Disadvantages of taking loan from sharks

 

Desperate people take desperate actions. These actions can make their lives tougher more hectic. There are many things, which can make a person’s life very hard, but there are some things, which do not just affect a single person but they effect the whole family. One of such thing is taking loan from sharks means unlicensed moneylenders. People apply for loan when they are in need of money for some emergency or financial crisis. It is the last step people take because no one wants to be in financial debt of some person or some company. Taking loan is a good option then not taking any help from any one in crisis but the right way to do that is going to licensed moneylenders.

Some people go to unlicensed moneylenders because these people do not ask for any type of document or paper work, and they charge less interest rate than licensed. People thing that by going to unlicensed moneylender, they are saving their money, the thing they do not understand is that they are putting themselves and their families in worst condition https://easycredit.com.sg.

The unlicensed moneylenders are illegal people who give money illegally. They do not follow any kind of terms and conditions and rules set by the government or authorities. They do not sign any legal paper or contract and if in case they get borrower to sign such papers, those papers will not have any legal value. These people make the borrower sign blank documents in the name of security but they can use that paper in any wrong way to cheat their clients. Illegal moneylender will do anything possible to get his money back if the borrower does not pay on time. They can harasses and abuse their clients physically and verbally. They will even threaten the family of the borrower to put the pressure on him.

People think that these moneylenders are charging less interest rate, which is not true. Legal moneylender will charge the rate annually or monthly but unlicensed moneylender will charge weekly or even daily, which means that borrower will be paying way to much interest rate. They can also increase the interest rate whenever they want.

Taking loan from unlicensed moneylender is a crime and people who are doing it are participating in it. The law can take legal actions against these people and the illegal moneylender knows that. They know people cannot take any action against them and they take advantage of the situation.

Because of all these things, it is best to get loan only from licensed money lenders sg. People should also be careful when they are taking loan even if they are taking it from legal companies. They should not take loan for things, which is not important like shopping or to use for restaurants tabs. They should apply only for their required amount; it is not a good idea to take money more than requirement just because it is possible. There are many licensed money lending companies, to know about that the easiest ways is to search through internet.