The role of moneylenders as a source of credit

The primary and the major business of a moneylender is lending money to people who are in need of it. Money lenders can either be professional or non-professional. This division can be decided by the characteristics of the money lenders. Professional money lenders are people who do money lending as a business. But, for the … Continue reading “The role of moneylenders as a source of credit”

The primary and the major business of a moneylender is lending money to people who are in need of it. Money lenders can either be professional or non-professional. This division can be decided by the characteristics of the money lenders. Professional money lenders are people who do money lending as a business. But, for the non-professional lenders lending money is just another business along with their primary profession. A lot of agriculturists, traders, land lords, merchants and many other people who have surplus money participate in the money lending business for an extra income. Best licensed money lender in Singapore operates from both rural and urban areas. People who lend money in urban areas are often seen lending money to the people who live in rural areas too.

Works of a moneylender

Giving short term loans is considered the major work of the best money lender in Singapore. There are a number of reasons as to why people take loans. Some of them are described here. Some people might take loans in order to meet their religious and social needs. There are farmers who take loans from money lenders in order to purchase seeds, manure and other materials that are needed to do the vegetation and take care of it. Most people take loans in order to meet their consumption needs. The work of a money lender is to check the personal security of the borrowers that approach them. Only after knowing this security the moneylenders will decide to give the loan. The request for a loan might also be rejected by a professional money lender because of poor security check. Loans are also granted based of the security that is provided by the costly things and assets that people posses. Loans are also given against crops. This gives a security to the money lender that the borrower will pay the money back in time. A best moneylender in Singapore is a person who abides by the law and does his business. A money lender can have contact with the borrower informally and can approach them whenever needed. The own funds of the money lender goes into the business, meaning the profit or loss should be faced directly by the moneylender. The attitude of the money lender towards the borrower is based on the credit worthiness of the person who has taken the loan. They might decide to be flexible or rigid to the borrower.