Lending Money From A Licensed Money Lender

A licensed money lender usually concentrate on providing small loans for clients who require a cash or payday loan to tide over a small period of time. There are strict and tight regulations for the licensed money lender to follow to protect the public interest so that the interest rate will not be excessive and the business operation is conducted in a proper manner. As most of the loans are unsecured, the risk of default is high and licensed money lenders are taking a certain level of calculated risk to operate such financial service for the public. It explains why the micro loans interest is usually higher than most banks & financial institution. It is therefore very important for borrowers to understand their financial situation to plan for their cash flow for the repayment of loans.

Nearly all licensed money lenders are able to offer quick approval for the different kinds of loans - cash, payday, personal loan, if you can present the essential papers required by them. This can be because of less levels of approval in the company of the money lender, compared to a bank. The money lenders are usually less particular in relation to your current credit score. If you have a bad credit score and are not able to obtain a cash loan from a Singapore bank, a lender will in all probability help you out.

As a customer or a borrower, you are also entitled to a number of powers if you feel you are being cheated. When you approach a licensed money lender and get your loan, it is important that you check with the contract once again for all terms and rules. You can move the court legally against the money lender against any act of breach of contract. Such cases might be when you find out you have given lesser amount of principle money than you had agreed for or, he has added terms into the contract without your consent.