The 5 point checklist towards choosing an honest and legal money lender
Securing a loan is no more a task wherein you have to go through complex bank procedures- with many legal money lender schemes now offering loans against real estate and other forms of collateral. However- this is not as simple as it may appear, for there is still a lot that the borrower must take care of in such a scenario.
As the hard-money market gets crowded, many Money Lender Singapore have also begun to relax their regulations. While there is no shortage of lenders and companies, who give loans against real estate, finding a legal money lender is still a worry for most first-time borrowers. If you too are stuck in the same boat, then here is a simple checklist of the 5 factors that you must keep in mind as you search for a legal money lender to help you out in your tough times.
- License: The first thing that you must ensure that the lender is licensed- the regulations governing these vary with different areas. Generally, lenders are licensed with the Department of Real Estate, or Department of Corporations. This is something that you must ensure, so as to know that any contract that you enter in to with the Licensed Money Lender is valid and binding.
- Professionalism: Any money lender who is professional or has been in the game long enough will tell you immediately if he cannot provide you with a loan. You should check various sources, including the lender’s website, and be aware of what may appear as a misleading advertisement. In addition, under no circumstances should you let the terms of the loan be modified at the last minute. Any of these factors serve as a warning light of unprofessional conduct.
- The Capital: If you are borrowing from a company, try to go in for one that has more than sufficient capital to cover its loans. Private lenders, apart from lending to you, could also be giving long-term loans to many others, generally even more than 7 years. It is essential that you go to a lender that can cover such loans. Asking around is a nice way to get to a lender that you and others trust.
- Specialized Lenders: Any lender who specializes in just a few kinds of loans could be a better option than those who claim they handle every kind of loans for all people. Specialists can provide you with specific and thorough knowledge, which is necessary for choosing the best loan as per your situation.
- Experience: Though this may sound a little too obvious, but you should always go in for a company that comes with a solid reputation based on trust and reliability, and has been around for quite some time. A skilled and legal money lender will be able to craft up a scenario that will be a win-win for both the parties in the loan.
These are some simple yet highly effective factors that you must consider as you go out to get a loan- so that you get what you are looking for as well as pay only the minimum for it as time goes by!
For the list of licensed moneylenders shortlisted by us, visit LoanSingaporeSG!