Are Banks That Different From Money Lenders In Singapore?
For borrowers who are considering taking or have applied for loans. It could be payday loans or personal loans in Singapore. There are several ways that a person can borrow. Licensed moneylenders and banks are among the most popular options.
These are some that you may choose from. These two money lending providers are secure. Thus you know that you are protected fully. This is because they are legally licensed by the Singaporean Law Ministry (MLAW).
Therefore, there are some differences as you go through banks or moneylenders. These you need to be aware of once you decide to borrow. There are several things that you need to be aware of as a borrower. This is ahead of making the decision on the lender you will borrow with.
Also, you need to consider these aspects as you decide on the amount. Then look at the loan terms to help you find the right deal. This way you will get a reasonable deal that you can manage. This is when you are borrowing from these loaning entities.
As far as the credit checks go, the licensed moneylenders have the best deal. Oftentimes, these lenders do not require credit checks before giving approval. But when they do, it is possible even for the low credit borrowers. It is likely that you will get your loan approved. Even when it is meant for smaller loaning limit.
However, for the bank when a borrower does not have huge credits. Or even a good borrowing history. Then getting a loan of any amount from banks will be tough. More so when you urgently need some funds to help you cope.
The Amounts In Loan You Can Access
Licensed lenders will normally offer you lower loan money. But you may compare a few legal lenders before you get a loan. Normally, their loan amounts are often set from $1500 to $2000 for most people. Then again, when you decide to go to a banking institution.
You will find out that they often are ready to offer you more, only that you will need to present tangible assets. As security for loans, you wish to take from banks. Actually, most Singaporeans will take a mortgage of $30K from the banks. With this banks will often approve a borrower with the terms.
Therefore, for a person who is need of urgent cash. You will end up going for a moneylender offering instant cash. But then again when you need loans running for a longer term. That is if you want to get more money.
More so when you need something that is more stable for a borrower, so you can decide to deal with a bank once you are prepared to get a personal loan.
Interest Rates You Pay
Licensed moneylenders might charge some higher rate. The reason being this involves lots of risk by offering this loan. Since there is a possibility of having defaults. Also since they will provide you instant approval. They will require some kind of equity. This will mostly come as some kind of interest payment.
On the flip side, banks will charge you a rather low rate of interest. However, you will also have to deal with long waiting periods. This is in addition to lending limits, restrictions.
Not to forget the truth that you will be getting a personal loan. A loan that you will be paying back for a longer time.
Loan Approval Speed
As far as fast cash is concerned, moneylenders are your best bet. You will not only get the loan approved fast. Mostly in several days and in 24 hours in most instances. Even then you will be able to get the money you need ready at hand. This will make it possible for you to use it at once. Then again, when you choose to deal with a bank.
In such instances, you will have to wait for some time. Mostly the wait will take at least two weeks. This the time needed for the banks to go look through your application. As well as your paperwork, credit rating. Not forgetting your borrowing records and so on.
Hence, you will have to wait for a while with a bank. Luckily, when you decide to work with a licensed moneylender in Singapore. You will end up getting the instant cash application approval you need. Thus making the instant loan money you need easily accessible.
Always Work With The Best Lender
It is advisable that you take the time to do thorough research. In so doing, you will be able to get the right moneylender. This will be helpful since you may choose a trustworthy moneylender. Make sure that you only deal with licensed moneylenders.
The right one who will be ready to accept your conditions.
Also, keep in mind not to sign any loan contract. But only when you accept the conditions of the loan. Make sure that you read through carefully the requirements of the loan taken.
You should even look at the moneylender’s license. From this, you could confirm the credibility of their license. This will also prove that they are operating by law. Their license also has to be from the Moneylender’s Registry.
As you are carrying out your research, ensure that your decisions are based on your research, as this will help you find the right legal lender. Your lender needs to be able to meet the above guidelines easily.
Singaporeans are spoilt for choice. Licensed moneylenders and banks as some of the popular choices. There are so many options for you as a potential borrower. For this reason, you need to compare the options available. More so once you decide to take out a loan.
For Singaporeans who are looking for the best choice, this is when given between moneylenders and banks. These are some of the things that will guide you as you decide. More so as you pick the right lender to get a personal loan with.