Things to aware of the legal options if you are unable to pay the loan amount

People who are looking for financial support will come across two types of people. The first one will be mortgage brokers and the second one will be the Moneylenders. The mortgage brokers are differing from the money lenders. In Singapore, there are many money lenders are available, not the brokers. Money lender Singapore will directly involve in the process whereas the mortgage brokers will not involve the direct process but involve as the third party.

It is not practically suitable that you will have your trust in someone who is involving as a third party. But the Money lender Singapore will be having a license that is issued by the Ministry of law. There are so many differences between the mortgage broker and the moneylender. To know about these differences you have to stay on this page and read the upcoming content.

Who are those mortgage brokers?

In providing the financial support both the mortgage brokers and money lenders may see to be similar but this is not the case. In brief, mortgage brokers do not make loans. Brokers will handle the process of the loans, but the loans are funded and closed by the money lenders only.

The broker will generally go through the variety of loan programs from the different money lenders. The broker will help you to find the best money lender, who can fulfill your financial needs. The brokers are like a personal concierge who can take all the hard works and stress out for finding the best deal. Brokers are also called as the streamline for the loan process.

Who are those money lenders?

The money lenders are holding the lender license. The money lenders will have the fund to support financially for the loan applicant. The mortgage brokers will not have fund and they are kind of marketing to the money lenders. You can also choose more than one moneylender instead of mortgage brokers.

The direct lenders will check your financial status for the qualification of the loan. It is the money lender duty to check whether the loan applicant is capable of repaying the loan amount or not. This qualification is not considered by the mortgage broker. If you are having a good relationship with the moneylender, then it is recommended to go with that money lender.

Why choose a money lender?

While between the mortgage broker and the moneylender, you can better go with the moneylender. This is because; the money lenders are involving the process while in the mortgage broker this is not the case and the money lenders are the source of funds but the mortgage broker, will not have any fund source and they are acting as the dealer.

What happened when you can’t pay the money back?

The situation will occur as if the loan applicant is not able to pay back the loan amount to the moneylender. This is one of the common situations that will occur. It may be due to any emergency purposes. So the money lenders will demand the fund from the loan applicants and they should not involve any violent action and they have to deal with the loan applicants legally. Crawfort (Singapore) is one of the money lending company have legal options for loan applicants who are unable to repay their loan amount.

With the help of debt collection agencies

When the loan applicant is failed to pay their loan amount, then it can be usually hired with the help of debt collection agencies. The money lenders will entrust the agencies with the critical task of collecting the loan amount from the loan applicants. While collecting the money from applicants, the lenders have to follow a certain code of ethics. This code of ethics is proposed by the Credit Collection Association of Singapore. Involving the activities like violence, harassment or intimation for the collection of the fund is forbidden in the code of ethics.

Reduction in interest rate

Furthermore, the licensed moneylenders in Singapore fall under the Money Lender’s Registrar. Where it is mentioned that the lenders cannot change the borrower interest rate than 4 % of the month. This 4% is irrespective of the type of loan, loan applicant’s income and their capability to pay. As a result of it’s the money, the lender cannot charge more than 4 %

Ask for some time

In case if you are failing in paying the amount to the allotted time, you can ask the moneylender for the extension period. It is better to talk with the moneylender and ask for an additional period. Another method is by doing bankruptcy. If the bankruptcy has done then the moneylender cannot sue the loan applicant and the account gets frozen which stops the accumulation of interest.

Final Thoughts

Though there are several options are available for the loan applicants, it is your duty to pay the loan amount in the allotted time. So make use of those money lenders and get the benefits from them.