Money lenders have become more numerous and popular in Singapore in recent years. They have even become essential contributors to the nation’s economy, providing necessary cash to people who are in need of it.
You might be wondering why you might need the services of a licensed money lender in Singapore. Here are three big reasons, as well as why they have become important parts of the economy.
High cost of living in Singapore
Singapore has one of the highest costs of living in Asia. Even for a frugal lifestyle, you would need to spend about S$2,300 per month to cover expenses such as rent, utilities, food, transport, and Internet costs. There are other expenses as well, so it is common for many Singaporeans to rely on money lenders for a quick way to get extra cash.
Banks are always a viable option, but applying for loans in banks tends to be more difficult than with money lenders. Documentary requirements are more stringent, for one. Not everyone who needs money may qualify for bank loans. Money lenders, on the other hand, are more lenient and willing to adjust to the financial situations their clients are facing. Before taking on a loan, you can talk to your lender and figure out terms that are favourable to both of you.
Capital for expansion of businesses
Money lenders also provide a crucial source of capital for many Singaporean business owners. Small and micro businesses (SMBs), in particular, prefer borrowing money from lenders because of the quicker and easier process of loan applications. Moreover, negotiable repayment terms and interest rates are favourable for SMBs who may encounter financial difficulties in their businesses.
If you are a business owner in Singapore or looking to start one, moneylenders are good sources of extra capital. You can get business loans with reasonable terms and interest rates to get your business off the ground.
Vital source of cash for emergencies
Emergencies that involve large expenses can always happen. You can suddenly fall ill and need hospitalisation. Your home may need an expensive repair that you did not expect. Or you could unfortunately be laid off from your job, cutting off your main source of income.
In these circumstances, you can turn to your emergency fund for the extra cash you immediately need. But if your emergency fund is not enough, or if you have not built one yet, you will need to approach a money lender.
Money lenders offer many types of loans applicable for emergencies. These can cover hospital bills, doctors’ fees, medication, home repair costs, and other expenses that need a helping hand.
The best part is you can even negotiate with the lenders for repayment terms that fit your current financial situation. This way, you won’t be burdened further with paying down your loan.
Conclusion
Money lenders can be lifesavers when you experience financial need. Loans are approved more easily and quickly by lenders than by banks in general, making lenders a vital part of the economy of Singapore.
