Are you wondering if it is possible to make a loan from money lenders? Some people do not want or cannot go through a banking organization to take out a mortgage. It is, therefore, possible to ask someone around them to lend them money, rather than taking out consumer credit! There are also sites for loans from moneylenders, to find credit or leave an ad.
THE LOAN FROM MONEY LENDER, HOW DOES IT WORK?
When you do not wish to take out a loan from a banking organization, it is possible to turn to an individual to obtain your mortgage. Also called loan without banker, PAP / P2P, or loan without a bank, the loan from a money lender is often used as a substitution of the bank loan.
Loan from money lenders is less and less common and the scams are numerous. We advise you to take out a loan from a licensed money lender such as SGP Credit to build a reliable project.
When investing in real estate, few people naturally think of using a private lender. However, the private loan has certain advantages, such as flexibility and speed. Here are some techniques for using a private lender without being cheated which I always use to find a money lender near me.
WHY THE PRIVATE LENDER WANTS TO LEND YOU MONEY
Go to a private lender in the following cases: if you have financial problems or are unable to buy a personal home; you can also resort to it if you want to renovate your house which has a lot of equity. This is also the case for the purchase of a flip, an empty plex, or a very damaged building. The same if you want to buy to refinance later or for new construction.
HOW DOES THE PRIVATE LOAN WORK?
The loan from the moneylender does not require the payment of administration fees! You can find model contracts online on the public service website to make a loan from a money lender.
It is also advisable to find a loan offer from a money lender on this type of platform and using the locator you can find the nearest money lender using keywords like money lender near me, to make sure you come across an honest person and take out serious credit. In any case, be aware that the loan from money lenders is used frequently, and that it is regulated by the Ministry of Law Singapore, provided that the various formalities are respected.
WHY MAKE A LOAN FROM MONEY LENDERS?
You are most certainly wondering why some people decide to make a loan of money from a moneylender rather than going to see a banker! Many reasons can lead individuals to take out credit from someone they know, or through an online credit site:
• Avoid multiple appointments with the banker
• Take out a loan at a lower rate
• Take out a loan when you are prohibited from banking
• Take advantage of a free loan
In any case, credit from money lenders will be contracted without the intervention of a banker! The loan from money lenders can for example be very useful to be financed by a person of his family who has the financial capacities. It is also often used by people banned from bank cards.
Following an over-indebtedness procedure, an individual no longer has the right to use a credit card and to take out a loan from the bank for 5 years. The loan from money lenders who are registered with the Ministry of Law Singapore can therefore be a solution for people in search of financing.
IS THE LOANED MONEY LEGAL?
The private loan is completely legal. The money can come from different sources: it can be the money of the lender, or even that of the company that he wishes to invest in. The private lender can also borrow at a low rate and then lend you that money at a higher rate. This is a situation that we often encounter and another way to roll the money!
HOW TO CHOOSE YOUR PRIVATE LENDER TO AVOID GETTING CHEATED?
20-25% of people hesitate to use a private lender because of the risks. Here are a few points to watch out for to avoid being tricked.
1- Escalation clause or indexation clause
The principle of this scam: a clause that allows the interest rate to be increased if the loan is not repaid within the agreed period. Do not hesitate to call on a lawyer or a notary to enlighten you.
2- Spend money right away
With a private lender, everything must be done at a notary. If he offers you to take the application fees directly, beware. Likewise, if he wants to lend you an insane sum at a very low rate, he risks taking the application fees, without giving you the loan.
3- No flexibility
Make sure you have some openness. A good private lender usually agrees to extend for 12 to 18 months, if your project ever encounters an unexpected challenge. Similarly, it must also provide for the possibility that your building will be sold sooner than expected.
4- Loan agreement too easy
If the private lender does not ask you for any income conditions, no guarantees, and offers loan availability within 24-48 hours, ask yourself the question: where does this money come from? Unless you know it very well, don’t take unnecessary risks.
You can call on a notary to draft your loan agreement from money lenders. Thus, you ensure the legal compliance of the transaction, and will be better protected in the event of a dispute!
Also, taking out a loan from a money lender will be much easier than going to see a banker! Especially since loans from money lenders generally replace consumer credit. Bankers do not always agree to lend to households with low incomes. Depending on your borrowing profile, making a loan from money lenders can therefore be much simpler!
LOAN FROM MONEY LENDERS FREE OF CHARGE
It can also be advantageous to make a loan from money lenders if you need an agent urgently. The procedures for obtaining credit in banks can sometimes be quite long when a loan from a moneylender can take 24 to 48 hours!
Finally, the advantage of a loan from money lenders is that it will allow you to benefit from a much more advantageous interest rate. Consumer loans offered by banking organizations often have high rates. With a loan from money lenders, the interest rate will be negotiated between the two parties (the lender and the borrower), and is often more advantageous than those charged by the banks!
OPINION ON LOANS FROM MONEY LENDER
As you will have understood, making a loan from a moneylender can simplify many procedures for you. If you have decided to borrow money this way, it will allow you to obtain the funds quickly and in a much easier way than going to a banker.
It is still important to remember that a loan from a money lender is not without risk, especially if you are in the position of the lender! A loan from money lender is not as supervised as a bank loan. As a result, you will not have insurance or security for the loan, and take the risk of not being reimbursed.
You will therefore have to be careful to lend money to someone you trust. Also, do not forget to formulate a loan contract in writing: it will be used to attest to the amount of money you have lent to the borrower and will commit the latter to repay the credit he has. contracted.
Finally, keep in mind that making a credit from a money lender is not so simple, and that this transaction is regulated by Ministry of Law Singapore. You will therefore not be able to simply lend money to a third party. You will have to follow a very specific procedure depending on the amount of money involved.