Importance of borrowing money from a licensed money lender

There are a number of laws that are contemplated by the government in order to protect people from the harmful money lenders in the field. All the money lenders seem to be genuine during the period of borrowing money. But, this is not the case always. There are a number of money lenders who give out a less amount of money and get back huge amounts in the form of interest. That is the major reason why stringent laws are enforced against most moneylenders in the market. These laws, rules and regulation differ between each state and country. There are some countries that have taken off the interest from the money that is borrowed. These are known as interest free loans. Borrowers of money are often harassed brutally by some of the money lenders who do not have a license. They are hurt in a number of ways in order to pay back the high rates of interests that are collected by these dangerous money lenders. This has been made an offence by the government at a lot of places. Collection of an enormous amount of interest is also considered an offence. This is where the role of a reputable licensed money lender in Singapore becomes a major role. They stick to the rules and the regulations and collect only the interest that is allowed by the legislative law.

It is the duty of the borrower to make sure that the money lender is licensed and follows the rules. There are a number of websites that give a list of good licensed money lender Singapore and also has their contact information. There are money lenders who loan the money without even seeing a person face to face.  In such processes, all the procedures are done online like filling out the forms and sending the proofs. Once the contract has been agreed upon and signed by both parties, the money that is borrowed is sent to the borrower’s bank account by the money lender. This process is very fast as the loan is received within hours or a day of requesting for a loan. There are less procedures of cross checking in this type of money lending. Some institutions also offer low interest mortgage loan in Singapore. These loans are given against a property that is owned by the borrower. This property is used to raise fund that is used for a number of other purposes.