A licensed moneylender is someone who has been approved by the government to lend a certain amount of cash to borrowers for various purposes. They must comply with strict rules and regulations in order to do so, and should be able to explain the terms and conditions of their loan products clearly. This is so that borrowers can make an informed decision before borrowing any money from them, and to avoid any miscommunications that could cause more problems than solutions. Licensed moneylenders are also not allowed to solicit for loans via text messages or over the phone, and should always meet with borrowers in person at their approved place of business to conduct physical face-to-face verification of identity.
When choosing a licensed moneylender, it is important to consider their reputation and past customers’ feedback. A reputable moneylender should have a good track record and be transparent about their lending services. They should offer a range of financial products, including personal loans, debt consolidation loans, and even mortgages. In addition, they should have a quick and hassle-free process for document verification.
In comparison to traditional banks, a licensed moneylender is much more flexible with their credit score requirements. Typically, they will go soft on borrowers with lower scores and provide them with the funds they need quickly. They also tend to have shorter repayment periods, making it easier for borrowers to clear their debts faster. Finally, they should also be able to give a one-stop service for all their borrowing needs, such as renovation loans, debt consolidation loans, and business loans.