As you well know, if you have ever applied for or taken out any type of loans such as personal loan or payday loan in Singapore, you have a number of ways in which you can borrow. The bank and the money lender in Singapore are a few of the top options that you can choose from. Not only are they secure, you also know you are fully backed as they are all fully legally authorised by the Ministry of Law (MLAW).
So, what are the differences in going through a bank or a Money Lender Singapore when you are ready to borrow? These are a few things you should know as a borrower, before you decide the one you are going to borrow with prior to deciding on the lending amounts and terms you will find to be the most reasonable for you to keep up with as a borrower who is taking out the loan with these entities.
1. The loan amounts you can get
They are typically going to offer a lower loan amount; you can compare several before you borrow, but will typically find loans are often capped at $1500 to $2000 with most. On the flip side, if you were to go through a bank lender, you are often going to learn they are more willing to lend you more. Just that you need to have tangible assets in exchange for the loans with banks. In fact, a $30K mortgage is something many do apply for with banks, and they often do approve the borrower for these terms. So, you are going to go with a lender if you are after quick cash and need instant cash in hand; on the other hand, if you are after longer term loans, want to take out more when you borrow, and are looking for something a bit more stable as a borrower, then you may choose to go with the bank lender when you are ready to apply for a loan.
When it comes to quick cash, there is no way to beat a money lender Singapore. you are not only going to have the cash loan approved often in a few days (in one day in many cases) but you are also going to have the cash you need in your hand, so that you can spend it right away. On the other side, you are going to deal with the bank. In these cases, you are going to wait; often you will wait a minimum of two weeks for them to go through the application, the paperwork, your credit rating, borrowing history, and so forth. So, you are going to wait it out with a bank, while going through a lender is going to result in the instant cash approval you desire, for instant loans you need in hand as a borrower.
3. Interest you pay
A money lender is going to charge a higher rate. It is a riskier loan, there is more of a chance for default, and they offer you instant cash approval. So, they are going to have to get some form of equity from you, and that is going to come in the form of the interest rate payment you will see. On the other hand, a bank is going to charge a very low rate in interest; but, you also deal with wait periods, restrictions, lending limits, and the fact that it is a loan you are going to be repaying for a much longer period of time.
Here the money lender wins again; often, they do not even require a credit check prior to approval And, if they do, you will find eve as a low credit borrower, you are likely going to be approved, even if it is for a smaller lending limit. With the bank, if you do not have stellar credit and borrowing history, you can say goodbye to being able to borrow any amount of money with these institutions, if you are a borrower who is in need of cash when you live in Singapore.
You have options as a borrower, and you should compare them if you want to borrow cash. For those who are trying to find the best route, between bank and money lender, these are a few things which might guide you in deciding on the one to apply with for your loan.