1. Singapore Licensed Moneylender: How Are They Different From The Common
Banks?
Singapore, May 07, 2014 - (Orangecredit) - The one thing that is more like some practical joke in the world of banks is the
fact that, the lesser you require to borrow money, the more banks are interested in lending it to you. Confused? Let us
explain it to you better. Who are eligible to borrow money from a bank?
The eligibility criteria of a bank to lend money will ensure that you earn around $15k a month, have enough property of
your own to live by and actually have no good reason or need to borrow the sum. This is the reason a lot of people in
Singapore decided on turning into licensed moneylenders. However, the question that has been bothering the people most is
the fact that, are they actually an alternative that is practical? And do they truly have more relaxed terms and conditions as
against banks?
Let us consider the option more closely.
Who is a Singapore licensed moneylender?
The Registrar of Money Lenders in Singapore, licenses the money lenders here.
The main idea of the license is to restrict the money lenders on the amount that
they can loan, the interests that is acceptable for them to charge and the fees that
they are capable of charging.
Apart from the fact that the both lend money to those who need, banks and the
moneylenders seemingly function on complete different levels. The differences
include the points mentioned in the article below, so please continue reading.
Smaller loans are focused:
As against a bank loan, a Singapore business loan, Singapore personal loan or
Singapore payday loan by a Singapore moneylender will insist that the loan
amounts are very less. Even though the legal restrictions for these lenders allow
them to lend three to four times the monthly income, the lenders are quite
reluctant to offering any loan amount that is very big.
Faster processes:
The other thing that makes them different from the regular banks and their processes is the fact that they have a good speed,
when it comes to processing the loan amount. Provided you are capable of producing the documents in full, they are at
times, even ready to offer you the loan amount in around 30 minutes, which is quite fast even for them.
Rates of interest are often high:
Now, this was quite obvious as the target market of these money lenders are the people who are in need of urgent loan. And
most of the times the interest rates are not even disclosed over the phone or the mail, thus ensuring that the people availing
the loan amount find it inconvenient to compare the rates. However, the most common rates of these moneylenders’ ranges
between 25%-30%, which if you are in dire need of loan is not very big a rate.
The money lenders are more forgiving about the credit assessment thing, if you have defaulted on the payments of the loans
before, which is quite a difficult thing for the banks. When a bank will wait for about 5-6 years after the letter of discharge,
a Singapore licensed moneylender might let you borrow, just by having seen the letter.
Source- http://www.nicole1.newsvine.com/_news/2014/05/07/23788837-singapore-licensed-moneylender-how-are-they-
different-from-the-common-banks
Orange Credit PTE LTD
“Singapore Finest Online Financial Company to support you 24*7”
Office:- 810 Geylang Road #01-56/57 City Plaza Singapore
409286