Occasionally, we’ll face financial needs that necessitate financial assistance. This can be a medical emergency, renovation of the house, or any unplanned business opportunity that requires money we don’t have at that particular time.
To navigate these financial needs, we must understand who a licensed money lender is and their role and benefits in providing reliable financial services.
Who is a Licensed Money Lender?
A licensed money lender is a lawfully licensed financial institution that extends loans to people and businesses. Government regulatory bodies regulate their money lending activities to ensure the practice is fair and protect the borrowers’ interests.
Usually, licensed money lenders must adhere to very strict regulations concerning interest rates, charges, and terms of loan conditions.
Why Choose a Licensed Money Lender?
By choosing the best money lender, you get the following benefits:
Legal and Transparent
An accredited money lender does business within a controlled legal environment. Therefore, you are guaranteed that all their dealings will be transparent.
Importantly, you can confidently go to them because you will sign a legally binding loan agreement that will be fair since it covers all the law requires.
Variety of loans
Money lenders offer different loan products for various financial needs such as personal, business, or emergency cash. That variety ensures that something will suit your needs when you approach them. That makes you feel catered for.
Reasonable interest rates
Another important advantage of borrowing from licensed money lenders is their reasonably competitive interest rates.
Although the interest rates vary depending on one’s creditworthiness and how much one tries to acquire, the licensed moneylender sets reasonable rates.
Easy and fast application process
Licensed money lenders have an easy and quick application style, and you can get your cash faster than if you were applying for bank loans.
Be it online or physical, the application is made to be easy and comfortable for you.
Specialized financial advice
Most licensed moneylenders have experts on their boards who extend consultation services regarding economic matters on a personal level. They help borrowers analyze and make the best decisions concerning their financial situation and help them select an appropriate loan product and method of repayment that best suits their financial schedule.
How to Choose a Proper Licensed Money Lender
To enjoy all the above benefits, you must carefully compare and pick the right licensed money lender. Importantly, the following are some of the critical pointers that you should use in making the right choice:
- Reputation and Credibility: Research the reputation by checking the lender’s customer reviews. This will help licensed money lender with a good history of dealing fairly with their customers.
- License Verification: Ensure the lender is licensed by the relevant authorities. In most instances, you can verify such information from the official website of either the government or the lenders.
- Interest Rates and Fees: Enquire about the interest rates amongst the lenders. Be keen to look for a lender whose rates are relatively competitive and transparent about any not-so-obvious charges.
- Loan tenure and monthly installments: This refers to the repayment terms. Choosing a loan repayment scheme that fits your financial condition is important.
- Customer Service: Good customer service is a prerequisite for hassle-free lending. Research and borrow from a money lender who offers excellent customer support and promptly responds to your calls.
Final Words
While the above benefits of borrowing from a licensed money lender, seem obvious, you have to take your time and research them. Then, opt for a genuine licensed money lender to help you achieve your goals by providing financing and guaranteeing that your financial interests won’t be compromised.