Five Things to ASK before getting a personal loan
from a Licensed Moneylender
Making the decision to take a personal loan for the first time is a huge step. There are various reasons why personal loans are useful, and your holiday vacation shouldn’t be on the list. Many people take personal loans because of issues such as many debts, emergency expenses, home improvements and more.
We all know that banks can be difficult when it comes to applying for loans. There are easier alternatives such as licensed moneylenders that you can turn to for financial assistance.
Are you eligible to get a loan? Personal loans can usually be unsecured with no collateral needed in order for you to apply. This means the more you earn, the more you can borrow. You need to specific requirements with the agent as some licensed moneylenders do not approve the loan if you earn below a certain amount.
What document do you need for the application? Compared to banks, Licensed moneylenders’ rate of approval for your loan is higher. They will require payslips, bills, and other financing-related documents depending on case-by-case. But generally, they do not dive deep into your personal data since their main business is loans.
Licensed moneylenders can lend you a considerable sum but not as much as banks. It is an ideal alternative for urgent income such as hospital bills, home renovation and credit card debts.
You do not need to wait long as licensed moneylenders act swiftly on loan applications and approvals. Some may offer a 24-hour approval period while others may take up to five to seven days. If you are in urgent need of money, licensed moneylender are your best choice.
Do they charge absurd interest rates? As a registered business, licensed moneylenders must follow the law set by the Central Bank of Malaysia. The maximum interest rate by the law is 18%, depending on how much you are borrowing and the loan tenure.
Always keep in mind to only borrow what you need. Having a large amount of cash in hand can be assuring but understand your situation before making the decision.
At Icon Venture Capital, we make sure that we have your best interest in mind. If you have financial issues, we have professional consultants that will do their best to support you.
