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Tuesday, November 9, 2021

When Do You Need the Services of a Licensed Money Lender in Singapore?

Singapore residents spend approximately S$ 4725 for monthly living. Regardless of whether you are a foreign employee in the country, a permanent resident, or a citizen, you may need emergency cash to meet sudden unforeseen events. 

While bank loans are the safest option, it takes time for loan approval and sanction. A licensed private money lender Singapore can help you through these situations by offering emergency loans. The procedure is hassle-free compared to bank loan application procedures. It is recommended you find a trusted licensed money lender for emergency financial services.

Who are Licensed Money Lenders?

Licensed money lenders or 24-hour money lenders are private money lenders registered under the Singapore Money Lenders Act. Moneylenders covered under this Act are subject to strict government regulations and rules. The most significant benefit of choosing a money lender in Singapore is that they offer immediate loans in as little as 24 hours. It’s critical to check if the money lenders are legitimately registered under the Act for financial safety and security.

Unlicensed money lenders may use demeaning loan recovery methods like threatening and blackmail. However, licensed money lenders use only authorized measures for loan recovery. These money lenders will not take control of your property or belongings without relevant approvals from the government. 

Additionally, the money lenders follow an authorized procedure for loan application and approval procedure. The lenders verify your credit score and other details before sanctioning loans. The loan amount you are allowed to obtain will depend on your income level. 

The government regulates the loan interest rates. Therefore, licensed money lenders in Singapore do not charge unreasonable interest for loans. However, the interest rate for emergency loans may be higher than bank interest rates.

When Should You Approach Licensed Money Lenders

Licensed private money lenders offer both personal loans and business loans. You can approach a licensed money lender in Singapore for different reasons. Also, consider defining and evaluating your loan requirements before opting for the services of a licensed money lender. 

For Emergency Business Loans

Banking institutions may not be able to provide loans in less than 48 hours. The loan sanction procedure is subject to scrutiny and evaluation. You will have to fill out loan applications and follow several other procedures before getting a loan. 

Private licensed money lenders can make loans available in as little as 24-hours. These money lenders also offer online loan application options. You can fill out the online application form; upload relevant ID proofs and proofs of income. The loan may be sanctioned almost immediately if you provide relevant details and information.

Businesses need steady cash inflows to operate, and business emergencies can crop up at any time. Some business emergencies need immediate handling. If you face an emergency related to your business, you may consider choosing the services of a licensed money lender. The services of these licensed money lenders can ensure that your business operations are not obstructed. 

You may have to make a detailed assessment of the emergency financial needs of your business before applying for the loan. The interest rates are usually not higher than 4%. The rate may vary based on bank interest rates and ministry regulations.

For Emergency Personal Loans

You may approach licensed private money lenders for emergency personal loans and wedding loans. Much like business emergencies, personal emergencies may require urgent funding. 

Suppose you need urgent liquid cash to meet a personal medical emergency, settle a personal transaction, or meet expenses related to weddings and other events. In that case, you may contact a trusted licensed money lender immediately.

The moneylender will assess your income level, financial credibility, and other related factors. The amount of loan you are eligible for will be directly proportional to your income level. People with higher annual incomes can apply for bigger loans. People often depend on loans from private licensed money lenders to pay off bank loans.

Loan recovery Procedures Followed by Private Money Lenders

Private money lenders follow legally approved recovery procedures for loan recovery. If you need additional time to repay the loan, you may try negotiating with the licensed money lender. The lenders may even help you find additional ways to arrange funds to pay off the loan. 

Licensed money lenders do not harass borrowers over a loan repayment. The lenders may seize your property and belongings with the ministry’s permission if you are unable to repay the loan.

Final Thought

It’s vital to choose a top-rated money lender for financial services. These private lenders respect the rights of borrowers and do not employ unfair lending tactics. Additionally, these lenders offer different loan options at reasonable interest rates.


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Kiara Dawson
Kiara Dawson comes from an Engineering background, with a specialization in Information Technology. She has a keen interest and expertise in Web Development, Data Analytics, and Research. She trusts in the process of growth through knowledge and hard work.

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