Are you currently in need for some extra cash and searching for a loan alternative? Have you decided if you want to contact a bank or a personal Licensed Moneylender?
When it comes to borrowing money, the choice can be pretty tricky. Money is a serious and sensitive topic after all. Any wrong decision regarding that subject can cause havoc in one’s life. So, it is important that you weave your plans wisely.
Both banks and private moneylenders are well-known for the loan services they provide. However, both come with different sets of pros and cons. So, the decision befalls on you, which pros you want to avail and which ones you choose to ignore.
Pros of Having your Personal Moneylender
A moneylender can be a bank, a post-office or simply a rich guy. Despite the difference in the statuses, every moneylender has their fair share of advantages that they provide to their clients. This article particularly talks about the ones that you get from a personal Licensed Moneylender.
Taking a loan from a bank can be a lengthy process. You have to fill several documents and book appointments before you actually get the money. Though the security with bank is higher, the time that gets wasted in all the arrangements is still quite significant.
However, if you choose Fast Loan Approval Singapore instead, things will be much faster. With this alternative, you can get your loan without facing a bunch of documents. Furthermore, you won’t have to prove your income status for the approval as much as you do with the bank.
Along with quick loans, personal moneylenders also tend to provide big loans. Banks have certain amount-limits that they can loan. The limit mostly depends on the client’s income status.
If a bank thinks that an individual will probably not be able to payback, they refuse them loans. Or, perhaps they grant smaller amounts.
Once again, this won’t be an issue with a personal moneylender. They will pay you whatever amount you want without judging your capabilities. They set no boundaries and won’t refuse you for your income.
Reasonable Interest Rate
Licensed Moneylender usually sets lower interest rates for their customers than the banks. An interest is the source of income of a professional moneylender, including the bank. They are giving you money when you need it the most. Surely, they deserve a small cut from the amount. Thus, deducting an interest rate is a common action performed by all kinds of lenders.
Nonetheless, banks have fixed interest rates which are relatively high. That is not the case with moneylenders providing Fast Loan Approval Singapore though. They lend money with low interests which are easier to pay back.
Apart from fixed rates, banks also have fixed deadlines. That means, there are particular dates within which you have to pay off your debt along with the added interest. Not paying within time can bare you to fines and penalties.
However, paying within fixed dates can sometimes be difficult. One may not have the money or the opportunity to drop off the amount. Nevertheless, with personal Licensed Moneylender you get a shot at flexibility.
If there is any issue which is delaying your payment, you can simply convince them for an extension. This is something a bank might not give you.
To borrow money from an informal source, you don’t need to prove yourself in any way. They do not have high eligibility criteria as banks do. As long as you promise to give back the principal along with proper interests, they will give you the amount.
Banks ask for several documents but moneylenders only require you to sign some contracts that officially establishes your loan. They do this to ensure the return.
Collateral are objects you legally possess and choose to give to the bank in case you can’t pay your debt. When taking a loan from a bank, you usually have to assign something that you own as a collateral. It can be cars, jewelries or even houses. The bank will take them away if you fail to return the amount in due time.
Once again, with moneylenders offering Fast Loan Approval Singapore, that won’t be an issue. You can easily take loans without risking any collateral.
Banks depend on the market and are thus susceptible to the market risks. Furthermore, there maybe chances of bankruptcy as well. So, the availability may not always be top notch.
Now, considering the fact that informal sources are not liable to such difficulties, you get a higher availability. That means, you can borrow money whenever you want. Even if one lender is unavailable, someone else will surely be there to help you out. Therefore, it is best for emergencies.
The article lists some of the significant benefits of a personal moneylender. Though they have some cons too, but the pros are quite useful. Nevertheless, it is your call to decide which one might serve you the best.
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