While the practice and concept of money lending might seem archaic to most people, what with the advent of modern banking and online payment systems like PayPal, Paytm, Venmo etc. In Singapore, however, this profession is quite common and fairly popular.
Gone are the days of borrowing funds from shady moneylenders with exorbitant interest rates and cutthroat business methods. The money lending business in Singapore is well received by the general public due to the fact that most establishments are government registered. The lenders often display their licenses on their websites, guaranteeing legal and trustworthy services.
Money lending is, at its root, a high-risk line of employment and the government of Singapore has taken the necessary measures to ensure that the people in this line of work have been given sufficient worker’s rights and the occupation itself is a legitimate operation, much like any other trade.
Grounds for gaining traction:
There are multiple reasons as to why Top Licensed Money Lenders in Singapore are gaining such tremendous popularity:
- Prompt approval and simpler procedures:
Regardless of how prepared anyone is, sometimes financial crises can strike out of nowhere and they are left with little to no options. In situations where an individual would require funds immediately, approaching banks for a loan is not an attractive option because of the formalities involved. In an emergency no one wants to sit through long, drawn out processes which ultimately do more harm than good in regards to time sensitive situations. This is where money lenders come in. They understand the predicament you are in and approve your request for a loan almost instantly. This coupled with easy procedures and minimal hassle makes money lending an appealing option.
- Versatility and flexible repayment schemes:
In regards to the terms and conditions of your loan, there is much more room for negotiation here when compared to the likes of banks. You can customize the repayment plan according to your needs and requirements, thereby reducing the pressure on you.
- Good credit scores are not a prerequisite:
A good credit score usually does not affect your request for a loan from legal money lender. In fact, the collateral offered by some of the Top Licensed Money Lenders in Singapore is often of critical importance as compared to the credit score.
- Low interest rates:
The interest rates charged while repaying the loan are reasonable and tend to remain constant with minimal or no fluctuation.
- Excellent services:
Customer service provided by these money lenders is outstanding and customers are almost always guaranteed satisfaction.
While utilizing the services of money lenders it is important to anticipate all the pros and cons that is a consequence of such a transaction.
Types of Loans:
It is important to note that different types of loans provided by Top Licensed Money Lenders in Singapore come attached with different clauses. You must scrutinize each one thoroughly before choosing one.
- Personal loan:
Personal loans are a type of unsecured loans that are usually short term. There are two types of personal loans:
- Term loan: This loan comes with a fixed period of time and has to be repaid in regular monthly instalments. With a term loan, the loan has to be paid off in full by the end of the fixed period.
- Revolving loan/personal line of credit: This type of loan gives you a credit limit that can be used whenever needed and a base monthly payment of 2.5% or SGD 50.00, whichever is the higher amount. With a revolving loan, you can continually make use of your credit once the amount owed has been repaid.
- Can borrow an amount equivalent to up to four months income.
- Set interest rates
- Premature repayment options
- Payments are the same each month
- Payday loan:
This loan makes it possible for you to acquire a small amount of cash at a high interest rate which needs to be repaid in 30 days or at your next pay check.
- Convenience and flexibility
- Fixed interest rates
- Quick approval
- Eligibility criteria is simple
- Foreigner loans:
These types of loans are commonly referred to as foreigner loans since it involves lending money to a foreigner who possesses a valid work permit/employment pass in Singapore.
- Not subjected to extensive background/credit check
- Low interest rate
- Minimal documents required for loan to be sanctioned.
- Business loan:
This type of loan provides funds to numerous and diverse types of businesses launched by an individual/individuals, organisations or by a bank and is required to be repaid at a particular date with a specific amount of interest.
- Accessibility and convenience
- Immediate solution to a “short on funds” situation
- Multiple loan payment options
- Education loan:
These loans were conceived to assist students with college tuition, living expenses and books. The repayment programme is initiated as soon as the student graduates and the interest rates are usually low.
- High approval rates
- Any student is qualified to receive this loan
- Vacation loans:
This type of loan is used exclusively to pay for vacations, trips, expeditions etc.
- Receive cash right away
- Only start repaying after you come back from vacation
- No hidden fees
- Short term loan:
Also known as caveat loans, this type of loan is used to help businesses who are short on funding fix their financial issues and get back on track.
- No application fees
- Loan is sanctioned rather quickly (in a matter of hours)
- Flexible and easy
To become a Top Licensed Money Lenders in Singapore, there are a few criteria that need to be met:
- Large number of favourable reviews on their Google profile
- No negative reviews should be found in any forum, directory, moneylender review sites etc. online
- License should not have been revoked by the Ministry of Law
- A licensed moneylending experience of over 8 years
This industry has made the process of money lending and repaying a simpler one by using mostly the Internet to deal with clients. It was designed to cater to the finance needs of the general public and has been a great success thus far.