Answering this question depends on how much and when will you need that loan. If you want a bigger loan amount, taking a loan from the bank is an ideal option. If you need immediate cash e.g. for your emergency needs, bills, and any other small personal cash needs, securing a loan from a licensed moneylender is the best choice. But, take note that both have the following advantages and disadvantages.
Borrowing from licensed moneylenders
- The ideal option for a fast cash loan. They can approve your loan within minutes and claim it within the day.
- Have lesser requirements and fewer restrictions. You just need to fill in their form wherein they usually used an online application form. In addition, you need to submit the supporting documents.
- Easy processing. No more queue and paperwork involved when submitting the form. You just need to come to the physical address of the licensed money lender for approval or granting of the loan.
- They adhere to follow the rules and regulations set by the Registry of Moneylenders. It strictly follows the interest rate cap which must not exceed 4% per month.
- They extend loan offers to Singaporean and Permanent Resident even with an annual income lesser than $10,000. They have loan offers also even to Foreigners with an annual income lesser than $10,000.
- Acquiring a loan is possible even if you have a bad credit history
- Have a much lower loan amount than banks. Licensed money lenders provide smaller loan amounts. Loan offers can start from $1,500 up to six times your monthly income which ideally depends on your income.
Borrowing from banks
- Banks have a much higher loan offer. They can provide a personal loan amount of at least $10,000. Ideal for huge financial needs.
- Involves complex processing and requirements. Approval can take within days or more.
- Credit score, income, and citizenship matters. Bank takes into consideration this information especially on the loan amount they can provide. Those are also needed for your loan application approval or rejection. It can grant a loan to Singaporeans or Permanent Resident (PR) with an annual income of at least $20,000 and at least $45,000 for foreign nationals.