure, or any other urgent expenses can be met without any delays and by avoiding complicated documentation process followed in banks.