1. They only offer secured loans
Far from it, as you can apply for and get approved for personal loans, business loans, payday loans, home loans, and other types of loans from Singaporean licensed money lenders. These varied types of loans also get approved very fast and are easily accessible to borrowers.
2. They are expensive
Again, not true. Sure, when you compare the interest rates offered by banks to those offered by licensed money lenders, you’ll find a big difference. However, you should factor in situations like the levels of risks that money lenders take by offering you quick loans.
As much as the money lending business makes profits, they also incur significant losses from defaulters. Thus, the reason for the high-interest rates. There’s no logic in lending money to borrowers only to end up with your principally invested amount or lower. Thus, the slightly higher interest rates.
3. Most are loan sharks
The money lending business is governed by strict rules and regulations imposed by the Singaporean government. You would, therefore, be hard-pressed to find a licensed moneylender in Singapore operating outside of these rules.
Most money lenders strive to provide their customers with a quick and straightforward loan application process.
4. Only financially weak people borrow from money lenders
This is far from true. Just because someone borrows from a moneylender doesn’t make him/her financially weak. Even financially stable people borrow from licensed money lenders for the fast turnaround and convenience that they offer.
Note that applying for a loan from a moneylender won’t get you deeper in debt.
Don’t let the lack of communication cause you to miss out on a loan application opportunity. Stay informed and enjoy the benefits of loans from licensed moneylenders in Singapore.