Loan It Up: Why Licensed Money Lenders Can Be Better than Banks

As you know, there are a number of ways to get fast cash in Singapore. If you’ve ever applied or taken out a loan, then you’ll be familiar with the most common options: banks and licensed money lenders. The money lenders we’re talking about, of course, are secured, backed by the government and are authorized by the Ministry of Law.

So, what are the differences you should know about when you go to borrow money from a bank or a licensed money lender in Singapore? To make things easy for you, here’s a list of things you should know before borrowing from either!

Loaning Money from Banks in Singapore

Banks are governed by the rules and regulations set by the government which protects the customers. And they follow a certain process to give out loans–this doesn’t change for anyone.

Banks may offer you a large loan amount than the money lenders but they need tangible assets in exchange for loans. When you apply for a loan with a bank, you’ll also need to take into consideration some waiting time. They will need a minimum of two weeks to go through your application, the paperwork, your borrowing history, and your credit history.

Pros

  • You can get a big amount of loan from a bank.
  • Follows a clean and transparent process which is governed by the regulations set by the Singapore government.
  • You can get a loan with low interest from banks in Singapore.

Cons

  • You cannot get quick loans with banks as they take a minimum of 2 weeks to process an application.
  • You have to have a good credit history to be considered for a loan from the banks.
  • You’ll need to wait for weeks for money to arrive in your account.
  • You need to take a loan for at least 12 months.

Now let’s take a look at the money borrowing process of licensed money lenders in Singapore.

Loaning Money from Licensed Money Lenders in Singapore

If you’re stuck in a situation where you need fast cash in Singapore, you should consider loaning from licensed money lenders. This is because of the fast approval process licensed money lenders offer.

With licensed money lenders, you can also get short term loans, unlike banks. You can get a small loan amount from money lenders and if your income is above $20,000 per annum then you loan up to 6 times your monthly salary.

But the best thing about licensed money lenders is that they approve your loan in days and in some cases in a matter of hours. They also don’t look at your credit score as part of the loan approval process. So if your credit score is an area of concern for you, getting a loan from a licensed money lender in Singapore is best.

Pros

  • Get quick cash loans with approval within 24 hours.
  • They don’t consider your credit score, you’ll still be able to get a loan if your credit score is an area of concern.
  • You can save a lot of time with money lenders.
  • You can choose your payment date and time and also how much you can afford per month.

Cons

  • Interest rate is higher than banks.
  • Your loan amount from licensed money lenders may not be as high as banks.

Licensed Money Lenders Singapore

There are times when you just need fast cash in Singapore, and that’s when licensed money lenders can save the day. They also offer flexibility in certain areas such as payment date and repayment rates, which can make a real difference in your loan process!

If you have any questions about getting fast cash in Singapore or are looking for a reliable money lender in Singapore, just leave us a comment below, or contact us at our hotlines: (+65) 62244746 (Yishun) and (+65) 62244749 (Tampines).