Money lending is a business in which Moneylenders lend money at interest to another person. There are 2 parties in this transaction, one is Moneylender & the other one is Borrower. If you are looking for someone good at money lending in ang mo kio, you are at the right place.
There are many benefits of Money lending, some of them are given below:-
Benefits to Borrower
Easy to Borrow – If you borrow money from moneylenders then it is an easy process. Because there is no such complexity as banks & other financial institutions. You will get your loan in less time either, unlike others.
Less Documentation – There is less documentation required if you borrow money from moneylenders rather than banks & financial institutions. You need to collect a lot of documents if you choose other modes of borrowing.
Credit Rating – If you don’t have a high credit score right now, it may be impossible to get an approved loan from a financial institution. When applying for a loan from moneylenders, you will not have to negotiate with banks; Instead, you will borrow from an individual or group of lenders. You won’t have to give them a lot of information to get the loan approved, and they won’t be worried about your bad credit score or if you’re in deep debt.
Collateral – Moneylenders generally focus on the property value which you are developing. The property will be used as collateral against the loan, not your current financial situation. If you want to use any other property as collateral, talk to the lender about other options. They can accept other assets too, which you own provided these assets must be in your name. Moneylenders are known to be more flexible than banks, so meet the lenders & see what options are available.
Low Income – If you have a low income then it might be possible that you would get rejected for a loan in banks & financial institutions. But there is a higher probability of getting a loan from moneylenders than others.
Benefits to Lender
Passive income – In today’s world, everyone needs a passive income for better living& this is the best option to earn money without doing the extra effort. If you have the extra money in your bank account, cash, or any other mode & you want to earn income through it then you can earn income by lending money at interest to needy people.
High-interest income – If you start doing this business, then you can earn a higher-interest income than banks or FDs. Because you earn only 4 to 6 percent of the interest in the bank, but you can earn high-interest income in this business. It depends on which interest rate both the parties have agreed to.