Difference between normal moneylender & licensed one

Your door could be knocked on by a financial emergency at any time, knowingly or unknowingly. It may be for a company, a wedding, or other factors. Another scenario is that you could run out of money in the middle of the month and want a few thousand to last the rest of it. Most people find it difficult to secure loans or borrow money in these situations to deal with the financial crisis. Licensed moneylenders are your greatest alternative if you ever have a financial emergency and want a quick loan.

You may only receive some of these advantages from licensed money lenders, not from unlicensed ones.

No Unsavory Deals

the best money lenders in Singapore have a physical location that is open to the public and a readily accessible fixed phone line. A legitimate money lender would conduct all business operations including contract signing in their office rather than depending primarily on text messages and phone conversations, as the majority of illicit money lenders do.

You may easily obtain loans

In contrast to shady lenders, trustworthy ones can process your loans fast. For instance, if your annual salary is $40000 or above, you may quickly and simply have your loan accepted. Additionally, your credit history won’t be carefully scrutinized or given undue weight.


Your questionable credit history should not be a concern when applying for a loan from a reputable lender. You won’t have to worry about tiresome and drawn-out approval procedures because borrowing money from a legitimate money lender is so effective. The money is yours to keep after the necessary paperwork has been turned in and your application has been accepted.

Few Conditions

One benefit of borrowing money from the best moneylender in Singapore as well as a registered money lender is avoiding the thorough and time-consuming application process. People react differently when they hear the term “licensed.” For some, it may be a source of relaxation, while others may assume that working with a genuine business or organization will require a tonne of paperwork.


Personal loans come with a higher interest rate and need to only be utilized as a last resort, whether they are obtained through banks or authorized moneylenders. It’s time to create a stricter budget to help you live within your means and discover methods to raise your income if you regularly find yourself needing to turn to licensed moneylenders due to cash flow concerns.

What are payday loans?


The term “payday” refers to a payday loan when a borrower writes a post-dated check to the lender for payday, but immediately receives a portion of that payday amount in cash from the lender. In common parlance, however, this concept applies even if the repayment of the loan is linked to the borrower’s salary.  Legislation on payday loans varies widely between states or provinces, in different countries and in federal systems.

To prevent interest (unfair and excessive interest rates), some jurisdictions limit the annual percentage rate (APR) that any lender, including payday lenders, can charge. Some jurisdictions have made payday loans completely illegal, and some have very few restrictions on payday lenders.

What is a payday loan?

A payday loan is a type of short-term loan where a lender will extend a high-interest loan based on your income. Its principal is usually a part of your next paycheck.  Payday loans charge higher interest rates than short term loans. They are also called Cash Advance Loans or Check Advance Loans.

How to apply for payday loans?

Payday loans charge high-interest rates to borrowers and do not require any collateral, making them a type of unsecured personal loan. These loans can be considered hunting loans, because they have high-interest rates, do not consider the borrower’s ability to pay, and have hidden conditions that charge the borrower extra fees. As a result, they can create a debt trap for consumers. If you are considering a payday loan, you may want to look at secured personal loan options first.

Are Payday Loans Secured or Unsecured?

Most payday loans are unsecured. This means that you do not have to provide a guarantee to the lender or take out a loan in exchange for something valuable, as you do in a pawn shop.

 Instead, lenders will usually ask you for permission to withdraw money electronically from your bank, credit union, or prepaid card account. Alternatively, the lender may ask you to write a check for the repayment amount, which the lender will cash in when the loan is due. Under federal law, lenders cannot bet on a payday loan if they have the “authorized” (recurring) permission to transfer electronic money from the consumer.

How long do payday loans stay in the system?

Traditional debt records can be kept by credit bureaus for six to 10 years – companies that calculate credit scores, which can affect your ability to borrow in the future.  Payday lenders usually do not report to the credit bureau even in case of over payment. However, a one-time payday loan can be sent to the depositors when the lender sells the loan.


Payday loans are designed to cover short-term expenses and can be taken without collateral or a bank account. The catch is that these loans charge high fees and interest rates. Hope this article helps you in the best ways possible and you find feasible solutions to your troubles. For further details, feel free to contact an expert.