Money lenders lend small amounts of hassle-free and quick loans during unprecedented and difficult times. There are situations when you need really small amounts, not large enough to go for a bank loan and tire yourself in its legal documentation, securities and a long wait. In such times, these money lenders help you to cope up. There may be unforeseen situations where you need immediate and quick money, like buying any car insurance, meeting any medical emergency, or celebrating any festival, etc. Visit Cash Mart for more information about instant cash loan Singapore.
A licensed money lender is legally permitted and allowed to lend money in the country’s jurisdiction of which the lender holds the license of. The lender is enforced by law that he abides by all the rules and procedures set by the governing body of the licensor country failing which he is liable to legal proceedings and punishment by the legislation.
All the rules regarding the principal amount, Interest rate, lending fee, documentation and communication should be followed for effective and legal money lending by the licensed money lender. Principal lending amount depends on the borrower’s monthly salary. A lender can lend amount of a secured loan.
For unsecured loans, a lender can lend up to $3,000, if borrower’s annual income is less than $20,000, up to 2 months’ income, if borrower’s annual income is $20,000 or more but less than $30,000, up to 4 months’ income, if borrower’s annual income is $30,000 or more but less than $120,000 and any amount, if borrower’s annual income is $120,000 or more. A lender can charge interest percentage as allowed and set by the legislature. A lender can charge following types of fees as lending fee:
• For each occasion of late repayment of principal or interest• For each occasion the terms of the loan contract are varied at your request• For each dishonoured cheque issued by you• For early redemption of the loan or early termination of the contract and• Legal costs incurred for the recovery of the loan
Provided the sum of all types of fees does not exceed the Principal amount borrowed.
A money lender should always disclose the interest and lending charge before the deal is signed and money is lend. He should also state all the details of the deal like timelines for repayments, modes of repayment, documents to be furnished at the time of deal sanction etc. He should always give the legal receipt of the money returned by you and a summary of the amount paid and amount remaining with the details of interest payments. Remember, a licensed money lender is not entitled to withhold any part of the principal amount with him. Nor should he seize any of your original documents, passport etc and should never ask for your signatures on a blank or an incomplete Note of contract for the loan. Also, always check if the lender is licensed from the government’s directory of legal lenders and trust their websites only for the deals.