What is money lender?

Posted by loantodaysg on December 18th, 2015

What do you do when you are lack of money and desperately need to take some quick credit but can’t do so because of your bank’s meticulous bureaucracy? There’s no need to start mortgaging assets and selling things to pawn shops. Find a lender, you never need to worry about making a financial mockery out of yourself in the midst of a minor cash crisis.

A money lender is a person or group who typically offers small personal loans at high rates of interest. The high interest rates charged by them is justified in many cases by the risk involved. They play an active role in lending to people with less access to banking activities, such as the unbanked or underbanked or in situations where borrowers do not have good credit history. They sometimes lend to people like gamblers and compulsive shoppers who often get into debt.

Singapore has laws in place that requires money lender to be registered and limits on the interest rates that may be charged. For example in India licensed money lenders are governed by Money Lenders Acts of respective states.

Compared to others, registered private money lenders are stable. Anyone who you trust with your financial future and your personal information needs to be proven stable. In order to obtain a proper license, a money lender has to fill out all the documents government required. They also have to demonstrate good character. The lender in question will need to prove that they don’t have any sort of criminal record. A proper license is your guarantee which shows that a lender meets all the requirements that they should follow in law.

Before you borrow money from a money lender, make sure to check out whether it is properly licensed or not. In fact, proving the existence of a proper Singapore lending license is quite easy. All licensed money lenders will appear on a list which is called Lender Registry. If the lender you are considering doesn’t in that list, then keep looking.

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Joined: December 18th, 2015
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