A Licensed Money Lender is a person who provides short-term loans. He is regulated by the Ministry of Law, when he lends out his loan amount. He has to abide by the regulations provided by the Ministry and follow the interest rates and other fee, according to the regulations stipulated. While choosing for the best Licensed Money Lender, the borrower will have to look into various factors, before choosing the best lender.
Making the Right Choice
- The borrower should borrow only from licensed money lenders. This can also be done by referring to the list provided by the Ministry of Law.
- The lender should not have a history of harassing his borrowers or behave threateningly. You can go through various reviews from clients who have previously borrowed from the lenders. You can also choose the lender, if they are recommended by someone you trust.
- Choose the lender who provides the best rates. This can be done by comparing the interest rates provided by various companies and choosing the lowest interest rates.
- You should check the guidance regarding the interest rates that can be charged by the licensed money lenders from the Ministry of Law and make a comparative study.
- Make the queries regarding the various terms and conditions before choosing the lender. They should be transparent and clear. The advertisements should not be followed as the terms may vary in reality.
- Lodge a caveat on your property, if you’re providing your property as a security to the money lender against the loan.
Once you choose a lender, you will have to get your queries clarified regarding the loan. Read the contract carefully before signing the contract. Make payments on time and repay the loan as early as possible.