Private Money Lenders: A Guide for the beginners

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Private money lenders are people who are not associated with any bank or financial institution. They work on their own and have their own terms of agreement. It is very easy and fast to get finances from the private lenders in case of emergency or urgency. If you need fast cash within few hours to a couple of days, then private money lender is your best option.

Bad credit and credit scores do not matter while you are getting a loan from these money lenders. In most cases, the lender will not even check your credit score and credit history. Although, some private money lenders can check the credit history of borrower because of the risk involved in this type of lending, but mostly the credit history of borrower is left unchecked.

Due to the very simple terms and high risk involved, private money lenders provide the loan on high interest rates as compared to the banks and other financial institutions. Private money lenders have their own loan criteria which they pre-negotiate with the borrower. In most cases, the loan period is from few months to 4-5 years. The loan period depends on the amount of the loan and your ability to repay the loan installments.

Private money lenders give loans for different reasons including medical, real estate, car financing, refinancing, wedding and number of other reasons. The cash is directly transferred to your bank account or you are provided with the hard cash. It depends on the amount of loan you are borrowing. The cash amount is normally provided within the few minutes of the loan approval, which, in most cases is on the same day of loan approval

In the early days of introduction of private money lenders, the terms were set by the loan providers and they had every right to change the terms at any time. This was a huge disadvantage of these loan providers because in some cases, people paid more than twice the original amount of the loan and they still owed money to the lender. They had to take more loans to repay the old loans. But to control this issue, new rules are introduced and the monthly interest rate is fixed in these loans.

Now you can get fast financing without worrying about such issues because the money lenders cannot change the terms of repayment while you are halfway through paying back the loan money.But you must borrow as much as you need because the interest rates are higher in these loans. And if you are unable to pay the loan installments, then you will be charged more interest rate and eventually you will be unable to pay back the loan. You will keep paying the interest amount for several years and your loan amount will be intact. So you should not get more loan than you need.

If you are looking for a money lender in Singapore then there are thousands of money lenders available on the internet. You can easily search for money lender Singapore online and it will give you information of these lenders. Always choose a reputed money lender and compare the interest rates with rest of the market.

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