Everyone reaches a point in life when some extra money is needed. Luckily, there are many different methods out there that you can use to borrow the amount you need. The only question is which option provides you with the most advantages. Should you go to a bank in Singapore? Or maybe check an online loan provided by a licensed money lender?

In this article, you will find all the perks that you can expect from using the services of a licensed lender when compared to a conventional bank. You can use the information here to decide which of the loans that they have to offer are the best fit for your needs. You will also be able to minimize the financial burden of the loans you get through this information.

A Licensed Money Lender in Singapore Won’t Force You to Spend Time Building Your Credit Score

It is well known how time-consuming it is to build up a perfect score, which all banks require. So, instead of waiting for months or years before you get a loan, or if you need money urgently, then the services of a licensed money lender in Singapore may be a better option for you. These companies have much lower score requirements that will increase your chances of getting their loans.

Keep in mind that a lower credit score also means that the lender will need to take higher risks. As a result, the interest rates that you will have to pay are generally higher. Of course, you can also find lenders that have reasonable offers, and the licensed ones will also follow the limitations imposed by the law.

You will need to decide for yourself if you want to build up your credit score, access loans from banks, and focus on minimizing the rates that you will pay or if time is more valuable and you are willing to pay slightly higher rates in exchange.

The Other  Requirements of a Licensed Money Lender Are Also Lower

There are several other requirements that both banks and a licensed money lender will ask from you. For example, you will need to provide proof of revenue, and you must also meet some standards of income depending on the amount you want to borrow. In general, all these financial institutions will ask for documents that will prove that you are trustworthy and will repay the loan.

Similarly to the credit score, a licensed lender also has lower standards for many of these requirements. As a result, you will have a much easier time to quality and getting the loan you need to cover all your financial worries.

Keep in mind that all the information provided through these requirements and documents will affect the interest rate that lenders will offer you. The higher the risks that a bank or a lender has to take will be reflected in the rates. So, you should still strive to offer as much assurance as possible to a licensed lender to ensure that you get the best offer possible.

You Can Get an Online Loan Without Going to The Bank Several Times

Another perk that you can expect from a licensed lender is their online system. Many of these companies have developed websites and mobile apps that will make the process of getting a loan in Singapore much quicker and easier. You can apply for an online loan, and you won’t have to waste time going to the physical location several times.

On the other hand, many banks still ask you to visit them at least three times before you will be able to get the loan, even if you meet all the requirements. Not everyone has the free time to visit during the bank’s program. For many people, the flexibility provided by a licensed lender is precious, can save you extra time, and can help you avoid some issues.

It is important to note that even the licensed lenders must ask you to come and sign the final contract before you get your loan. This is a requirement imposed by the law and can’t be avoided. This also means that if a lender doesn’t ask you to visit for this reason, it may not be licensed, and you should do some research before taking a loan.

It’s Much Faster to Get an Online Loan from a Licensed Lender

Besides the time flexibility that you will get from getting an online loan, you will also save a lot of time. Licensed lenders strive to make the process as convenient and quick as possible. In some cases, your loan may get approved the next day after you send your application.

On the other hand, no bank will approve your loan as quickly as a licensed lender. This advantage is essential for urgent situations where you may need money quickly to solve your financial problems.

As you can see, there are many perks to using the services of a licensed lender. However, there are many options on the market, and it's vital to know how to determine the trustworthy ones and how to find the best offers available.

How to Choose the Best Licensed Lender Based on Your Needs

First, you need to start searching online and find as many options as possible. There are many differences when it comes to requirements, rates, and the advantages they offer. For this reason, you will need to compare them until you find the best option for your needs.

It is essential that you check all the options and ensure that they are licensed by the government before you use their services. You don’t want to get scammed or taken advantage of, and the best way to ensure that is to verify the lender's license beforehand.

For your comparison, it’s essential to know which type of loan fits your requirements. You can find details about the different types of the lenders’ sites. So, you can just go for the one you need and compare all the offers to see which one is the most advantageous for you.