Is It Safe To Apply For Loans From Non-Banking Firms?

by QQ Loan Malaysia Money Lender Malaysia

Introduction -

Loans play an important role in our life, especially in specific events. Honestly, a person can't afford high costs from his or her salary. Events like higher education, wedding expenses, house renovation and so on are the main reasons for which people apply for loans. People might have different needs for which they need a bulk amount. 

 

Banks have their criteria and conditions which need to be fulfilled to get the applied loan sanctioned. Sounds tough right? Exactly! This is why initiatives are taken for people and the concept of licensed money lenders has been introduced. Hereby, we will discuss the factors that have significance in loan selection.

 

The Back Story Of The Concept Of The Loan Process -

Loaning money originates from early Babylonian around 4000 B.c. Historic Mesopotamia, which is now part of the Middle East, was inhabited by a wide range of peoples, such as the Mayans, Phoenicians, Nineveh, and Persians. These early humans employed food as payment for obligations until money printing became commonly used.

 

Contrarily, the loan is no more a compulsive but an essential part of urban life. It is a process to fulfil the present need via supply of lump sum money at one time. A popular money lender will have a transparent execution of the loan process for your ease. As mentioned earlier, we shall now discuss the important factors to note and the logic behind them.

 

Factors To Check Before Applying For A Loan -

We need to first understand that not all businesses will have the same terms and conditions for loan disbursement. It is our responsibility to research deeply the market trends and the standard norms of the financial sectors. There is a fine line between banking and non-banking financial services. Still, the checklist works the same for both. Let's not waste time and pounce on these points precisely as follows.

 

1. Rate Of Interest: 

The first and foremost important point to focus on is the interest rate of the service. Although it varies with various other factors, you must calculate the entire pay and hence decide. It is always wise to search for the best money lender or services near you before making any decision. 

 

2. Duration Of Loan:

 

Time is another significant factor to check on. Well, it is obvious that if the period is long then your monthly EMI would be lesser, however, the total payable amount which includes the principal and the interest, is more! Also, make sure you learn about the processing fee or other relatable charges that you may have to pay to get your loan. A licensed money lender will always support you to have a smooth process. 

 

3. The Locking Period: 

Every loan or at least the maximum of them have the option of prepayment. Nowadays, many non-banking sectors offer lucrative options for clients to have a smooth loan process. Well, you should check the norms and try to opt for a loan service that has a shorter lock period. Therefore, in the future, if you have enough funds to repay the amount and get rid of your EMI, you can do so!

 

4. Tax Benefits Available: 

Many of us either overlook or are unaware of this benefit. An ongoing loan can save a person from heavy taxes like Tds and many more. However, no tax benefits are given on loans against property options, to know more, contact the best-licensed money lender near you today!

 

Conclusion -

The loan has both pros and cons and the biggest factor to remember is the proper repayment of loans on time. A few people get themselves into trouble by ignoring the on-time payment. Therefore, make sure you have proper planning of fund investment and returns before applying for a loan from services.

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Created on Aug 18th 2022 01:08. Viewed 237 times.

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