Consequences that You have to Face after Signing Bad Loan Agreement

Couple in real-estate agency signing property loan contract

Everyone needs to borrow money at least once in their lives. Some people need to borrow more than other people because of their financial situation. Money lenders are one of the most easiest and convenient ways if you are looking for fast cash. It is way easier and faster than the banks. You can get your hands on the cash within few hours of the approval of loan.

Licensed moneylenders can help people a lot to deal with the bad financial times in life, when you need instant cash in case of any emergency. But it is true that there are non-licensed lenders as well that will trap you and you will keep paying the interest for the rest of your life. The interest rate of non-licensed lenders can be up to 40% per month. These lenders will suck all the money your earn by increasing the interest rate in case you are late or you fail to pay installment on time.

Let me share an example of an unfortunate man who took a loan of $8,000 five years ago from a money lender. The borrower was in habit of gambling and needed to clear his debts. Soon he was unable to pay the debt so he had to take another loan. And in order to pay every loan he took another loan. The number of loans summed up to EIGHTEEN loans. It came to knowledge of family after getting calls and letters from the lenders. His family then took the matter in their own hands and forced him to stop gambling and losing all money

The family started paying the loans by borrowing from relatives and friends, and taking small loans to clear previous debts. Eventually, all the loans were cleared except that $8000 loan he took 5 years ago. The family has repaid $76,800 in the repayment and they still owe $9600 to the lender. That is almost 10 times the original amount of the loan. They tried to negotiate with the lender but the ruthless lender refused to renegotiate the terms of loan. His children are still paying the loan installments while paying their own expenses as well.

This is what happens when you borrow money from unlicensed money lender. The interest rate he is paying is 240% per year which is surprisingly high. The purpose of sharing this story was not trying to scare you but it was to tell you the importance of taking loans from licensed lenders. Licensed money lenders have fixed interest rate according to the government rules and regulations. So the lenders will not take interest as high as they want.

Always take loans from licensed money lenders to avoid any trouble. If you are in Singapore and you are looking for instant cash then you should search online for licensed money lender Singapore. There are number of licensed money lenders that you can easily find on internet. You can also compare the interest rates of different lenders and choose the one which suits you best. Never get a loan from the unlicensed money lender to avoid any kind of trouble.