Is it better to Get A Personal Loan from Banks or Licensed Money Lender?
Looking for the best Personal loan lender is tough in Singapore. This is because you have wide range of options like banks and private licensed lenders. We are sure that everyone is looking for money to use them for investing in other projects or for emergencies. This is quite common because people do not like to invest their own money. In this case, you have to keep a tab on the money lending agencies or Banks. Now a question arises that: From where money should be borrowed?
Well, it’s unfortunate to tell you, but we have a couple of options, but only some of them are reliable. One of the major options is Banks which is quite common too. Banks provide loans at a reasonable rate, and higher amounts of money can also be borrowed. On the other hand, licensed money lenders are the second most reliable option.
There might be many misunderstandings regarding which one is the best option for you to borrow money. Here we are to help you out because, in this article, we will take a deeper look at which one is the best option for you to borrow money.
There are several factors which are of significant importance to conclude. Even if a conclusion is drawn, it might not be accepted universally. In this case, these factors are discussed in general, and you can act according to the situation.
A huge sum of money
- There are many needs, and these needs are not similar to other ones. This is because the requirement of money can differ due to the intensity if needed. If a higher digit figure is required, you have to go with a trusted lender.
- Usually, if a higher amount of money is required, many legal procedures are done. In this case, we recommend you to go with Banks. There might be many questions like how to apply for a bank loan etc. This will be all cleared by the bank itself, and the loan will be issued to you.
Urgent need for money
- Sometimes, an urgent need of money can become a huge issue for you. There are several reasons behind it which makes sense at the time. You should know that licensed money lenders issue urgent loans. This is because the legal procedures are quite low, and the allotment of cash is also fast.
- There is no need for you to go with Banks because it will take time to allow you the money. Banks do not entertain urgent need of money.
Years for Repayment
- If you require money for a longer period, Banks are the best option for you. The loans are issued for multiple years, and also the interest rates will be low. There is no issue with licensed money lenders but loans for 10-15 years are tough to allot.
- Banks will check your credit standing before giving you a loan. Now you would be thinking, where to get personal loan with bad credit? It’s easy to get loans with bad credit from licensed money lender but not for a longer period.
If you look at the web, you will find many factors which are considered before making decisions to get a personal loan. These factors are very crucial because getting a loan is a huge deal. You become bound to repay the loan for the allotted years plus interest. In this case, if the decision is taken, you need to decide where you can take a personal loan. There are two major options in front of you which is a Bank or a Licensed Money lender.
You are supposed to know the policies and every procedure of getting a loan from the financial sources. One of the major mistakes which are commonly committed by intending loan seekers is that they do not differentiate. There is a need for you to look at the difference between these two financial Assistance providers and then make a responsible decision.
When you talk about getting a personal loan, there are many legal procedures. These procedures are still less than any other loan in the market right now. This is because a personal loan is for people who want a huge sum of money without waiting periods. This can be done by opting for a Personal loan. There are many differences between taking a loan from a licensed lender and a Bank. First of all, interest rates hugely differ when we compare it in detail.
You should know that a licensed money lender will charge you a huge rate of interest. This is because the rolling method of a licensed money lender is much smaller than a Bank. The occurrence of a Personal loan in a Bank is quite common now. The rate of interest is the huge point of difference between a Bank and a licensed money lender when Personal loan is taken into consideration.
Also, the documentation procedure also varies a lot between a licensed money lender and a bank. As the name suggests a licensed money lender is a legal tender. But, a personal loan does not include major legal documents for allotment of loan. In this case, these lenders tend to allot the loan without considering the required documents. On the other side of the boat, Banks are quite strict about it. As we have mentioned in the above section, the occurrence of a Personal loan is quite normal.
In this case, the documents required ate compulsory. You cannot try to provide void and fake documents. The documents provided should be solid and licit. If fake documents are detected, the application for a personal loan directly gets rejected by the bank. This states that the banks are much stricter when the documentation process is considered.
These are some of the major points of difference between a licensed money lender and Banks when a personal loan is concerned. You should choose according to the need and take the decision after considering the factors which are important. We hope that this article will provide you with the necessary information needed.
We hope that this article will provide you with the necessary information needed.