After years of being on the fringe, money lending services are now more mainstream than ever. And for a good reason! Moneylenders provide a service that no other financial institution can match: loans with low interest rates and little to no collateral required. If you have been seeking or looking for an alternative to your bank or credit union, a licensed moneylender Singapore may be just what you need. In this blog, you will get to know about Licensed Money Lenders: an Alternative to Other Financial Institutions.
We’ll discuss money lending services in detail below, including their history and how they work better than traditional financial institutions.
History of the Money Lending Services
The history of money lending services can be traced back to the Middle Ages when they gained notoriety for taking advantage of the poor. Moneylenders began popping up shortly after European countries started trading and became wealthy. These early moneylenders took an interest in loans between individuals and would charge enormous amounts of money on top of what was borrowed. This is why it’s important that you do your research before borrowing from a licensed fee-based lender today!
People who are looking for money lending services should be careful about the company they choose to work with. Moneylenders can charge high-interest rates, especially when compared to other financial institutions like banks or credit unions that typically offer lower rates.
What are the Different Financial Institutions?
When it comes to money lending services, a few financial institutions can help you with your borrowing needs. The two most popular types of lenders out there today include banks, moneylenders, and credit unions. Here are the popular financial institutions:
Banks
The first type of financial institution is a bank. These institutions are the most well-known and widely used out there today, but they aren’t cheap when it comes to borrowing money. Banks typically offer loans with high interest rates and require collateral for things like automobiles or homes.
Moneylenders
Since moneylenders have been around for centuries, they’ve perfected the way in which they operate their business. One of the biggest and most ideal benefits of working with a money lender is low interest rates since loans typically require lower collateral than traditional forms of financing like credit cards or mortgages from your bank or credit union.
In order to use the service provided by licensed moneylenders, borrowers will need to provide personal information such as income documents and employment history before getting approved for a loan agreement.
People should be careful as unlicensed moneylenders out there charge higher interest rates and go after those with poor credit. In order to make sure you’re working with a reputable company, it’s important to understand the difference between licensed money lenders and unlicensed fee-based providers. Unlicensed moneylending services are known as loan sharks because they take advantage of borrowers who struggle financially or have bad credit scores.
Credit Unions
The third type of financial institution is called a credit union. Credit unions are usually associated with banks or other large institutions, but they’re different in that they are member-owned instead of shareholder-owned like other companies on the stock market today. They also offer conventional loans with low interest rates and little to no collateral required, which makes them another great option for those looking to take out a loan!
Pawnshops
The last type of financial institution is called a pawnshop. Pawnshops take things like jewellery, electronics and other items in exchange for money. Like banks, they typically require collateral before getting approved to borrow money from them, which makes this an unsuitable option for most people looking to get a loan with low interest rates!
Why Should I Choose Moneylenders?
Moneylenders provide many benefits over traditional financial institutions. First of all, loans from licensed moneylenders only require collateral in some cases, and these loans also come with low-interest rates (if any at all). This makes them ideal if you need short term funding but don’t want to pay back your loan on a monthly basis!
A second benefit is that there’s little risk involved when borrowing due to their lack of collateral requirements. However, this doesn’t mean that money lenders are less competitive. Instead, they will likely offer more flexible terms when it comes to repayment schedules and interest rates, which make them a great option for those who need short term loans!
Additionally, licensed money lenders like QV Credit provide you with the ability to access your loan anywhere in the country through their online platform. Unlike banks or credit unions that require an appointment before getting approved for a loan, borrowers can sign up at their convenience from home! If you’re looking for quick cash without any hassle, then taking out an unsecured personal loan may be just what you need today!
Our Take
There’s no reason why people should settle for high interest rates and strict collateral requirements anymore, especially when there is such an alternative in the form of moneylenders! These moneylenders offer quick cash with flexible repayment terms and no collateral required, which makes them ideal for those looking to get a loan. If you’re looking for a quick loan with low interest rates, then there’s no reason why you shouldn’t give moneylenders another chance!
