It is not uncommon to come across financial difficulties. Most people will turn to a friend or family, but that carries its own risks and limitations, mainly in the potential of creating lasting damage to a relationship or the inability to borrow large sums of money.
Banks come across as a better alternative, but their application process is gruelling and demanding, often requiring a good credit score and in some cases, an income level above a certain threshold as criteria for eligibility.
Loan sharks, meanwhile, are well known for not shying away from using unscrupulous methods to recover a loan - often at outrageous interest rates. They are also the main reason why licensed money lenders are viewed negatively.
Licensed moneylenders are authorised by the government to conduct money lending services. Besides being legal, they offer a surprising amount of advantages over banks and their evil cousin loan sharks.
Licensed money lenders are required by the Ministry of Law to provide low-interest rates. To be more specific, the maximum interest licensed money lenders can charge per month is 4%.
Some, like Friday Finance, offer favourable interest rates. Our repayment scheme is based on a reduced interest framework, which means the faster you pay your loan the lower your interest.
There are certain things that are nice to have in an emergency such as level-headedness, decisiveness and adaptability among many others. But there's one thing most will agree is necessary but lacking when dealing with banks: speed.
Licensed lenders address that gap by creating a fast and streamlined process that often results in getting a loan approved in a day or two.
The best part is you often don’t need to prepare a laundry list of documents. For instance, at Friday Finance, all you need to register for an account within our portal is your Singpass and a CBS report; all the information we need is automatically extracted such that you don’t need to bother with the hassle of manually filling in a form. Safe. Speedy. Secure.
One of the biggest reasons why moneylenders have such a poor reputation is due to the actions and scare tactics employed by unlicensed money lenders. Examples include charging exorbitant interests, sending unsolicited messages, harassing borrowers, threatening violence when payments are delayed and more. Licensed money lenders are prohibited from engaging in such activity.
Unlike banks or other moneylenders, licensed money lenders will not surprise you with hidden fees when you are trying to pay back your loan. So you can rest assured that all the money you pay will go towards your loan.
Licensed money lenders offer a level of convenience difficult to match by banks and other loan institutions. One example is income requirements; some banks require you to make a certain amount of money to be eligible for a loan.
In other cases, you can't take a loan below a certain amount which may exceed the limit of what a borrower is comfortable taking as a loan. Licensed money lenders give you the freedom to borrow just the amount you need and are often willing to negotiate and customise payment terms catered to your conditions.
Furthermore, for most money lenders, a loan will be provided based on the borrower's ability to repay the loan as opposed to using credit scores which may not fully reflect a borrower’s earning capacity.
At Friday Finance we understand the need for a stress-free experience which is why we have made borrowing a seamless and delightful experience. If you are considering applying for a loan you can begin your application here.