Introduction

It is an undisputed fact that every individual needs an advance sum of money to meet various needs like meeting medical expenses, weddings, education, etc. Generally, an individual prefers to take a loan from financial institutions like banks, as they tend to be more secure and charge a lower rate of interest. For more information on best money lenders, please click good at moneylender Singapore. But today, there are many licensed money lenders who advance money to people on more favourable terms than banks. This article provides a general overview of when an individual should consider a money lender for loans over conventional banks.

When to Consider Moneylender over Traditional Banks

There are various factors to consider, which indicate to take loans from money lenders rather than banks. These factors are:

• Urgency of Funds: When people think of bank loans, they expect detailed approval practices, as banks require various documents to approve the loan. Moneylenders provide faster loan processing and delivery that makes them perfect when an individual needs immediate money.
• Low credit score: Getting bank loans becomes difficult when you show bad credit marks on your financial record. Licensed moneylenders base lending decisions on your present finances and loan repayment potential instead of past credit issues, which helps many borrowers qualify for loans.
• Smaller Loan Amounts: When seeking a small amount of money, a bank loan application becomes very difficult. Banks prefer giving out substantial loans to follow their profit strategy. Moneylenders provide small emergency loans that help you pay for important yet temporary needs.
• Less documentation: Banks need to see full proof of your financial situation through reports and official records. Moneylenders need basic information from clients rather than complex paperwork. Easier borrowing procedures help customers finish their loan applications quickly when an individual needs funds right away.
• Short-Term Borrowing Needs: If you need funds right away, banks offer fewer choices than moneylenders. Banks provide long-term loans that come with payment plans even though you need cash quickly to meet short-term plans. Moneylenders give small loans that you need to pay back fast, making them a solution for your urgent requirements.
• Repayment structure: Conventional banks usually have a very rigid structure in terms of repayment of loans, etc. Whereas licensed money lenders offer customised loans where there is a flexible repayment structure, etc.

Conclusion

It is important to note that licensed moneylenders are best at offering immediate loans to cater to urgent needs of the individual, as they require less documentation and formalities than conventional banks.