How to Pick a Good Money Lender in Singapore?

When you are in need of financial aid, there are a few options that you can approach in order to acquire a loan. These options range from borrowing from a close acquaintance, going for a bank loan, using your credit (if available) or going for a money lender. The last option, a money lender is mostly hassle free, reliable and quick. However, they usually come with a higher interest rate than the rest of the other options. Therefore, you need to be careful when picking a moneylender. Since going for a moneylender usually comes as a last resort for many, there are many opportunistic moneylenders out there who will abuse your situation to get an unfair profit for them. Read on to find out how to pick a good money lender in Singapore.

How are money lenders different from banks?

Moneylenders are often individual people or companies which lend money to clients with a higher risk. They do not usually go through the same intense background checks on the credit history of the applicant in order to approve a short term loan. With a number of security checks that banks put you through especially in a financially desperate time, going for a moneylender usually is the more convenient way to go. However, the interest rates that the moneylenders demand are substantially higher than what banks usually charge. Like every good and easy thing in the world, moneylenders come with a cost and a rather high one at that!

How to weed out the bad money lenders from the good ones?

First and foremost, go for a moneylender who has been in the business for a considerable time. In addition, it will be good if they have good reviews from clients who have borrowed from them before. You can also talk to your peers about the positive experiences they have had with moneylenders before. The internet is also a good source for good moneylenders! Go online and check the reviews on trustworthy moneylenders as well.

Before you get into any agreement with your moneylender, ask them to take you through their application process, interest rates and payback terms. If you have a bad credit history and going for a lender who is willing to lend you money, it is extremely important that you thoroughly look into the terms of agreement. Because if a higher interest rate is offered, it can get you to a lower level in your financial status.

Summary

Always go to more than one moneylender and compare the pros and cons before settling for one option. With the highly competitiveness in the industry, you will likely get better rates. Only if you put a little effort on doing some research before going for the first moneylender that you see. But bear in mind not to allow everyone to check your NRIC. Because it will leave a permanent mark on your record once they scan your NRIC number on your system. If you do meet a good moneylender and they notice your long record, it will leave a bad impression. This may lower your chances of obtaining a loan. Do not agree to any condition out of desperation! 

We are the best moneylender you can find in Singapore, we have been in business for almost 15 years! As a licensed moneylender, we only provide legal loans to our clients. All our loans are binded by law and regulated by MinLaw and IPTO. If you are looking for a loan, do drop us a message if you have any questions. Or you can fill in an application form and we will get back to you asap with regards to your loan application.