Types of interests collected by a moneylender

Whenever money is borrowed from any money lender, a person is supposed to pay amount that is higher than the actual amount that was borrowed. This includes the interest as well. Interest is the additional amount that is paid by the borrower or any institution that takes the deposit at regular intervals. Interests by money lenders are collected on a daily, weekly or on a monthly basis based on the terms that were agreed upon during the time of giving out the money. This is the amount that is paid above the principal sum. The rates of interest collected differ between each money lender. Some offer loan with a small percent of interest while the others collect a really huge percent of interest to people. There are different formulae that are used in calculating the interest amount that is collected by the money lender. A simple interest considers only some factors when collecting the interest while a compound interest is calculated in a different method. There is the presence of low interest moneylender in Singapore who collects less amounts of interest upon the actual money that is borrowed. These people are considered to be some of the best money lender Singapore. They are highly sought out by a number of people when they are in the need of borrowing money.

Dangers of borrowing money from an unauthorized money lender

When choosing the person to borrow the money from, one should always be very careful. Borrowing money without knowing the actual conditions of the money lender can cause serious problems. The first thing to be noted is the tenure within which the actual amount borrowed is to be paid back. The other major thing to be noted is the amount of interest that is collected and the intervals they are collected on. The usual market interest rate should be researched before accepting to borrow money from any person. It is very important to compare the interest rate that is collected in the market and the interest that is collected by the money lender. A best licensed money lender in Singapore collects interests that are usually similar to the market norms. It is always safe to do your research before borrowing the money and getting to attached to any problem. Even though some people led money as a good deed, the number of people who do it the right way is very less. The numbers of usurious money lenders are increasing in the market.

Comments are closed.

  • Partner links