Importance of getting loan from licensed money lenders


Loan is not something which people take happily, especially those people who are already in tight financial condition but some situation make people to apply for loan no matter how they thong about it. People apply for loan in case of emergencies or when they do not have enough savings to pull them through the situations. There are two types of money lending companies, which are giving loan now, days, licensed and unlicensed companies. Licensed money lending companies are forced to follow the rules and regulations set by the government to save the borrower from any fraud or cheating. On the other hand, unlicensed moneylender is not obliged to any such thing and they can do what they want. It is important to get loan from licensed money lenders in sg and if a person is mot doing so, he is committing a very serious crime.

Licensed money lenders can have higher interest rate or many requirements to approve the loan that is why some people think that it is better to get loan from unlicensed lenders. Thing they do not know is that they are putting themselves and their families in jeopardy but being in debt of people who are committing crime. People who are already doing illegal things what thing can stop them to doing so again. These people will never stop at anything to get their money back. They can harm the borrower physically too and he will not be able to do any think about them. Getting loan illegally will stop them from turning towards police to get help. Some unlicensed moneylenders will ask the borrower to sign a blank paper, which is not a good idea because he can use the paper in any illegal activity. They will also ask the keep the ATM card of the borrower for lower interest rate and that is also a very bad idea. The lender can use it to hack the account of the borrower. He will force the borrower to take the loan as soon as possible. these people will not ask for any legal documents of the borrower because they want to trap them in a bad situation and not asking for paper is just the act to make the borrower feel relaxed and get his trust so that they can use that trust to destroy the borrower badly when the time comes

Licensed moneylenders on the other hand are people who are required to do anything possible to make the borrower understand each and every small detail of the contract. They will ask for the proof of borrower’s identity and other required document. They cannot do any kind of fraud with the borrower and if someone does that, the law will punish him. He will have to pay the penalty or face the jail. These people will not ask for a signed blank paper or ATM card of the borrower. These people cannot force the borrower to take the decision faster and they are forced to answer every question borrower has about the loan and contract.

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