A legal money lender singapore is a certified individual, group of individuals, or an organization that provides loans to individuals. Normally, this sort of business involves high risks and because of this they charge high interests to the folks whom they give the money to. Please notice that services provided by legal money lenders aren’t connected or affiliated in any manner with banks and other financial institutions mandated to provide such loans.
This sort of service is offered to individuals with completely or less no access to banking services especially those in remote areas. Majority of people who borrow money from legal money lenders do not have good credit histories like extravagant shoppers and people involved in gaming activities.
Lots of people nowadays are turning away from banks to legal money lenders mainly due to the ease of finding the money. Also there are no rigorous procedures involved with the authorized money lenders in contrast to banks and other financial institutions where an individual has to go through a lengthy process before he or she’s finally granted the loan. Also banks require someone to deposit a certain sum of money to the lender monthly failure to which your account is deactivated. Legal money lenders do not have such conditions and therefore a priority to a lot of people.
Nowadays businesses and groups of individuals are coming up daily claiming to give money to people at very low interests in comparison to other cash lending organizations. Majority of these organizations are corrupt and wind up charging individuals overdue interests as people do not take the time to read and analyze their terms and conditions of service. In severe cases these businesses wind up auctioning properties along with other factors belonging to the individual they give money to.
As a result of such problems many countries including India and Singapore developed a law that needs all lawful money lenders to be registered by a specific body within the government thus protecting corrupt money lenders. This body has rules that govern the legal money lenders and also sets limit on pursuits charged to individuals.