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Banks vs. Licensed Money Lender Singapore

money lender singaporeWith financial need on the uptrend, the need for more finance is driving people to look for various sources to provide them money. The first place that people tend to look at are the banks and other established financial institutions. However, if banks are not providing them financial assistance, people go to money lenders to fulfil their financial needs. Licensed money lender Singapore comes to the rescue of borrowers to meet their financial needs immediately. There are various differences between banks and money lenders.

  • Banks provide loans only if the customers have the security to provide for the loan and the interest paid on such loans are more reasonable. Money lenders provide both secured and unsecured loans.
  • Loans from banks are charged a reasonable rate of interest. Money borrowed from money lenders is charged a higher rate of interest. The interests keep accumulating and sometimes pull the borrowers into a debt trap if the interest keeps accumulating. The difference in the rate of interest is the main advantage that banks enjoy over the money lenders.
  • The process of getting the loans is lengthy for banks and it takes a long time to get a loan sanctioned. The process of getting loans through Licensed Money Lender Singapore is much easier and the loan gets sanctioned easily.
  • The services by banks follow a legal procedure and a definite pattern to provide loans. Licensed Money Lender Singapore provides loans by just submitting certain documents and do not require any other formal pattern, in their way of lending money.
  • The application process in banks is a lengthy process. The application process in Licensed Money Lender Singapore is not a lengthy process, but a simple and uncomplicated one.
  • To meet emergency payments, banks do not provide a solution, while Licensed Money Lender Singapore does the needful immediately to their borrowers.