Myths of taking loan from licensed moneylender

 

When people need money for emergencies, there are many licensed money lenders who can help them in their bad financial situation. People can get loan very easily and without the risk of any fraud and cheating. People do not take only when they are in some kind of financial trouble but they also apply for loan when they want to purchase something and they do not have the whole amount at hand on the spot. These money lenders are people who earn money by helping other people in the form of interest rate. Some companies have higher interest rate than other but people always prefer those companies which have low interest rate and that’s why these companies get more business. Licensed money lenders in singapore are forced to charge a limited high amount of loan and they cannot charge more than that limit or else government can take a  legal action against them.

People use the loan for different purposes such as to pay their taxes or to pay their credit card bills. Some people pay the installment of the loan by getting an unsecured loan to save them from becoming a defaulter. Loan is not something recommended, because it put a person in debt of other people for a long time and it is important to be considerate about taking a loan and using the money taken as loan.

Sometimes market change urgently and prices of something you have saved money for a long time increase too. You cannot use your saving to cover the increased amount that can disturb your whole budget, which is why many people would turn towards getting a loan in this situation. Some people take loan for business point of view. They take loan to invest in something which they think is profitable and when they get profit they return the loan amount. However, if is not recommended because it is possible that the whole amount of the loan with interest money increase higher than the invested money.

The government of Singapore has made some rules and regulations to protect the borrower from lender such as it is the duty of the lender to make sure that the borrower understands the terms of the loan, if required, he should hire a translator. The lender cannot harass the borrower in case of late payment physically or verbally. They cannot forced the borrower to make the decision sooner of getting the loan. the borrower has a right to take as much time as required to make up his mind. A licensed money lender will never ask the borrower to sign any blank paper https://easycredit.com.sg.

There are many websites available of moneylenders and searching for a licensed moneylender is not as much difficult now days as it was in the past. The borrower in Singapore are obliged to get loan from licensed money lenders and if they are getting loan from unlicensed lender, he will be considered taking part in illegal activities and the authorities can take a legal action against them.

 

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