Getting a loan has become a habit of the present generation. With expenses escalating, the cost of living has shot up. Meeting ones financial needs has become a burden. All that a person earns is just spent and there is nothing stored for a rainy day. When loans are applied for, people go to banks or to other money lenders to get loans. Licensed money lenders Singapore provide loans to all those who require loans.
- Loans are applied for to meet emergency expenses. They are medical expenses, marriage expenses, travel expenses, etc.
- Loans are used to pay for repair of buildings and property. As these are essential expenses, people tend to resort to loans, to make the required repairs.
- Business needs are met through loans. Loans are made to purchase machinery, plants and to meet other expenses.
- Small and medium businesses require additional capital to meet business needs and for repair of machine parts.
Banks are the first point of preference to approach for loans. But they do not provide loans without security or collateral. The process involved is more cumbersome. In such situations, to meet immediate financial needs and to get money through unsecured means, Licensed Money Lender Singapore is one of the sources to provide financial assistance to meet financial needs. In such cases, people tend to apply to banks if they have good collateral and if they have a good credit score. But if the credit score is bad and they do not have collateral to provide for their loan, they go to Licensed Money Lender Singapore for loan. Banks give preference to these features when lending loans and they charge a lower rate of interest. Money lenders provide loans at a higher rate of interest for providing the loan as they face a risk of not being paid back by the borrower.