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Why Should Borrow Money Only from Licensed Money Lenders?

No matter how much you plan in life, financial emergencies can come at any time, making you feel helpless. In such situations, you feel the dire need to borrow money to tide over financial difficulty. Taking a loan is one of the options to tide over financial difficulties.

If you need a loan, it’s important to borrow money only from licensed money lenders like A1 Credit. There are many reasons for this, but here are just a few.

1) They Follow Fair Lending Practices

Several unscrupulous lenders are waiting to take advantage of people’s financial difficulties. The government regulates licensed money lenders, meaning they cannot charge exorbitant interest rates and fees to borrowers.

As per Singapore Moneylenders Act, the maximum interest a lender can charge is 4% per month. The laws also mention the loan processing fee cannot be more than 10% of the principal amount. So when you approach a licensed money lender, you can rest assured of the best possible financial solution to tide over financial difficulty.

2) They Will Find the Best Loan for Your Needs

Licensed money lenders like A1 Credit offer various types of loans, such as personal loans, payday loans, bridging loans, or business loans. They will determine your financing needs and income and offer you a loan that you can afford to repay. Also, they will not charge too much money for it.

On the other hand, unlicensed money lenders may not have your best interests in mind. They may give you a too expensive loan or one you cannot afford to repay. This can lead to financial difficulty and even bankruptcy.

3) They Offer Competitive Interest Rates and Terms

Private money lenders offer competitive interest rates because they want to help people in need. They want to make sure that you are getting the best deal possible so that they will find the best loan for your needs. For lenders, borrowers are customers who can spread the good word about them. Also, if they offer competitive rates and terms this time, you are more likely to approach them if you need a loan in the near future.

4) They Are Trustworthy and Reliable

 Licensed money lenders are reliable because they follow fair lending practices. This means they will not charge you too much interest and exorbitant fees for your loan. As a part of fair lending practice, they will ensure that you are getting the best deal possible and that the loan they offer best suits your needs.

5) They Have Years of Experience Helping People Get Their Needed Loans.

Licensed money lenders have a lot of experience helping people get their loans. They know what kind of loan is suitable for which financial situation. Their years of experience help them study different factors to determine the maximum loan amount for a certain individual.

They know what affordable repayment can be for a certain income bracket. Their knowledge and experience help them offer customized solutions to borrowers that will help them tide over their financial situation, and they will be able to repay the loan comfortably. The increasing number of financial scams requires everyone to tread cautiously in financial matters. Borrowing money from licensed money lenders reduces the risks of borrowing, and you can have peace of mind even after taking the loan.

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