Difference between licensed and loan sharks

licensed moneylender

It is important to have a clear idea what kind of lending company you will choose to apply for the loan application. Do you want a licensed moneylender? Since most and even all lenders look so professional, you must be able to know what makes licensed lender look different from the loan sharks, or you will get nothing after spending the amounts for your down payment. Keep in mind that a licensed lender is a recognised one in Singapore by the Registry of Moneylenders. Both of licensed lenders and loan sharks seem to help you find the best financial solution, they are actually different. Below are the things that will lead you to come only to a lender who has years of experience with a license.

– The loan process

Some people make the mistake by turning to loan sharks when they can’t get a loan from legal lending institutions or banks. Of course, they have varies reasons, from credit score to the amount they need. Unlike loan sharks, licensed loan lenders use the system that allows them checking the credit history of the borrowers. Perhaps, this is why every loan lender takes a time to deal with your approval.

– The interest rate

Even though the fast approval process seems so beneficial for you, the interest rate is crucial to consider. Does the loan sharks offer their services by giving you a written contract? Believe it or not, the rate of interest will burden you during your repayment cycle, even more, if you don’t get everything put on a contract. Most of the licensed lenders will protect your interest through the written contract, so the rates and loan amount will clearly get stated.

– Legal vs. illegal harassment

When it comes to thinking about the harassment, we are sure that you will consider licensed money lenders and avoid to having any deal with the sharks one. You will get written the contract, so both of you and the lender will act based on the legal or law in Singapore.