Archive for June, 2017

Reasons why one should not lend money to family or friends

When it comes to lending money, people should be careful to check if the borrower is stable enough professionally to return it back. This is because the person lending money in case of an individual expects the borrower to return the loan during his needs. Hence, to make sure if they have a job to return the interest amount is not wrong. The main reason it is said not to lend money to family or friends is that, both the parties do not follow an agreement of timeline for repayments or the interest rates. The lenders do not know when the money would be returned and the borrowers do not know when to repay the loans. In this case, the borrower may not realize that there is a sense of urgency to repay the loan. It is also difficult for the lender to ask for the repayment thinking of the relationship hassles and doesn’t want the borrower to feel awkward. The borrower is some cases is treated like a servant just because he or she borrowed a certain amount in family gatherings and sometimes they must please the lender and do what he or she wants them to do. There are chances of the borrower asking for more money once you start lending them the money. Being a friend or a relative, the lender cannot say no and hence should continue to lend money even if they do not replay. Be it relative or friend, the lender might need the money back no matter what, as it can cause a disaster to the lender and his or her family during critical times.

Interest rates for family members

When the borrower is a family member, money lenders cannot ask for high interest rates. Some do not ask for interest rates at all. Some might think that asking for interest rates can spoil the relationship and can make them feel awkward.

Licensed money lender is the best choice

A professional money lender can offer you advice on how to stick to a repayment schedule so that it helps the person in managing the money properly. Money lenders in Singapore like the SKM Credit Pte Ltd – Trusted Moneylender In Singapore are registered under the registrar of moneylenders which issues specific interest rates for the public. Borrowers can also avoid spam messages from unlicensed lenders who try to convince them to loan money from them. Some illegal lenders try to use the personal information of their borrowers. The money lenders like IpCredit – Singapore Money Lender check the previously drawn salary of the borrower to estimate their level of income before they can actually issue the loan on their name. They are also the lowest interest money lender in Singapore.