Importance of getting loan from licensed money lenders


Loan is not something which people take happily, especially those people who are already in tight financial condition but some situation make people to apply for loan no matter how they thong about it. People apply for loan in case of emergencies or when they do not have enough savings to pull them through the situations. There are two types of money lending companies, which are giving loan now, days, licensed and unlicensed companies. Licensed money lending companies are forced to follow the rules and regulations set by the government to save the borrower from any fraud or cheating. On the other hand, unlicensed moneylender is not obliged to any such thing and they can do what they want. It is important to get loan from licensed money lender in Singapore and if a person is mot doing so, he is committing a very serious crime.

Licensed money lenders can have higher interest rate or many requirements to approve the loan that is why some people think that it is better to get loan from unlicensed lenders. Thing they do not know is that they are putting themselves and their families in jeopardy but being in debt of people who are committing crime. People who are already doing illegal things what thing can stop them to doing so again. These people will never stop at anything to get their money back. They can harm the borrower physically too and he will not be able to do any think about them. Getting loan illegally will stop them from turning towards police to get help. Some unlicensed moneylenders will ask the borrower to sign a blank paper, which is not a good idea because he can use the paper in any illegal activity. They will also ask the keep the ATM card of the borrower for lower interest rate and that is also a very bad idea. The lender can use it to hack the account of the borrower. He will force the borrower to take the loan as soon as possible. these people will not ask for any legal documents of the borrower because they want to trap them in a bad situation and not asking for paper is just the act to make the borrower feel relaxed and get his trust so that they can use that trust to destroy the borrower badly when the time comes

Licensed moneylenders on the other hand are people who are required to do anything possible to make the borrower understand each and every small detail of the contract. They will ask for the proof of borrower’s identity and other required document. They cannot do any kind of fraud with the borrower and if someone does that, the law will punish him. He will have to pay the penalty or face the jail. These people will not ask for a signed blank paper or ATM card of the borrower. These people cannot force the borrower to take the decision faster and they are forced to answer every question borrower has about the loan and contract.

Three very common kinds of payday loan

Life is very tough. It brings challenges every day. Different people face different types of challenges. However, the biggest challenge is to fight with financial problems. Many people do it every day. Because of the economic fall in all over the world, many people have lost their jobs and monthly incomes and they are forced to work in less income than they deserve. People fight financial fight everyday to fulfill their basic needs but not all of them win those fights. After fulfilling monthly requirements, they cannot safe money for emergencies and when something comes up which require money, people turn towards loans. Applying for loan is also a very hectic job; it takes too much time and energy. People have to wait for many days for authorization of the loan. To help people and to bring some piece in people’s life, some money lending companies are working very hard and they have launched payday loan.

Payday loan is not new. Its origin is United Kingdom and from years, this type of loan is helping those people who need money urgently and do not have any savings. At first, not many people were happy with this loan because it has higher interest rates and lender put his money at great risk. Some people thought that business of payday loan is not very profitable but after some time it get important for those people to except it because it showed its worth. This loan is getting famous in America and other countries too. This type of loan has many benefits. The borrower can get the money in less than 24 hours. There are many companies, which are providing this loan, but is the best of them all. This company transfers the money within 30n minutes of application verification. This is the only company, which is providing different types of personal payday loan at one place and each type if according to the needs of their clients.

1 hour Payday Loan

In this type of loan the borrower gets the money within an hour of applying. However, there are some conditions and only clients who fulfill these conditions can apply for this type of loan. The borrower will have to return the money back on his next payday. The borrower will have to fill the form just like all other application types, the lender will verify the provided information, and if everything is okay, money will be transferred in the borrower’s account. This type of loan is fixed interest rates and it will be charged on every £100.

Low-fee Payday Loan

This type of loan has less fee of application than all other types of loan. If the borrower has a good financial report like good income and a trustworthy job, the lender will approve the bigger amount of the loan than they are giving generally. However, people who have a week’s time on hand to handle the situation can apply for this loan because it takes 5 day for application approval.

Bad credit history loan

This type of loan is for those people who have already taken the loan from other financial company or bank and it has not returned it because of whatever reason. All other type of loan need credit history checked but by applying for this type of loan the borrower get the immunity of not submitting the credit history report.

There are many other types of payday loan and with many other benefits. To get the knowledge of all that please visit the website given above.