Many people associate money lenders with this kind of leg-breaking mafia character. Let me tell you that the reality of the private loan is quite different!
Are you looking for alternatives to the traditional banking system that rejects you? The loan of money from a money lender in Jurong reaches out to you. It is legal, framed by the Ministry of Law Singapore, but very risky because scams are commonplace on the Internet.
The offers of loans from money lenders are multiplying. Faced with these increasingly numerous loans, questions concerning a private credit application are recurrent. They mainly concern the seriousness of the individual lenders and the terms of the credit.
For those seeking advice on private lending, we recommend contacting a lender through peer-to-peer lending platforms on the internet which connects individuals who need money, and investors who are willing to lend it.
The private loan is a completely legal, honest, and secure method of financing. Moreover, the practice is regulated by the Ministry of Law Singapore, it is prohibited for a money lender in Jurong to extract more than 4% in per month interest charges.
Also, any form of extortion is prohibited, which, of course, goes without saying in our society.
In addition, the legislation goes both ways: according to the Ministry of Law Singapore, any creditor is entitled to put the debtor’s property under guarantee.
Who are the money lenders?
Moneylenders can be groups of investors, but also individuals. Virtually anyone with access to large sums of money can get into private lending. This money can come from a variety of sources, such as personal wealth, home equity, business income, and many more.
Beneficial in several cases
Private loans are less restrictive than bank loans, and also much faster for approval. Here are some cases where it might be wise to use the services of a money lender.
Bad credit
If your credit is just below the magic value for the bank to design to grant you a mortgage, you can use a money lender. However, you need to be honest with yourself about your financial situation by asking yourself if you will be able to repay the lender.
Find a serious money lender in Jurong
Many reasons can lead us to do this type of research. First, there is the refusal of “classic” banks. A private loan responds to growing demand from “credit left behind”, such as the unemployed or students who want to finance their studies.
Difficult to apply for a loan when you are unemployed, where your parents cannot provide specific security. Same thing when you are over-indebted. It happens that a file of over-indebtedness does not pass, and to face these creditors, for a short duration, it is necessary to borrow a certain sum, remains to be done under good conditions.
The reasons for credit from money lenders are therefore above all social, but not only, since doing without banks is also sometimes a political act.
Does the money lender need a permit?
Does your company offer “alternative” financial services to which borrowers turn, often because of too high a level of debt? Do you run a finance or pawnbroking company? You must have a money lender’s license issued by the Ministry of Law Singapore before starting your activities.
If you do your business on the web, you also need this permit.
Lending sites between individuals will also verify this information before committing the money of their investors.
The loan from money lenders: recognition of debts
For a long time, a loan of money between individuals was limited to the contribution (and the support) of one’s relatives and family, with the risks involved in a blind trust in the person for whom the money is intended. Today rules govern it, hence the importance of writing an acknowledgment of debt if you do not go through a recognized organization.
Terms
The acknowledgment of debts between two people will be valid from the moment certain rules are respected:
➡ The amount of money made available must be included, in letters and numbers, to avoid grounds for discord.
➡ In the same way, the identity and signature of the borrower and the lender must appear on the document, written before a notary or under private signature, as desired.
➡ Do not forget to indicate the date, the interest rate as well as the monthly repayments (+ the start date of loan repayment).
Private lender: what taxation?
Concerning interest, if there is no minimum imposed (an interest-free loan can be granted, it is legal), private lenders cannot apply a higher rate than that fixed by the Ministry of Law Singapore.
Finally, if I am a money lender in Jurong who lends money with interest, this must be declared on the annual tax sheet.
A written act is necessary to formalize a loan between two adults. Documents to facilitate the drafting of credit between individuals are easily accessible on the Internet.
The advice of OT Credit: beware of credit scams on the Internet
When you are in a difficult situation, unemployed, over-indebted, and you have an urgent need for money, the temptation is great to respond to advertisements or offers published on the net. There are many loan scams between individuals, you have to be vigilant.
➡ If I want to lend money: I have to write a contract, and go through a serious and recognized platform
➡ If I am looking for credit: do not send personal documents without being sure of the source, and do not send money over the Internet to receive the loan (classic loan scam between individuals: “need to pay the shipping costs before receiving the money”).
