A bank will provide you a loan if you are financially stable, have a job and don’t really need money, which is kind of an irony. Banks tend to approve your loan only when you have some collateral. In case you really need money for business or any other purpose, you can go for licensed money lenders in your area. Licensed money lender list can help you to get details about the lenders which are certified by the Government and can be a lifesaver when you are in need of quick money. These money lenders are basically businessman and like every business, there should be trust between client and company for proper functioning. There are many questions in people’s mind about money lenders,
Here are the answers to some common questions：
What are the interest rates imposed by Moneylenders?
The government places a restriction on the interest rates which can be charged by these lenders and also the penalties charged to the borrower as late fees, hence you need not worry about getting ripped off. Licensed money lenders don’t charge above the market rate and can only offer you money according to your salary. So, if a money lender is lending money at a higher rate or unusually large amount, take it as a caution.
How should I decide whether or not to borrow money from a Moneylender?
If you are need of quick money, Moneylenders can be a really good option and they can provide you with the money in half an hour if you have all the necessary documents. But you should consider following before borrowing money;
Go through all the paperwork thoroughly as licensed money lenders are bound to sign a contract and will have to stick to it under Government norms.
Make sure that there are no hidden fees as the lenders are not allowed to charge any fee (excluding interest) other than Service Fee at the start, late fees and legal fees (in case of a court challenge).
Borrowing money from a licensed money lender can be really easy and effective way to produce quick money. Licensed money lender list can be found on official Government websites to help you with the process. There are different interest rates for secured and unsecured loans, but in time of need, it can be really life-saving.