According to statistics provided by the Registry of Moneylenders, there are approximately 163 licensed moneylenders who have issued $163M by 2017 alone. In 2016, moneylenders issued $1,181M compared to $646M issued in 2015. This is a sharp increase and it indicates that more people are turning to moneylenders for personal loans.
Low income households are particularly vulnerable when it comes to finding credit and financing solutions. They already have personal problems related to illiteracy and low education levels, lack of marketable assets. In addition, the uncertain job market that is compounded by other external factors like inadequate social services infrastructure that would have otherwise enabled them to take part in worthwhile activities. This has affected all aspects of their life including education, employment, health and housing.
Here is a list of 6 reasons why people prefer to get a loan from licensed money lenders despite banks offering lower interest rates.
Mainstream banks and conventional financial institutions take up to 90 days or more to finalize processing of a loan due to strict rules and regulations. Sure there are banks that take lesser time. But it can still take days for it to happen. The approval process involves a lot of paperwork, back and forth bureaucracy that is time consuming. This process is not guarantee that you will qualify for the amount sought. The longer they take to process your application does not mean a higher chance of getting the loan.
As such, licensed money lenders take advantage of this bureaucracy and offer their loans within shorter periods. License money lenders in Singapore are able to process loan applications within an hour or less. This gives them a strong advantage because people no longer have to wait for long periods of time to get the cash they need. Quick cash loans means people will be able to attend to their problems quickly.
Reduction of Red Tape and Paperwork Hassles
Licensed money lending contracts require less hassle and paper work. They have more flexible loan guidelines and processes than banks or any financial institutions. In addition, their management require lesser documentation from borrowers.
However, borrowers are still required to submit confidential financial details and fill out piles of paperwork. This is not only to make sure their loans get approved within the shortest time but also to provide a form of security to the money lenders. With these paperwork, the money lenders at least have a peace of mind that the borrower is working thus ensuring that the loan will be paid back. Without any form of documentation, money lenders will not be able to process your application. This is because the Ministry of Law requires money lenders to provide documentation.
Flexibility and Creative Problem Solving
In the event that there are complex loan situations, money lenders are flexible and will even offer options with more flexible terms than the traditional banking facilities. They will always have solutions for complex situations where the collateral property and assents have challenging ownership issues. In addition, money lenders are willing to take on more risk than banks when providing loans.
To keep up with competition, money lenders now have competitive interest rates. They are also always coming up with better solutions to problems that they encounter with clients daily.
Return on Investment
Many borrowers in the property industry like rentals and contractors usually have a specific goal in mind when they go looking for a loan. Therefore the speed at which the funds can be availed is of essence. The focus is on making a profit which is mostly time bound. The benefit of timeliness and smoothness within which the money lender facilitates the business fellow to make quick return on investment far outweighs the higher interest rates that they impose on the loans.
Sure, interest is chargeable on the loan taken. But if the interest is lesser than return on investment, then it will be a worthwhile investment to take the loan. After all you will be generating more income at the end of the day.
Borrowers may have underlying issues like bankruptcy, tax evasion and penalty issues. Some have family property disputes, foreclosure of a property, lack of proof of ability to repay the loan due to unemployment or solid collateral. There are even cases of medical emergency and more. Banks will not consider issuing loans where they risk losing their money. No business will do that. The moneylenders on the other hand do not require all those qualifications. As long as you have collateral that is of higher value than the amount you seek, they are good to go.
At times, individual just want to borrow a small amount of money in order to get by. It is pointless to go through lengthy bank procedures just to borrow $250. In fact chances are that the bank has a minimum amount that one can apply as loan. This is because they have standard charges that may not be realistic when the loan is too low. Money lenders on the other hand thrive on this majority of small loan seekers for survival. They provide small loans against household items like fridges, cookers, and even watches and mobile phones.
Plus the amount of time require to go through just to get a small loan from the bank is not worth any borrowers’ time as well. Do you want to wait 2, maybe 4 or even 7 working days for a couple hundred dollar loan?
General views of money lending are mostly negative and are based on the worst examples of illegal money lending. This is because the news like to report only news that are interesting and will catch the eyes of people. Only way to help boost the sales of newspaper and magazines.
With proper regulation by relevant authorities, it is a great alternative for customers who have few alternatives when it comes to accessing financing.
Licensed money lenders are a popular financing options among many people in Singapore. This is because of how fast you the entire process takes. Legal Loan Singapore is a great source to help you find good moneylenders in Singapore. There are so many licensed money lenders in Singapore so you may find it overwhelming when searching for a money lender. But do not let that stop you from getting the cash you need.
It will take you quite some time for you to look through the list of money lenders. So let us help you. Legal Loan Singapore is out every week checking out different money lenders. We do this to find out if there are any money lender is reliable and trustworthy. Our survey results are not based only on our opinions. We will also base it on money lender review that we find online and with different sites.
Have a look through our site to find out more if you like. We are constantly updating our site to improve usability. If you have any feedback for us, let us know! We will love to make the site better for all our users.
Interested in knowing who we think are the best moneylenders, get in touch with us. If you need a loan, you can drop your application with us. We will help you send out your application form to reliable licensed money lenders. When we get a reply from any of them, we will let you know via email.
Any questions you have, you can drop an email at email@example.com or call us at +65 6871 4268. We will get back to you as soon as possible.