Why do people lend money?

In today’s world, people are running behind money. Money has become an integral part of the life. Earlier, before the invention of money, selling and buying goods were through the batter system. People bought and sold goods for goods. For example, they sold sugar for rice and then when money was invented, goods were bought with money and later money was used for all the consumer products in case of both buying and selling. This made its importance grow and people started to save money. Money became an important commodity and the cost of precious gold and diamonds increased rapidly. The number of thieves grew because of this and hence people were scared to keep money at home. They either deposited them at the banks or gave away to people at high interests. This is called money lending. A money lender is a person or a group of people who offer small personal loans at high rates of interest. They are distinct from the banks and financial institutions. The high rates that they charge are justified in many cases by the risk involved. They usually lend people who are gamblers and compulsive shoppers who often get into debt. This is because they have less access to the banks and they do not have a good credit history. Many countries require the money lenders to register with the government and they set limits of interest for them. In India, licensed money lenders are governed by Money lenders acts of respective states.

Disadvantage of borrowing from banks

Singapore is a country which has seen its fall over the years and now has developed to such an extent that it has the best money lending organizations in the world. During budgetary crisis, people require money and hence depend on banks for personal loans. But this involves a background verification of credit score, income and employment history and Total debt servicing ratio. Only if the above-mentioned terms match with the required threshold they charge, the person will be given the loan amount.

Singaporean money lenders

Money lenders in Singapore like the JEFFLEE CREDIT – Singapore Licensed Moneylender, SKM Credit Pte Ltd – Trusted Moneylender in Singapore etc. are popular for their services. They charge a specific interest value with no income restriction like banks. They work within the laws of Singapore and do not have an opportunity to harass the common public. To get the best possible loan with minimum documentation choose JR Credit – Preferred Moneylender in Singapore which is unlike banks where many documents are involved to get the amount.