Loans in Singapore

Even though Singapore is one of the wealthiest countries in the world, people there, as in other, poorer, countries around the world, many people need to borrow money from time to time. In Singapore however, they do seem to be more comfortable with the fact that people requiring loans is inevitable and so they offer some assistance to those that need to seek a loan. That assistance comes in the form of the website where all Singapore’s licensed money lenders are listed. Not only does the list provide people with whom and where they may get a loan, it also allows them to ensure that they do not accidentally go to an un-licensed money lender which could be detrimental to their financial futures. Usually of course, when someone is looking for a loan, they will go to a bank but sometimes circumstances make a loan from a bank unacceptable. An instance of this would be if someone had an urgent need for some money, they needed it the same day or perhaps by the next day. Although a bank is usually reputable and thorough, it is that reputation and thoroughness which cause them to take time in approving and processing a loan. The result is that a loan from a bank will usually take several days to approve and process, meaning you will not receive any money on the same day as you make the request and it is very unlikely that you will even get it the next day. This means that if you are in a hurry for the cash, you must look elsewhere; to a money lender. There are two types of money lender though, the type listed on the Singapore website, licensed money lenders and then there are those not listed; un-licensed money landers. In order to be licensed, a licensed money lender must adhere to certain regulations including the length of repayment plans and the rate of interest they can charge on a loan. This means that a licensed money lender, although still charging a higher interest rate than a bank, does only charge a reasonable interest rate and the good thing about them is that they will usually approve and process a loan request in the same day as it is requested, giving the borrower cash in hand on the day they actually need it. Being an un-licensed money lender obviously means that they do not have a license to worry about and so are often free to charge whatever interest rate they choose and it is usually one which is very high, far higher than the interest rate a licensed lender would charge and of course way higher than a bank would charge. Unfortunately there are times when these types of “Loan Shark” are needed such as if a potential borrower has an urgent need but does not even meet the criteria required by a licensed lender, let alone a bank. These unfortunate people are destined to have to pay an extortionate rate of interest for a loan they need.