Grabbing personal loans from licensed moneylenders is not so a modernized methodology but yet has taken churns in most of the rural as well as urban places. Moneylenders are not so a visible term in the world of credit cards but yet in times of financial crisis they shower upon to help many in their needs. Even though the case may be licensed moneylenders have got a lot to bear from the laws and the legislative. Re-issuing the date of the license, keeping nominal interest rates as well as maintaining legal bonds or papers while sanctioning a loan. Taking a personal loan from any money lender has got some of its advantages as well as some of its disadvantages. Thus the article below elaborates on some of the most essential pros and cons while sanctioning a personal loan from a licensed money lender.
Pros
Personal loans from licensed money lenders could be versatile
This is one of the most major advantages while sanctioning a loan from a money lender like EasyFind.sg. Unlike credit cards, money lenders often provide long term loans and lesser repayments if they are known to the debtor. This formulates as a major advantage for those people who are quite well known by money lenders. They can be ensured with higher loans and lesser repayments or yearly repayments.
Moneylenders provide a decent interest amount
This stands as another of the major factors while sanctioning a personal loan from a money lender. The reason for the fact is that licensed moneylenders like EasyFind.sg are versatile and on behalf of their particular debtors they can reduce the interest amount making it easy for the debtor to repay. The interest rates maintained by them are quite less unlike credit cards or banks and thus they are quite a helpful source for not so financially acclaimed person or someone who is not so familiar to digitalized banking.
Licensed money lenders are quite helpful for debt consolidation
This stands as another biggest advantage for debtors who are quite familiar with money lenders. When it comes to the case of debt consolidation, money lenders are quite helpful in suggesting accurate decisions to make. They work as the best debt consolidators as they acquire the proper knowledge of debts and repayments. Many of the licensed money lenders provide the exact knowledge on how to lower the monthly payments as well as the interest rates making it quite easy for the d
Cons
Debtors may get trapped in the debt cycle
The reason behind the fact is that while you are taking a personal loan from any of the money lenders for debt consolidation, the personal yet has again to repay the old loans. Even if to repay the credit card loans the person takes a personal loan it completely formulates the biggest debt cycle for the debtor bringing him to nowhere. Huge balances would be required to clear off these loans from the debt cycle.
For some loans, the money lenders charge higher interest rates
This is completely another fact or the dark side of money lenders. The reason behind the fact is that to make up lump sum profits ad to take advantage of people who are not truly accustomed to digitalized banking money lenders start charging a higher rate of interest than the banks for some particular loans. Mostly the case flows with complicated loans which takes a lot of paperwork in banks. Thus subsiding on these facts the licensed money lenders start charging a higher rate of interest.
Originating fees are charged by many money lenders
This is truly another of the fact which frustrates the debtors. The reason behind the fact is that many money lenders start charging originating fees from the whole amount from the debt. The fees may vary from 1 percent to 6 percent of the loan sanctioned. Besides such these originating fees are not cited in any of the paperwork which keeps no legal records of it. This remains truly an illegal way of charging money but yet when debtors have no other options in hand they try and go for the originating fees. The practice of formulating originating fees is yet in practice for rural area money lenders.
The business is infested with scammers
The dark side of the money lending world is that it is filled with scammers. Many scammers who pretend to be money lenders make the debtor’s sign bonds providing mortgages of their assets and later start abusing the debtor to pay more than the amount affixed. This has been into practice since a long time and has distorted the reputation of the money lending business. Thus taking every precaution and reading the terms and conditions precisely will be the wisest acct by the debtors while opting for a personal loan from licensed money lenders
