The Reasons Why Licensed Moneylenders can be an Alternative to Banks

The writing shows a few benefits of licensed moneylenders that make them become an alternative to banks.

What do you do when you are short of money and desperately need to take some quick credit but can’t do so because of your bank’s meticulous bureaucracy? Don’t worry! There’s no need to start mortgaging assets and selling things to pawn shops. When you have licensed money lenders on hand, you never need to worry about making a financial mockery out of yourself in the midst of a minor cash crisis.

Actually, the lower the loan amount you require, the stronger your chances of getting it from a licensed money lender. Now we will take a look at how these professional loans have given Singaporeans a convenient alternative for taking small short-term loans.

Licensed money lenders in Singapore have received their license from the Singaporean Registrar of Money Lenders. They must adhere to all guidelines on lending amounts, service fees and licensed money lender interest rates in order to do business.

Luckily, licensed money lenders are reforming their image as thorough businessmen who abide by all Singaporean laws and only hire accredited debt collection agencies to recover their money. But the real USP of licensed money lenders lies in their ability to provide financial assistance on a level that banks simply do not offer the flexibility to attain. Now let’s see some of benefits offered by licensed money lenders that supersede the services of banks:

Small loans
I contacted six different money lenders and all of them were emphatic on small loans.
Money lenders are a boon for Singaporeans looking for small loans that can be utilized for minor things like paying off medical bills, repairing your car, etc. Licensed money lenders stick to these risk-averse loans to reduce the negative backlash from unpaid debt.
Legally, the lending limit guidelines provided to these independent lenders is no more than 2-4 times the monthly salary of the borrower.

Instant approval
Since licensed money lenders primarily focus on small loans, the turnaround time and process of loan approval is tremendously fast. Additionally, there are barely any bureaucratic layers of management who extensively deliberate over your request.
Any Singaporean borrower who has his financial documents in order can get his personal loan approved in the span of 30 minutes.

Steep interest rates
Even though a majority of money lenders insist on negotiating rates only after personally meeting you, it does not mean they are trying to cut underhanded illegal deals. It’s simply a smart business strategy on their part to lock in Singaporeans desperately looking for a small loan without wasting much time.
Since most borrowers are short on time and patience, they do not give much resistance in complying with the steep 25%-30% licensed money lender interest rates. Hence, it’s recommended to pay a visit to a few finance blogs to shop for the best possible rates.