As we move towards the future, the cost of living is quite significantly increasing. There are lots of instances where we have to face unexpected bills or expenses that put us in a fix. Well, there is a simple solution for this, borrowing or taking a loan from Banks or Moneylenders. Well, if you are someone who is thinking about borrowing some amount from a moneylender then here are 5 things that you should know before doing so.
Things to Know Before Borrowing Money:
These are the top 5 things that you should know before picking a Money Lender. Hopefully, the provided information will be of help to you.
The Money-Lender Should be Licensed:
To know whether a moneylender is licensed, you just have to check the list of licensed lenders that are available in the country. After that, you cango through the reviews provided by other customers about the certain moneylender. This might be a bit time consuming but in the long run, it will be beneficial for you.
Also, you need to remember that there are a few rules laid down by the government. The rules state that the lenders can only use the consumer directories or their website or the exterior or interior of their place or business to advertise about themselves. If you are getting contacted by phone calls or text messages then this lender should not be trusted as they might turn out to be scammers.
The Type of Loan That You Should Choose:
Right after you have decided on the Money Lender, its time to think about the type of loan that you would want. Mostly, people go for major or minor personal loans. Major loans are those where you need to get a huge sum of money. For example, money for a wedding, etc. Minor loans are generally about taking a small amount of money that can be used to pay credit card bills etc.
once you have decided now comes the repayment terms. Do a bit of research on that as there are different types of repayment terms. Some money lenders offer variable terms and thus you can choose accordingly.
Eligibility and Documentation:
After deciding the type of loan that you want, you need to check whether you are eligible for the loan or not. Different loans have different eligibility criteria and you need to fulfill all the criteria to be eligible for the loan. You can contact the moneylender and get informed whether you are eligible or not. Some lenders also have the criteria’s listed on their website,Crawfort Pte Ltd is one such example.
After that comes the preparation of documents. You need to make sure that all the required documents are available with you. Contact the moneylender and they will provide you with a list of documents that you need to provide to get the loan. People with good credit history get loans quite easily.
The government has laid down some simple rules that all Money Lender need to abide by. A specified amount needs to paid to the Money Lender by the borrower if they are charged for late fees and similar kinds of issues.
The money lenders need to abide by these rules or the government can cancel their licenses. So, make sure to know all the rules and how much needs to paid and for what purposes before you take the loan. This will be beneficial for you as you will know whether you are getting cheated or not.
The time required for the loan to get sanctioned my vary from lender to lender. But what you must focus on is what to do after receiving the money. The first thing that you need to do is make sure that the approval fee for the loan is not too high. The government has specified a certain percentage of money that can be charged on the loan amount, anything beyond that is not acceptable.
There are also a few documents that you need to keep with you, which will be beneficial once the need arises. Documents such as loan contract copy, payment receipts, bank statements and copies of all relevant documents. In case of any discrepancies, you can produce all of these documents and get the matter sorted out.
Well, these are the top 5 things that you need to remember before borrowing from Money Lenders. Apart from these, there are a few other points too but those are not that necessary. The most important thing is that the moneylender which you are choosing should be trustworthy and should have a good reputation. Crawfort Pte Ltd. is one such moneylender, who has quite a good rap sheet among all money lenders. If you want to go with them then be sure to check for reviews and act accordingly.