If you are facing some financial problems and you are not strong enough financially then you would definitely want to take out a loan. But you should not get the loan without any proper plan. People who are financially strong and they want to lend some money to invest in their business can easily take out a loan from any licensed money lender or from a bank. But those who are not strong financially or who have a bad credit history they can’t get the loan easily.
Because of the bad credit or financial problems they might look for fast loans for bad credit with monthly payments and the can only find loan sharks who charge a lot of interest rate. But they failed to realize that getting a loan from loan sharks or getting a hard loan is not a good idea in any case. They should always look for a licensed money lender Singapore to get a loan to make their life easy.
Though it would be difficult; but one should try his/her best to find a licensed money lender instead of a loan shark as there are various advantages of getting the loan from a licensed dealer.
Some of the advantages are listed below:
1- Reasonable Interest Rage:
If you get a loan from loan sharks, they will charge a high rate of interest which will be very difficult to pay off. Whereas the biggest advantage of getting a loan from a licensed money lender is that you will not be charged more than the market rate. Their rate of interest will be predefined and there would not be any hidden charges.
2- No Harassment Involved:
If in any case, you failed to pay your monthly installment, you will not face any harassment from a licensed dealer as they will only adopt the legal ways as per your agreement to get back their money. But if you fall into the hands of a loan shark, they will harass you and give you threats to get their money at any cast. They will use illegal ways and tease you to disturb your personal life because they need their money back at any cost and since they are illegal money lenders, they can’t deal with you via legal court.
3- Crystal Clear Agreement:
When you get a loan from a licensed money lender Singapore, you will know the terms and conditions as the licensed dealer will explain the condition in a language you understand. Whereas an illegal money lender will use special financial terms which you are unaware and after you sign the agreement, he will use that contract to blackmail you.
4- Your Personal Details are Safe:
Since a licensed money lender has to be careful about its reputation so they will never try to get your personal details in an illegal way and they will never misuse the personal data of their clients which they can easily access. On the other hand, a loan shark will use your personal data without your permission and he can pass your data to other people which would be a threat for your reputation as well as for your life.
These are the simple and important benefits of taking the loans from licensed money lenders rather than loan sharks. Though it is difficult to qualify for a personal loan if you are facing financial crisis but it is not impossible. So always try to look for a licensed money lender and don’t go for a loan shark no matter how desperate you are for fast loans.