During financial emergencies, getting a loan from a licensed moneylender can be the suitable solution.
Usually, financial circumstances can be unpredictable, such as when one day, all is well; the next, some unforeseen expense knocks your finances off balance. A sudden financial emergency can be a sudden medical bill, an urgent home repair, or an unexpected business expense suddenly appearing out of nowhere. These are occasions when it all feels so overwhelming. In times like these, you might find yourself requiring the help of a licensed money lender.
Therefore, in this article, we will take you through how a licensed money lender can help you with your financial problems, the benefits accruing from them, and the things you must consider in coming up with a decision.
Who is a Licensed Moneylender?
A licensed moneylender is a financial institution or an individual cleared and regulated by the Ministry of Law to provide loans. These accredited money lenders operate under strict rules and regulations that are put in place to protect the borrowers from being taken advantage of.
Benefits of Borrowing from a Licensed Moneylender During Emergencies
The following are the benefits of borrowing from licensed moneylenders whenever you are in a financial crisis, and a loan is the only option to help you get out of the mess.
Fast Cash Availability at the Time of Emergency
Emergencies never wait, nor should you. The most apparent benefit derived from having to borrow from a licensed moneylender is that it’s speedy. Banks take a lot of time for loan processing, usually in average days, if not weeks.
On the other hand, loans can be approved and dispersed within 24 to 48 hours maximum when resorting to licensed money lenders.
Easy Approval Criteria
Banks and other financial institutions have tight lending criteria. For instance, approval can be tricky with poor credit or a lack of other financial documents.
On the other hand, licensed money lenders offer a more manageable platform with which to deal. Their terms for approval are less stern, with an open ear toward at least your capability to pay instead of a sole concentration on credit score.
This makes licensed money lenders a great avenue for individuals with low credit scores.
Terms and Conditions Clearly Stated
You may have had those scary stories with greedy lenders, hidden charges, and astronomical interest rates. However, dealing with licensed money lenders is different. Licensed money lenders operate quite transparently and equitably because they must comply with stringent legal guidelines.
For instance, before you sign your loan acceptance, the licensed moneylender has to explain the interest rates, outline all fees upfront, and provide a contract. This transparency will allow you to make informed decisions and plan repayments without fear of surprise costs.
Flexible Loan Options
Most licensed money lenders have various types of loans to suit your needs. There is something for every situation, be it a personal loan, a short-term loan, or a business loan. Some even offer customized repayment plans to help one better their financial situation.
How to Identify the Best Licensed Moneylender
Since you still have to do due diligence in selecting the right licensed money lender, the following are a few tips on going about it.
- Check Their License: First and foremost, the lending company is supposed to be registered and licensed with the relevant financial authority.
- Read Reviews: Look for customer reviews and testimonials about them.
- Know the Terms: Read through the loan agreement and learn the terms, interest rate, and fees involved.
- Compare: Never be content with one lender. Instead, compare all rates and terms available with various moneylenders to get the best deal.
Conclusion
Since financial emergencies befall many people, a licensed moneylender should be able to offer you the needed quick, reliable support.
Lastly, you need to do your due diligence and select the best licensed moneylenders to borrow from.