Image result for Moneylending guide from licensed money lenders in Singapore

Money lending is a part of finance, which is usually termed as a loan. Lending money by one or more individuals, organizations, or some other entities comes under the money lending process or loan. The recipient owes a debt to the individual or the organization from where the loan has been taken. The debt is completed by giving some assigned amount of interest, depending on the conditions designed while lending the money. Interest is the extra charge, which has to be paid along with the principal amount in the given period. The interest is the earning for the lender that means extra money will be returned along with the principal amount to the lender in the defined period. There is a contract that is signed by both parties while issuing the loan, which contains information regarding the rate of interest, the principal amount loaned, period, and the interest value.

CRAWFORT Singaporeis the fastest-growing microfinancing company. They are located at one-north bridge road #01-35 high street center Singapore 179094. They are available in your service from 10:30 am to 7:30 pm from Monday to Saturday and closed on Sunday and public holidays. You can reach out to their services through there helpline number or from there website as well.

There are different types of loans discussed below-

  • Secured
  • Unsecured
  • Demand
  • Subsidized
  • concessional

Secured

This type of loan requires some collateral from the borrower as security. Housing loan or the car is a very common type of loan used by many people to purchase some property or vehicle. As the issuing amount is exceeding some limit designed by the organization or the government, collateral is required for security purposes. When the borrower fails to repay the loan in the given amount of time, then the lender can sell the asset to regain the sum of the amount issued as a loan along with the theoretical profit. There are two types of auto loans named direct and indirect. In indirect auto loans, the money is given to the connected company, which acts as a financial institution between the moneylender and the customer. In the direct form of a loan, money is given directly to the customer who is investing the amount to buy a vehicle.

Unsecured

These are the loans that don’t need any collateral from the borrower. Some examples of unsecured loans are credit card debts, personal loans, etc.  The interest is put on while lending the amount for a specific amount of time. The flaw of this type of loan is that the interest rates are generally higher than the secured loans. The interest rates are higher because unsecured loans are more prone to defaulters that are the people who do the fraud or unable to return money due to any possible reason. In this case, the lender can sue the borrower and can retain the money.

Demand

These are defined as short-term goals that don’t have any decided period of lending. But these types of loans have a floating interest rate, which depends on some prime factors. These loans can be called off any time by the money lending institution. These can be secured as well as unsecured also.

Subsidized

These are the loans on which interest rate is zero or if taken then return in the form of subsidy by the organization.

Concessional

These are known as soft loans as they lend money on a lower rate of interest than the current market rate. They can also provide an extended period. In some cases, they offer a lower rate of interest as well as an extended period.

Moneylenders in Singapore

There can be cases where you have the immediate need for extra money, and you don’t have enough savings to help yourself in those situations. In these circumstances, there are various options to borrow money for your requirements, such as official moneylenders in Singapore.

 Moneylenders are one who acts as a lending person and runs a business of money lending. In Singapore, no one is authorized to do this business unless they have the official license to do so.

Identifying the licensed moneylender

Singapore government has made the list of official moneylenders public to the citizens, which you can check on their website. If someone is approving you the loan over a phone call or a text or any social media platform, there are high chances that he is an unofficial moneylender or maybe a fraud.

Official moneylenders may advertise from an internet website along with the full address of their office and phone numbers, advertise through pamphlets, or the hoardings or posters.

illegal practices for licensed moneylenders
The government of Singapore has set some protocols for moneylenders to conduct their business properly.

  • Vulgar, abusive, or harsh language is strictly prohibited.
  • Asking for your details like singpass id or password.
  • Freezing your ATM card or credit card as collateral.
  • Asking for the signature on a blank or incomplete document.
  • Withholding the principal amount of loan due to any reason is prohibited.
  • Refusing to explain terms and conditions while issuing the loan.
  • Stopping you from reading or not showing the minor details of the deal.
  • Dealing through any social media websites is restricted.

“CRAWFORT Singapore” is legalized by the Singapore government, and they support customers to tailor their loans according to the needs of themselves.

Conclusion

Moneylending can be a good option when stuck in a crisis. One should always choose the legal and licensed moneylender to keep themselves financially safe. Choosing CRAWFORT Singapore is a convenient option because they have digitalized everything which is surely useful for their customers. This is a useful service for the borrower and opens scope for the business also. If someone wants to do business and needs money can easily go for borrowing and can start to fulfill their desires. There are some downsides to this business are the defaulters. Proper research must be done before lending the money to an individual or the organization.