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5 Benefits of choosing a private moneylender in Singapore for your loans

on Jun 2, 2021

Opting for a private moneylender in Singapore to secure your financial loans as opposed to going to a bank isn’t as unheard of as you might think. There are plenty of licensed moneylenders that you can trust to provide immediate loan services for your financial needs. And there are so many reasons as to why an individual would want to take up a loan from a private moneylender. Here are five benefits of choosing a private moneylender in Singapore:

1. The interest rates are fairly reasonable 

Contrary to popular belief, it is actually illegal for licensed moneylenders to charge extremely high interest fees that are randomly volatile. Legal moneylenders are verified under the Ministry of Law in Singapore and the ministry actually regulates the interest rates. A private moneylender in Singapore can only charge a maximum of 4% monthly interest rate to prevent borrowers from going into debt paying rounds of hefty interest rates that never seem to end.


Additionally, you don’t need to be worried about having few loan providers with low interest rates. With competitive prices in the market available for you to compare online, borrowers have the freedom to compare rates from legal moneylenders on their own terms and benefit from quick approval and flexible repayment contracts.

2. You can be more flexible with your loan terms

Unlike private moneylenders, getting a loan from banks or other financial institutions can be cumbersome due to their rigid guidelines. Licensed moneylenders are much more flexible than a traditional bank when it comes to approval procedures or loan terms. 

 

Some Singaporeans who are on part-time employment might find it hard to get approval for bank loans, especially when they have a low credit rating. But with licensed or private moneylenders, it’s much easier to get approved or have flexible loan terms that suit the financial status of the borrower. For instance, when getting a loan from R2D Credit, there’s no need for them to check credit scores, seek collateral, guarantors, or deposits to provide a loan. At R2D Credit, the loans offered are tailored to suit the needs of everyone irrespective of their status quo. 

 

Loan terms are also assessed properly according to your needs as trustworthy private moneylenders follow a powerful code of ethics. Their main goal is to carefully guide all their clients through the effective terms of the loan and come to a mutual agreement. 

3. Less waiting time! You can get your loan almost immediately

It’s often a common occurrence for bank loans to get approved only after one to two weeks on average due to the stringent evaluation process. There is no leniency in getting funds fast, even when you need the money urgently. This is where private moneylenders can help – often approving cash loans on the same application day as many of them understand the emergency and value the client’s needs.

4.There are hardly any hidden cost

You have to be very careful with what you sign and constantly look through the fine print for hidden costs in bank loans. With a reputable private moneylender, there are hardly any hidden fees. All costs, terms, conditions for repayment procedures should be defined from the beginning. These are the only types of charges that licensed moneylenders can legally impose in Singapore:

  • A maximum of $60 late penalty fee for each month’s late repayment. 
  • Administrative fees that are capped at 10% of the loan’s principal
  • Court-ordered legal fees for legal action to recover a defaulted loan

 

Nonetheless, it’s still a good habit to check through the fine print for any type of agreement contract regardless of whether or not it’s a private loan or secured loan from institutions.

5. Less paperwork and signatures needed

A typical private moneylender in Singapore does not need pages of documentation before issuing a loan to you. This takes a lot of time and it’s a hassle especially when you’re in urgent need of financial assistance. Private moneylenders offer specific types of loans according to your eligibility and what assets you need.

Interested in securing a loan? Find out more about legal loan options with R2D Credit Pte Ltd here.