Many people do not have sufficient amount of money to fulfill their basic requirements. Some people, who have monthly income to go by the month, do not have enough money to save it for emergencies. These people go through very hard time when they need urgent money. In some cases, people visit banks to apply for loan but there are too many conditions that needs to fulfill to get the loan approval from the bank, such as the person should have a big salary amount. He should have property or vehicle to submit as collateral. There are also paper works or documentation requirements. Even if a person completes all these requirements, he will have to wait for day, even weeks to get the approval. That is why going to bank only help 5 to 6 percent of people out of 100 percent.
However, that does not means that there are not other options for those people, whose loan application have been rejected or they cannot fulfill the requirements of a bank. There are many money lending companies which are help people who are in dire need of cash and they need money on urgent basis. There are different kinds of these companies, which are working in different ways, but the focus of these companies is the same, which is to give loan to those people who need it the most. Finding the right money lending company is not an easy task. It requires consideration and thinking. People need to know everything about all kinds of companies to choose the right one. There are p2p money lenders, brokers and private money lenders.
Private money lenders are those which work for themselves. They do not use other investor’s money to use as loan for their clients. These people have very limited packages and that is why they have high interest rate than other companies. Brokers are those people who work as a third party and use other invertors’ money as loan. When borrowers apply for the loan, the broker send his details to different investors and get offers from them. He then passes the offer to the borrower and asks him to select one whichever is close enough to his requirements. After that, the investor and borrower deal directly with each other. P2p money lending clubs are working same as brokers but the difference is that the investor who invest in p2p clubs are common people who wants to invest some extra money they got and get profit.
It is up to the people which types of company they choose. The interest rate of p2p companies and brokers are less then private money lenders that is these companies are better option. However, it is also important for people to apply through moneylenders sg for the business. People who are lending money without license or people who are borrowing from them, both commit serious crime and can be charged legally. This condition as been applied for the benefits of borrower because authorities understand the hard time people face when they need cash.