Private loans are a popular option for meeting an urgent need for money. There is no other option (other than asking acquaintances) to earn money in such a short time.
There are many ways to get a personal loan in India as follows:
- Commercial banks, private banks, cooperative banks
- Peer to peer lending (P2PL)
- Against securities
If you need a moneylender for a loan then you must contact Sumo Credit Pte Ltd. because they are a licensed moneylender & good at money lending in ang mo kio.
Lenders or private investors such as traders, not traders, and others who offer loans with very high-interest rates are essentially non-bank investors. While the government grants permission to these borrowers, there are many who operate illegally.
No withdrawal history: When applying for a personal loan from any bank, the first thing they do is check your creditworthiness. However, not all applicants have creditworthiness that meets the bank’s requirements. Indeed, there are individuals who have no credit potential. So in most cases, this leads to the rejection of the application. But for private lenders, no checks are carried out on credit institutions.
Fast Payments: Borrowers can get their funds paid at any time. Even for banks that claim to “offer personal loans in 2 minutes”, the actual time it takes to deposit funds into your account is long.
Minimal Documents: The bank requires various documents before processing the application, which is not the case with private investors.
No Processing Fee: Bank charges a processing fee every time you take a loan from it But moneylenders don’t charge any kind of processing fee.
So, in principle, the eligibility requirements are not that strict compared to banks.
High Risk: The risk of borrowing from a private lender is very high.
Very High-Interest Rates: While interest rates can be overcome, they are very high. This ranges from 20% to 45% depending on the size and specifically the power of attorney. Individual lenders set the rules when there is no oversight. But still, many take the accusations seriously because the urgency of money is easy to fulfill.
Repayment period: Can be daily/weekly/monthly or by agreement.
Recovery: The abuse these lenders commit to borrowers to repay their loans is extremely high. And they take the help of a recovery agency. And they use every means to get their money back. The most common way to make money is by expropriating assets, personal items such as gold, and so on. in an immoral way.
Fake documents: There are many illegal lenders who produce fake documents such as blank stamps, checks, and receipts with the borrower’s signature. The signed stamp duty paper serves primarily as proof, in the event of default, that the borrower has transferred the property on behalf of the borrower.