If you are in need of money, a licensed money lender might be able to help you. However, it is important to understand how these lenders differ from loan sharks and other unlicensed moneylenders. These unlicensed moneylenders may charge high interest rates and other fees that could make it difficult to repay the loan. In this article, we will discuss how to find a licensed money lender and what you can expect from them.
Licensed moneylenders have to abide by the rules and regulations set by the government, so you can be sure that they are a legitimate company. In addition, licensed moneylenders will always be transparent about their fees and charges. They will also tell you about your right to a 10-day ‘cooling off’ period, which gives you the option of withdrawing from the loan agreement. This is to ensure that you are not pressured into taking out the loan, even if it is not the best option for you.
You can usually spot a licensed moneylender by their license certificate displayed in their office. Licensed moneylenders are also required to register with the Ministry of Law, so you can check that they have registered on the Ministry of Law website. Loan sharks, on the other hand, will not have a registration number and may be hard to spot.
Many borrowers choose to borrow from a licensed moneylender because they offer smaller loans than banks. These companies can usually provide a personal loan for up to $1,500. This is a much lower amount than a bank, which typically offers personal loans up to $50,000 or more. Licensed moneylenders also tend to have fewer restrictions, such as requirements regarding citizenship or income levels.
It is important to compare the rates charged by different licensed moneylenders before choosing one. You should also look at the terms of repayment. Some moneylenders only accept cash or cheque, while others will allow you to pay through direct debit. You should also find out whether there are any fees for late payments or other charges. Generally, licensed moneylenders will not charge more than 4% per month for their services.
Unlike loan sharks, licensed moneylenders are not allowed to advertise their services via SMS or flyers. In fact, they must only advertise their services through their business premises and on their websites. They also have to send out half-yearly statements of account to their borrowers.
In order to become a licensed moneylender, an individual will have to complete a bachelor’s degree in either finance or business administration. This will give them a better understanding of the financial industry and how to run a successful lending business. Additionally, they will need to pass a credit bureau assessment and background checks.
Licensed moneylenders typically focus on offering short-term loans, such as payday loans. These types of loans are often used to cover unexpected expenses, such as medical bills or car repairs. Licensed moneylenders will also work with borrowers to create a payment plan that will work for them. This is a great option for those who do not have the best credit history or who do not want to go through the hassle of applying for a loan at a bank.