JeffLee Credit Pte Ltd

Best Singapore Licensed Money Lender in Jurong East

Borrowers can take loans from banks, financial institutions, or online lenders. Notably, licensed money lenders offer unique features that make them stand out as one of the most assured ways to access quick funds. 

Therefore, in this article, we’ll discuss why borrowing from a licensed money lender is better than other institutions.

Who is a Licensed Money Lender?

Upon meeting the governing legal requirements as stipulated in the Moneylending Act, these financial institutions conduct their loan businesses within set regulatory standards. Usually, most countries, including  Singapore, regulate the lenders through regulating bodies to ensure they adopt fair means of lending money. These include reasonable interest rates and using less cruel means during debt collection. 

If you go with a licensed money lender, then you are guaranteed protection under the law, as these lenders are kept responsible by the governing authorities.

This distinguishes them from unlicensed or “loan shark” operators who invariably use predatory practices and high-interest schemes. 

Why Choose a Licensed Money Lender Over Banks?

Accessibility

One of the most significant reasons an individual would want to consider a licensed moneylender over a bank is accessibility. Banks involve high requirements and longer approval processes that act as roadblocks toward urgent needs and questionable credit histories. On the other hand, licensed moneylenders require far less inhibitive so that more borrowers can qualify for loans.

Fast Loan processing

Another great thing about licensed money lenders is that they process applications quickly. Most of them have their loan approvals down to just a few hours or even a day, which may grant one access to cash quicker than it would have been possible through traditional banks. 

Therefore, during times of financial crisis, you can access loans quickly to meet your monetary needs. 

Loan Packages Tailored to Your Needs

Most licensed money lenders have loan packages that can be modified to suit the needs of borrowers. Several licensed money lenders are suitable for all financial needs, from personal loans to business loans and even payday advances. The flexibility is valuable and helpful to those who need access to or from other institutions. Licensed money lenders tend to have flexible repayment terms, where one works within their financial means.

This would be most helpful for borrowers needing securements that fall comfortably within their household budget. Most often, licensed moneylenders are amenable to negotiating the terms of an agreement with the client to arrive at a mutual benefit.

Transparent and Regulated Interest Rates

Another good thing about borrowing from a licensed moneylender is the transparency aspect. The law dictates that the licensed lender should, in advance, present all the terms of the loan, showing the rate of interest to be charged and any applicable fees. Such transparency will enable the borrower to know what it takes and what commitments are expected about their loan.

This saves the borrowers from the debt traps created by the significantly high interest rates levied by licensed money lenders. For example, most regulatory authorities place tight limits on the interest rates of licensed money lenders, thus giving the borrowers peace of mind, knowing full well that their loan will remain manageable for repayment. 

Protection against Unethical Lending Practices

One of the significant risks with unlicensed lenders is a total lack of consumer protection. Unlicensed lenders may use unfair methods of recovering their money, harassment, illegal recovery methods, and very high interest rates. Such risk factors are avoided by choosing a licensed moneylender. 

With licensed money lenders, there is strict regulation for the fair treatment of the borrowers and an avenue for referral in disputes. They follow a legal protocol regarding debt collection. And one does have avenues to report such unfair treatment to the regulatory authorities. Therefore, protection and respect for the dignity of the borrowers are ensured throughout the borrowing process.

Ease of Access to Creditors, even to People with Lower Ratings of Credit Score

It is hard for borrowers with low or non-traditional credit scores to get approval from the bank. Licensed money lenders understand that financial struggles are every day, and thus, they provide more options to people with lower credit scores. 

They, therefore, allow those who might get denied by the bank to have the chance for a loan. This friendly approach to operation makes a licensed money lender a perfect avenue for these people to improve their financial standing and build a good repayment history.

Final Words

The above are enough reasons to opt for a licensed money lender over unlicensed or other financial institutions like banks. 

A licensed moneylender is responsible for borrowing money from anyone looking for funding. The lenders are legally bound to protect the borrower and use ethical practices in all their business dealings. They help people meet their financial needs without risking falling into the hands of unlicensed lenders