Are you looking to get a personal loan? Well, we know you could be confused on where to run to, but we’re here to guide you.
There are various options that you can explore depending on your needs and qualifications. However, banks and licensed money lenders are the most recommended lending institutions if you want to get a personal loan or any other loan that is free from scandals.
Banking business is purely distinct from Money lending business. In Money lending business, one usually advances his own money.
On the other hand, banks accept deposits from the public which you can withdraw by cheque. The deposits collected are accumulated and then lent to customers looking for credit. In other words, banks use public money to lend while licensed money lenders use their own money to advance to customers.
Further, the bank pays interest to its depositors which they’ve already earned from the money lent. On the other hand moneylenders do not receive deposits and if they do, they are not under any obligation to pay interest.
How Long Does It Take To Get a Personal Loan in Singapore?
Now that we’ve understood the difference between banks and licensed money lenders, let us now understand their turnaround time when you want to get a personal loan.
Loan approvals for personal loans applications vary from one lending institution to the other. It may take a few minutes to weeks or months. So, it’s always good to ask for the turnaround time before settling on a lender.
Licensed Moneylenders
A personal loan from a licensed moneylender in Singapore typically gets approved within minutes or hours. Most of these lenders have shorter approval time because they rely mostly on technology. You don’t have to visit the lender physically to get your loan approved.
Also, in most cases, their forms are filled online and in such cases you only take a few minutes to complete an online loan application and get your loan approved.
So, if you are looking for somewhere to get a personal loan, the licensed moneylenders are a better option.
Infact, you need not more than 10 minutes to get a personal loan approval with Oasis Credit. There is no need to wait for ages to have your loan approved and have money credited into your account.
One your loan is approved, you head direct to the lender’s office for face-to-face verification and collection of funds
Banks
The typical turnaround time for banks is a few business days or some weeks. The longer approval period is due to their more stringent credit assessment process. In addition, banks have a longer loan review process as they do thorough appraisal.
The typical funding time depends on the length of the approval process. Different banks have different credit review processes.
Factors affecting Overall Turnaround time
Source of income – Lenders will verify your income. So this all depends on the time the verification process will take.
Credit Score – Lenders will check your credit score. A good credit score makes the process easy but a bad credit score drags the process.
Preparedness – The overall turnaround time is also dependent on how well prepared you are. The more information you have the faster the loan application process.
Final Thought
In a nutshell, the total turnaround time for licensed money lenders is much shorter as compared to banks. The typical turnaround time for licensed money lenders is one or a few days due to less stringent terms and use of technology.