The differences between moneylender singapore and banks

Many of us are still wondering, what’s the difference between banks and money lenders? Here we will explain the understanding and some differences from banks and Moneylender Singapore:

The Bank is a financial intermediary institution generally established with the authority to accept deposits of money, lend money, and issue promissory notes or banknotes. The word bank comes from Italian “banca” means a money changer. Meanwhile, according to bank banking law is a business entity that collects funds from the community in the form of savings and channelled to the community in the form of credit and or other forms in order to improve the standard of living of many people.

Non-bank financial institutions or money lenders are financial institutions that provide financial services and withdraw funds from the community indirectly (non-depository). Non-bank financial institutions consist of several types, namely financing institutions consisting of leasing, factoring, consumer financing and credit cards, insurance companies including financial and life insurance and reinsurance, pension funds consisting of pension fund lenders and pension funds institutions Finance, securities company funds, mutual funds, guarantee companies, venture capital firms and pawnshops.

Loan Offerings

Money lender keeps their loans document on their books but sells conventional loans to companies that market loans as securities. General laws require banks to deposit some cash on hand to handle losses tied to their unusual credits.

Here are some functions of money lender:

– Can provide credit in the short term or long term. Credit is included in the main activities of financial institutions. Usually, this credit is required by business owners to develop their owned business.

– Can be an intermediary for the owners of capital, both domestic and abroad, with companies that require capital. The function of moneylender this one certainly helps companies that are in need of capital paid by way of credit.

Who offers the lowest rate? Licensed money lender singapore or banks?

When dealing with the interest of borrowing money, which one offers the lowest rate? Licensed Money Lender Singapore or bank? Through our website, we always strive to provide an interest rate that can compete with other money lenders. Our five years of experience did not satisfy us, so we continued to look for ways to satisfy our customers. To find out more about the loan we offer you can visit our website.

Then, how does the bank determine its interest rate? When you apply for a loan to a bank, you will definitely consider several things in advances such as the type of interest offered, the amount of interest, and the amount of instalment you will pay later. How to calculate loan interest is not widely known by the public. When actually knowing how the calculation of interest on the loan is no less important if you will apply for a loan to a Bank.

In general, there are three types of loan interest calculations for all loan products that are flat rate calculation, effective interest rate calculation and interest rate annuity calculation.

– Flat rate is the easiest loan interest calculation. Using flat interest calculations, you will pay the same principal and interest instalments each month. This calculation is usually used to calculate interest on an unsecured loan or unsecured credit. The interest rate of the flat also called a fixed rate where the credit ceiling and the amount of interest will be calculated in a balanced manner according to the loan period.

– Effective Interest Rate
The effective interest rate calculation, also known as sliding rate, is a loan interest calculation performed at the end of each instalment period. Credit interest is calculated from the final balance of each month. Interest is calculated based on the principal amount not paid by the borrower. That way the amount of interest each month will vary according to the principal amount that has not been paid.

– Interest Rate Annuity
The calculation of the annuity interest rate is a modified form of an effective loan interest calculation. It aims to facilitate the customers in paying monthly instalments. The calculation of interest on this loan determines the amount of monthly instalment with the same amount but the composition of interest and the principal of the instalment will vary each period. The monthly interest rate will decrease but the principal instalment will be enlarged. This interest calculation makes the portion in the beginning of the loan becomes very large but will gradually shrink in the end of the loan.

What are the implications if you do not pay up legal personal loan in time?

Applying for a Legal Personal Loan or using a credit card to shop is not a strange thing, but you must make sure the personal loan is secure. This means you have to apply the tips for personal loan instalments not to be stuck because bad loans mean spending more money. Plus, personal loans that are stuck will bring long-term impact. For example, if you are known as a bad borrower, your name will be recorded in the system at the bank making it difficult for you to apply for another loan or use a similar service in the future. You can visit our website to apply for a Legal Personal Loan.

Bad credit usually happens when the amount of the loan bill you have to pay accumulates in each period because you do not pay the instalment as required, for example, because it is late or unable to pay. If that happens, there will be various impacts such as foreclosure of the asset being used as collateral, and the inclusion of your name as a “less than ideal customer.” If you borrow, you must make sure that the loan will not become bad credit.

Loans such as home mortgages, unsecured loans and so on are helpful, but can also be a huge burden if payments are not made on a regular basis. Here’s what you can do to avoid your personal loan payment is stuck or not on time:

– Make sure the loan does not exceed the ability
This seems obvious, but what exactly does “not exceed the ability”? It depends on your income, but in general, when applying for a loan or making a purchase with a credit card, make sure the instalment amount you must pay each month does not exceed 30 percent of your income.

– Make instalment payments a priority
When you already have the obligation to pay the mortgage, make sure it is a priority in monthly financing. The instalment is a debt, and debt should be a priority, especially if it instalments repayment of bank loans whose numbers will continue to rise. Do not be lazy or procrastinate with repayments and do it as soon as you have the money. If you receive income or income slightly larger than usual, add a small amount of the repayments you have to pay.