Bank Loans Vs. Moneylenders

by on February 22, 2017

Imagine that you are in need of money for an essential thing and you do not have any family members, friends or relatives to help you. What are you going to do? In such a case you would definitely look for another option as you need money anyhow.

There are certain options that you can choose to fulfill your financial needs. The most popular ways is going to a bank or a financial company and ask for a loan. The second option is going to a person who lends money on a set of conditions. There are distinctive features of banks as well as money lending places which are completely different sometimes. However the place you decide to go should either be the best bank with the best interest rates or the best moneylender Singapore in your area.

Let’s see what are the differences and similarities between these two places when it comes to a personal loan or any other type of loan. Basically both places are doing the same business as they lend money and let the money seeker repay the taken amount in different ways. However the conditions and rules of these two places are different.

A bank has a more legal based system which requires a lot of information and they look into the financial history while a lender just needs a few things to know and arrange thee loan in a few minutes. While banks provide loans with lower interest rates for longer years to pay back, a lender demands higher interest rates as they issue the loans with fewer conditions very fast. A bank is always a trustworthy and responsible place while a lender could be the opposite. If the lender is not registered under the particular body, he cannot be fully trusted.

A money lender always focuses on urgent smaller loans while a bank would always cater to the different financial necessities of the people. Lenders usually issue the loan within an hour or half an hour while banks take longer times. So for those who have very urgent financial issues, a person who lends money would be ideal. Most of the time, the bankers in any country ask for guarantors when applying for a loan. Sometimes it is a headache for the person who is in need of money. So if you want a loan and you don’t have any guarantors, you can move to a lender solution than wasting time at a bank. So there are differences and similarities between these two places and if they are reliable you can go for what you want.