Majorities of experts in the field of financing, banking, etc. have contrasting perspective regarding these services. Moreover, majorities of customers are turning towards these loan sharks, as may term them, over banking institutions? What may be the reason for selecting private lenders? Is that a better choice? Or, some may question, why would that be a wiser decision? There are several reasons why majorities opt for this over the banks. Moreover, you should also be aware that there are some private lenders who aren’t licensed. The lenders who aren’t licensed restricted with rules and regulations.
Given that said, you might require some help to decide between these options. If you’re in need of financial support to fund a project, invest in a dream home or so, you would require borrowing money. Or, you might require a small amount of cash for an emergency, which you do not have at the moment. Knowing the difference between banks and lenders would help you decide the service you wish to select. Given that, here are some differences between these two services, which you might not be aware of:
• Speed of the service
One of the reasons for considering a legal moneylender is the speed of getting the application approved. Banks and other lending institutions take longer time to process the application. Even if you do not have a good credit score, these lenders are a good option. Especially, when the amount is required within a short period or within a day.
• Smaller loan amounts
Even though you are able to repay the amount on time, they still do not offer the maximum amount to individuals. However, for smaller loan amounts, you could easily get it approved rather than wait for the documentation to process over banks. As a fact, this is another reason for considering it viable over banks.
• Interest rates
On the other hand, some may argue that the interest rates offered by banks are considerably low. However, the fact that individuals could get the loan faster from lenders still weighs the decision. Moreover, licensed moneylender Singapore unlike a private lender is, bound by certain laws governed by authorities. Therefore, this is still an option that individuals consider.
Even though opting for a licensed lender would have been a better option, you should always think twice. Even though the credit and other debt histories aren’t probed in depth, these lenders do examine the information. Based on the aforementioned pointers you’d be able to decide if a lender would be a viable option over banks.