The money lending industry has seen a significant increase in demand for personal loans over the past few years. This is due to an increased number of people with poor credit opting to borrow money from a licensed moneylender rather than banks or other financial institutions.
Licensed money lenders are innovators who have found new ways to offer small loans at competitive rates, and they are quickly becoming more popular among consumers.
Read this article for more information on how these types of companies operate, as well as reasons why you should choose them if you need a personal loan!
The History of The Money Lending Industry
The money lending industry has been around for centuries, and moneylenders have played an important role in the lives of consumers throughout history.
In ancient times, money lenders would provide loans to people who had no access to banking systems or other financial institutions. They were seen as a means of allowing low credit borrowers to buy food and pay their bills when they needed it most. It was not until much later that moneylenders became viewed negatively by society because they charged excessively high interest rates on these types of small loans. This can often lead them into debt traps where money is used simply for paying off accumulated interests rather than making purchases with it.
How do Moneylenders Operate?
Moneylenders work in a similar way to banks, but they offer more flexibility in terms of loan repayment options. Their money lending practices focus on providing quick loans at low interest rates for borrowers who other financial institutions have turned down because their credit history is not up to standard.
By working with money lenders, you can be eligible for small personal loans that would otherwise require an extensive approval process or large deposits from your bank account if it has poor credit ratings. Loans are typically secured against the borrower’s property and charged with a fixed monthly payment over a set period of time before being fully repaid – meaning there is no need to worry about accumulating interests along the way! In addition, these types of companies also allow customers to repay money early without facing any fees so
When it comes to moneylenders, they generally fall into two categories: licensed money lenders and unlicensed money lenders.
Licensed Money Lenders
Licensed money lenders are financial institutions that have been authorized by the Monetary Authority of Singapore (MAS) – a government body responsible for regulating monetary policies in Singapore – to provide credit services such as loans. They must also adhere to certain standards established by MAS, which include not charging any interest rates on their loans or requiring borrowers to pay excessive fees when repaying them.
Unlicensed Money Lenders
Unlicensed moneylenders usually consist of individuals who lend money out of their own homes but do not possess licenses from MAS. Most often, these types of people will ask borrowers for extra charges above what is allowed under law if they fail to repay the loan on time, and they may also charge excessively high interest rates.
Why Should we Choose Moneylenders over Banks?
An important consideration when borrowing money from moneylenders is to understand who you are dealing with – which usually depends on whether or not MAS has authorized the moneylender to provide credit services such as loans. This ensures that your money will be lent out according to certain standards set up by an independent government body rather than just being given away freely based on the whim of whoever happens to have it in hand at any particular moment in time.
Licensed money lenders generally offer personal loans for borrowers seeking smaller amounts of money around $1000-$2000 dollars with terms ranging between 12-24 months depending upon their financial circumstances. Borrowers can also take advantage of moneylender refinancing plans that allow them to repay their loans early without any extra fees or interest charges, which provides an opportunity for borrowers to save money on the total amount they owe.
What Loans do they Offer?
If you are currently in need of money, licensed money lenders can offer you a wide range of financial assistance options. These include loans for home renovations and repairs, car purchases, or refinance plans that allow borrowers to pay back money early without any extra charges – which is an opportunity many people fail to take advantage of! Licensed moneylenders also provide the flexibility needed by some borrowers who may not have good credit ratings due to past spending habits but can still make regular monthly repayments on their loans.
Licensed money lenders work with customers all over the country, offering personal finance services, including business loans, student loans, rental deposits, and insurance products. By working with them, you will be able to find out more about your borrowing needs through free consultations before applying for a money loan.