Licensed Moneylenders Vs. Banks: Comparative Analysis of Loan Approval

Licensed Moneylenders Vs. Banks: Comparative Analysis of Loan Approval
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Money whether in the form of capital or personal loan is the ultimate thing that is a must for every action. Whether you are planning to buy daily groceries or a luxurious bungalow without having a sufficient amount you won’t buy anything. But throughout our lifespan there are several emergency situations arise when we need a certain amount of cash.

Thankfully there are fine ways to get emergency cash without giving trouble to our relatives and friends. We can apply to the bank for a loan or we can consider a Licensed moneylender for securing urgent cash.

Some people find a bank is a good option over the moneylender whereas some prefer lending money from authentic money lenders is more comfortable. To deal with such kind of complicated situation we are here. By following today’s discussion you will get to know both sides and be able to choose the suitable one. So let us begin.

Advantages of Securing a Loan from a Bank

  1. It helps you to grow your business by applying for commercial loans.
  2. Offers favorable interest rates.
  3. It also offers personal, education, marriage and vehicle loan.
  4. There is absolutely no interference from the bank.
  5. Applicant can get full access to utilize the secured loan amount.
  6. Most people rely on banks because of their security and long standing name.

The Pros of Getting a Loan from a Money Lender

  1. A licensed moneylender in Singapore offers fast loans therefore if you are in urgent need then this will be the best option.
  2. When someone applies with terrible credit, money lenders offer the loan amount, but banks won’t.
  3. Comes with more flexible repayment terms.
  4. Applicant may get a larger loan amount.
  5. People often get lower interest rates than traditional banks.
  6. It offers different variety of loans.

Considering a Loan from a Money Lender and Bank

In our upcoming segment we will see the comparative analysis between the two modes of securing loan amounts. So let us continue.

a) Assessment of Credit

An applicant who is in urgent need of money if he applies in the traditional bank then he or she has to come across a credit score evaluation. Banks are quite strict in this matter. They have a certain checking process through which the applicant’s past and present loan history will be calculated. There is a specific parameter that an applicant should fulfill. But if the applicant choose a Licensed moneylender then it will be quite easier to get cash from them than banks. Money lenders are not that much severe in terms of checking the credit of an applicant. They typically charge better interest rates and work with smaller loans. Collateral is an alternative when an applicant wishes to secure money from a money lender.

b) Loan Process

Though we are well aware that we have a very limited amount of time we must dedicate ourselves when money is desperately needed. Due to this we are able to apply online to a reliable and licensed moneylender Singapore for small amounts. Lenders make it quicker and easier to obtain a short-term loan than banks do. To submit an application for a loan go to the officer’s online application page, fill it out and include any necessary paperwork. Banks take a longer time to grant the amount because the administration lineup undergoes a lengthier process to go through the applicant’s documents. Besides this the loan amount will not be given to the applicant because according to the bank rules a certain amount can be issued under a certain type of loan. But there is no such facet with a licensed money lender.

c) Loan Amount

Despite our best efforts most of the time the loan money is not used to fund important projects rather it is used to fulfill other debts. As a result a lot of people consider repaying the debt ahead of schedule. Money lenders offer smaller loans that an applicant can borrow and repay without any hassle very fast. The entire process runs very fast and terms of repayment are also fast. An applicant can utilize the amount when they are in urgent need of cash. You may get all the information you need to know about advance payments by asking about their terms and conditions. The stringent requirements for approval make the bank loan application process arduous and onerous. If one is fine with mortgages then opting bank is fine.

d) The Interest Rates

It is important to consider the monthly interest rates even if you are hoping for a speedy loan approval. Your monthly income and estimated return may be affected by interest rates. Before entering the lending business get all the information you need from a licensed money granter including the guidelines, your monthly income and the interest rate on the loan. Your monthly income and other outgoings will be analyzed, and interest rates will be offered as recommendations. Banks are supposed to offer lower fees than moneylenders, who let their clients specify their special interests.


We hope that you have got a lot of information related to loan in this blog. After comparative analysis of licensed moneylenders and banks, you have to decide from where to take the loan. If you need cash immediately, you should consider going to a licensed moneylender. Along with this, you can also try for this through your bank.

Also Read:- Top 5 Things to Consider When Choosing a Moneylender Near Singapore