The money lenders are the people who give a small number of loans along with high rate of interest. Money lenders are very different from banks and other financial institutions. Their norms are entirely different from them. Their high rate of interest is justified as there are several other vital factors involved in the process. They help people when they require quick money, or they want to start a business. They are mostly registered under the registry of money of lenders. Also, they mostly approve of the licensed money lenders. A person before taking money from the money lenders they can agree that they are registered under the Ministry of the money lenders.
Various Kinds Of Money Lenders
•Professional money lenders
•Rural money lenders
•Urban money lenders
Research says that there are multiple kinds of money lenders. Some money lenders the primary source of income is money lending. Also, other forms of non-professional money lenders lend money along with other activity. They have funds which are mostly owned by themselves and not by other bank or any institution. The middle class or weaker section of the society take such loans.
The Function Of A Money Lender
Money lenders credit can be secured or unsecured depending upon who the money lender is. They are also unregulated. There are various functions of money lenders are as follows:
•Their primary purpose is to give temporary loans. That could be loans given for utilization purpose or to meet the societal and religious requirement, or it could also be the needs of farmers for the lack of fertilizers, seeds, cattle, etc.
•The funding of loans is based on the security of valuable belongings.
•These money lenders often meet borrowers who approach them directly and in a much informal way. And these people (borrowers) usually have personal contact with them.
The non-professional moneylenders prefer to lend in kind. To take help of such licensed lenders in Singapore, one should look out for Money lender Singapore
These lenders play a very significant role of importance in helping people to reach their short-term monetary needs. Not only this but also they give loans for utilization of various needs like social and religious ceremonies. They lend money to people by personal security. They act as a helper and also as a guiding light for the ones with the primary requirement of personal loan, and they also have the probability of flourishing in future if they get good competition in the market.The money lenders should be chosen after considerable research and only the licensed money lenders should be trusted. Only the licensed lender can help in getting the immediate cash without any trouble.