The most common problems people encounter when dealing with unauthorized moneylenders are unending harassment. There have been numerous cases of harassment involving unknown loan sharks, a horror often depicted in movies, but one that occurs in real life as well. Also check licensed money lender
Regardless of how long the process may take or the meticulous list of requirements a licensed moneylender might ask for, the peace of mind you gain from knowing you are protected by the law is undeniable. Dealing with a licensed company ensures that your safety and the lender’s license are not at risk.
Still not convinced? Here are 10 benefits of borrowing from licensed money lenders and the advantages of dealing with them:
- Steer Clear of Predatory Lenders
Avoid the risks associated with unregistered lenders who often exploit borrowers with excessive interest rates and no formal agreements, putting your financial security at risk.
- Simplified Application Process
Licensed money lenders streamline the application process, requiring minimal documentation and focusing on essential information like identification and income verification.
- Accessible to Low Credit Scores
Money lenders offer loans to individuals with low credit scores, emphasizing stable income over credit history, making loans more accessible.
- Borrow Up to Six Times Your Monthly Income
For unsecured loans, you can borrow up to six times your monthly income, depending on your annual income. This option provides flexibility for borrowers, allowing them to access significant funds without collateral.
- Interest Rates Capped at 4%
Licensed money lenders cannot exceed a 4% interest cap per month, as regulated by the Ministry of Law. This cap applies regardless of the borrower’s income or the loan’s nature. If loans are repaid late, the lender can charge 4% interest for each month of delay.
- Transparent Fee Structure
Licensed money lenders are allowed to impose specific charges as per the Ministry of Law, including a fee not exceeding $60 for late payments, a fee not exceeding 10% of the principal loan when granted, and legal costs ordered by the court for loan recovery.
- Rapid Loan Approval
One significant benefit of borrowing from licensed money lenders is the quick loan approval process. Especially for urgent loans, approval can take less than an hour, reducing the time and stress involved.
- Immediate Access to Funds
Once approved, funds are quickly disbursed, providing you with immediate financial assistance without lengthy delays.
- Tailored Repayment Plans
Repayment terms are flexible and tailored to suit your financial situation, typically ranging from 6 to 12 months for manageable monthly payments.
- Personalized Loan Solutions
Licensed money lenders offer customizable loan packages, adapting terms and conditions to meet your specific financial needs and goals.
Conclusion
While borrowing from banks is always an option, licensed money lenders provide a quicker and safer alternative. A reputable money lender will work with you to find a suitable loan arrangement, provided you are transparent about your financial situation. Ensure you do thorough research and choose a licensed money lender to avoid future complications.
