Finding a loan when you need one is not always as easy as you thought it may have been. Although we may all think that the bank is always there to give us a loan if we need one, unfortunately although we can always apply for one, we may not always get one. The banks and that is all the banks, have their own criteria which you must meet before they will qualify you to receive a loan from them. Although the criteria may seem reasonable, not all of us may meet all that is needed and so will not qualify to be loaned anything or at least perhaps not as much as we had been hoping for. Other times, although we do meet all the criteria, the bank takes several days to approve and process the loan and we may have needed the money sooner. Fortunately however, the banks are not the only people that will lend us money but if we do borrow from somewhere else, we should be sure who we are borrowing from. Usually, money lenders other than banks can be placed in two categories, licensed money lenders and un-licensed money lenders, the later often being commonly called loan sharks. Although in some countries it is sometimes hard to tell one of these types of money lenders from the other, in Singapore they make it easy by having a website called loansingapore.sg/mondeylender which lists all the licensed money lenders. A licensed money lender has to comply with certain rules and regulations which include a limit on what interest they can charge, in order to keep their license, their rates of interest are therefore far lower than those of an un-licensed money lender. A licensed money lender is therefore subject to some kind of control whilst an un-licensed one is not and they can at times become very out of control, charging interest rates which are exceptionally high, taking advantage of our urgent need for the loan without any concerns as to how we will be able to repay them but repay them we must. As the licensed money lenders do have some controls placed on them, their interest rates, although still usually higher than a bank’s, are reasonable and their repayment plans are also reasonable and clear, especially compared to an un-licensed lender’s plans.
So although we hope we never do have need for an urgent loan, if we do we should be careful about from whom we get it and always ensure that the repayment plan is one that we can manage as otherwise, we may find ourselves in bigger trouble than the one we wanted the loan to get us out of. Singapore seem to be well adjusted to people requiring loans and so have the website to try and ensure that borrowers only get loans from reputable lenders. Surprisingly perhaps, because Singapore is now one of the wealthiest countries in the world, residents of Singapore still find themselves in situations where they need urgent loans.