Licensed money lenders are financial institutions that provide loans to borrowers in exchange for collateral. They are required to be fully compliant with the local and national rules and regulations. In order to get licensed, they must pass background checks and have a clear business plan that meets the requirements of the regulatory body. In addition, they must maintain transparent and fair lending practices. This includes clear and comprehensible loan terms, disclosure of all fees, and adherence to consumer protection laws.
If you are in need of extra cash, it is best to seek the services of a licensed money lender instead of loan sharks who can end up costing you more in the long run. Aside from being fully regulated by the government, Singapore licensed money lenders also offer a wide variety of products and services to their clients. These include renovation loans, personal loans, debt consolidation loans, and business loans. If you’re not sure which one to choose, it’s best to do your research first to find out which lender offers the product and service that will suit your needs.
It’s no secret that it can be difficult to raise funds for your start-up. However, with the advent of licensed money lenders, it’s now possible to get quick loan approval without having to worry about credit scores and other criteria. Licensed money lenders also have flexible repayment terms and competitive interest rates. This means that you can finally start that dream business that you’ve always wanted.
What are some of the interesting facts about licensed money lenders?
Unlike other financial institutions that may reject your application immediately after a bad borrowing history, licensed moneylenders are less strict in their assessment of borrowers. They often take into account other factors such as your income and purpose of the loan. This allows more borrowers to qualify for the loan as they will have a better chance of meeting the minimum aggregate loan cap.
Many people are hesitant to apply for loans from licensed moneylenders because they fear hidden charges and high-interest rates. However, these moneylenders are actually quite transparent with their clients, and they will make the entire process smoother for you. They will usually provide a contract that specifies all the necessary information including the loan amount, documents needed, loan duration, interest per month, and other relevant details.
How to become a licensed money lender?
Becoming a licensed money lender requires extensive research and education. Typically, you need to have a bachelor’s degree in either business or accounting. Moreover, you need to have extensive knowledge of finance and business operations to be successful in this industry. However, you can also choose to work as an employee of a licensed moneylender before becoming a licensee yourself.
The main reason why you should consider applying for a loan from a licensed moneylender is that they are registered with a government agency and have to abide by the regulations set by that agency. They should also display their license prominently in their office for everyone to see. In addition, they must meet the minimum capital requirement for licensed moneylenders, which is usually $100,000.