Ever heard of scammers who persuade innocent people into getting loans of a large amount of money? Well, most of these scammers end up threatening people’s lives or even hurting their families. These scammers are mostly known as loan sharks. Most of these loan sharks forge licenses and run their illegal businesses which may also involve money laundering.
When planning to get a loan, make sure you check out people’s reviews on the various moneylending agencies to avoid future misunderstandings. An example of a legal money lender in Singapore is SuCredit Pte Ltd. Alternatively, you can also access a loan from a bank.
4 reasons to engage a legal money lender in Singapore
Getting a loan from a moneylender has its advantage in various ways. They include:
1. Low-interest rate
When it comes to borrowing money from a moneylender, they tend to vary their interest rates. They are mostly lower compared to those in banks. The lowering of these rates makes it cheaper to borrow money from these moneylenders.
An individual takes a loan when he or she is in a considerable financial position. The main reason behind that is to avoid overstretching while repaying the loan. This is a great opportunity for anyone regardless of your income.
2. Negotiations are allowed
When it comes to moneylenders, you can negotiate on the amount you need as well as the interest rate. One has the freedom to explain why he or she deserves the amount and also discuss the repayment period. In banks, you cannot find such a deal.
This is because banks have constant amounts as well as interest rates that cannot be changed for an individual. This is where you could build your trust in the moneylender. Having a good creditworthiness quality will you help you even in acquiring future loans. This is one of the superpowers that make money lenders prefer more.
3. Fast approval
When applying for a loan from a moneylender, the process tends to be fast. All you need to do is submit the required documents. These documents include:
- Your debt-to-income ratio.
- Your credit score and history.
- A photocopy of your identification card.
- SPF statements.
- Income tax statements.
- Residential address.
- A printed copy and an original copy of the 3 previous payslips.
Once the moneylender has gone through your application, your loan will be processed immediately. You can get the money on the same day you apply. Indeed, it is quite a fast process.
This comes in handy when you need the money urgently. Urgency in money may be due to unpaid school fees, medical bills, wedding expenses, unpaid rent, and other house bills as well as business funding.
In other words, moneylenders offer hassle-free loan applications. They also have a smooth process of verifying submitted documents.
4. Not so strict rules and regulations
Banks are known to have strict regulations when it comes to giving out loans. Banks tend to avid loaning small businesses or even young businesses. They prefer loaning people with a high credit score as well as high regular cash flow.
These regulations limit a lot of business people as well as individuals. Moneylenders are not strict and loan whoever is in need as long as the required documents are submitted. If you own a business and the bank denies you a loan, this is the best opportunity to turn to a moneylender. However, they still have some rules and regulations that need to be abided by.
How To Identify Legit Moneylenders
You might be looking for a moneylender within your area to acquire quick loan cash. You should be aware that there are loan sharks within the moneylending business. They are risky and can frustrate you. Yes, they will offer money quickly but are not legit. Here are some of the ways you can identify a legit moneylender:
1. They ask for collateral
As human beings, we like getting things easily. Loan sharks tend to use that trick to take advantage of innocent people. Most of the times loan sharks do not ask for collateral to gain your trust quickly. Legit moneylenders ask for collateral to complete the contract.
If you go to get a loan and the money lenders are too willing to give you money think twice. Yes, there is the reason giving of money, but if they pester you to take the money. That should act as a red flag.
2. They do not ask for personal information
A legal moneylender cannot ask you about your private family and marriage life. The only private thing that could maybe be asked is the number of wives and children you have.
A loan shark can ask you to tell him or her all the private details regarding your family. They record these details and may use them to hurt you when you fail to repay the money.
3. Checking out customer reviews
Most moneylenders have websites where people can apply online. You could try to research people’s reviews on different money lending agencies. This helps you know if the moneylender is legit or not.
It is advisable to avoid agencies that have no reviews at all or bad ratings. If there are also lots of complaints regarding a certain moneylending agency, avoid it.
When thinking of taking a loan, you should be very careful with who you are dealing with to avoid misunderstandings. You should also read the contract and understand it before signing it. You could get a long-term loan or a short-term loan from a moneylender. It all depends on your preference.
Loan sharks give their loans at high-interest rates which are not ethical. The kind of loans you can get from a moneylender are business loans, education loans, personal loans, wedding loans, house loans among many others. If you need clarification regarding loans, you can visit your preferred moneylender before applying for the loan.