Applying for a loan is always stressful. The most difficult part is to find a reliable legal money lender. The money lenders will help you out in the critical financial situation. Most importantly, it should be a licensed money lender. What is a licensed money lender? The 24 hour lender has legal permission from the ministry of law to lend money. These money lenders have appropriate documents and a physical working place. It becomes easier for the customers to function and take up the loan.
In a very crowded city like Singapore, it can be tough to find a reliable moneylender. Well, this is the right place to have reached. Taking off a loan from a loan shark can take a heavy toll on your pocket. As these loan sharks are not licensed or approved by the authorities. They run a scam in order to fool people. Alongside, do not follow the principles that are passed by the authorities. On the contrary, a licensed moneylender will stick to the principles.
For naive people, it can be tough to make a difference. It is absolutely difficult to differentiate between the licensed money lender and the loan shark. While applying for the loan, the licensed loan sharks tend to behave like the licensed money lenders. There is a whole lot of difference between the licensed money order and the loan shark. In this article, we discuss the differences between licensed money lenders and a loan shark.
How to differentiate between the licensed money lender and loan shark?
Here we are going to point out some differences between the licensed money lender and the loan shark. This will definitely provide you with assistance to find the right moneylender. Moreover, you can identify loan sharks by knowing these differences. This is the easiest way to protect your cell from scams and frauds of loan sharks.
Terms and conditions of the loan contract
This is a great way to differentiate as both the money lenders can make a difference. There are certain terms and conditions that must be followed. The licenced money lenders will provide you with a contract. There are the terms and conditions that must be followed as per the ministry of the law. The money lenders must make the contract while giving the loan.
These are the terms and conditions that must be followed. On the contrary, the loan sharks do not follow the instructions that are given by the ministry. The contract consists of all details and specifications about the terms and conditions. On the other hand, the loan shark will not provide you with documents related to the loan.
The licensed money lender will provide you with documents and assurance. This really differentiates the licensed money lender and a loan shark. Always differentiate between the loan shark and a licensed money lender. Always double check if the moneylender is making a contract or not.
The physical address of the money lender
Check out the physical address of the money lenders. As the lifers, money orders have their own space to provide the loan. The physical money lenders have their own working space. These things are very important to consider. The physical address of the moneylender is very important to know.
On the contrary, the loan sharks do not have their own working space. The sharks do not have their own office space. They do not have a physical address. The loan sharks tend to run a scam and fraud. They are not permanently recited anywhere. The physical address of the money lenders is very important. While opting for the loan, always check if the moneylender has the physical address.
Principal rate of interest
The principal rate of interest must be only 4%. Only 4% of the interest rate must be charged from the customers. The licensed money lender always steps to the principle. They will only charge the interest rate and will not exceed 4%. On the other hand, the loan sharks do not have a definite percentage of interest rate. The licenced money lender will give low interest personal loan Singapore.
They charge differently from different people. This is a great tip to differentiate between a licensed money lender and a loan shark. Always check their rates of interest. The licensed money lender has a definite rate of interest of 4%. On the contrary, the following shall not have any definite percentage. This rate of interest must not exceed 4%.
Quick disbursement of the loans
The licensed money lender will disburse the loan really quickly. It will not take a long period of time, or over you can get the loan in just eight minutes. They will be approved in 8 minutes. You can apply it online as well. The loan sharks take a long period of time to approve the loan. They are not very fast and quick in providing the loan. While taking up alone, always check the disbursement time period of the loan. The loan will be dispersed quickly. The loan sharks do not provide the same to the client. Comparatively, the licence moneylenders function quickly for the clients.
The loan shark takes a heavy toll on your pocket. As the licensed money lenders will not charge a very heavy amount for the administrative fee. On the contrary, the licensed money lender will just ask for $10. This is the principal administrative fee. As per the laws and registration, the licensed money lender is only obliged to ask $10 from the clients.
The illegal money lenders of the loan sharks do not follow such principles. They will take a heavy toll on your pocket. Moreover, over the licence, the licence money lender will only ask for the administrative fee after the disbursement of the loan. These are the things you can differentiate between a licence money lender and a loan shark.
Above, we have mentioned adequate points to differentiate between the licensed money lender and a loan shark. These things will definitely provide you with accurate information about the licensed money lender. We hope this article will help you out with the purpose.