Loansharks have been a part of the Singapore lending industry for a long time. However, there are certainly well known disadvantages to working with them on a personal loan or emergency loan as compared to the services of a properly licensed moneylender. While loansharks may be able to get around certain rules and regulations given the nature of their business, the legitimate industry of money lending has far more to offer.
However, if you are facing a choice between moneylenders and loansharks, it is important to understand just what each one is and what type of services that they offer for your business.
Who are Loansharks?
A loanshark is a colloquial term for a lender who does not operate in the open light of day under the official rules and regulations. Instead, they usually are comprised of lenders with supplies of money that may or may not come from legitimate sources. While not all loansharks are connected to criminal organizations, many of them are and it is practically impossible to get outside verification of where their money comes from.
However, despite the disadvantages, a typical loanshark will have great flexibility when it comes to the size of the loan that can be offered as well as the terms and conditions under which it can be made. Even today, many people in Singapore feel that a loanshark may be their only alternative when it comes to getting the loan they need.
Who are Licensed Moneylenders?
A licensed moneylender is one who follows all the rules and regulations as set out under Singapore law and is registered and licensed under the Singapore Moneylenders Act. A moneylender can also offer a great variety of loans, including the emergency loan or personal loan when a precise amount of money is needed to address certain financial situations.
Whether you need to have your car repaired, pay an unexpected medical expense or have a higher than expected utility bill, there is a moneylender who can work with you to get the right type of loan for your needs.
The Advantages of Moneylenders
When it comes to comparing the services of loansharks to moneylenders, the advantages that recognized moneylenders hold are considerable.
Set Rates: Because moneylenders much comply with the law, the interest rates and contract they offer are set which means you can trust what is on the lending agreement. Compare this to a loanshark who is not bound by any legal authority to change their rates or conditions of the loan whenever they so desire.
Guaranteed Lending: While certain people may not qualify for certain types of loans, the moneylender will honor what they can provide to those who qualify for their services. Once again, a loanshark is under no such obligation as they can provide all, some or none of what they promise with no consequences to their actions.
All things considered, if you are in need of a personal loan or emergency loan, then using the services of a licensed, Singapore moneylender offers many advantages over going to a loanshark. Even if you have bad credit, a moneylender may be able to help.
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