A moneylender is any person or organization that works in a direction to provide a small yet significant amount of money to people in need against a pre-signed interest rate that has to be given back, which is a way larger than banks or any registered body in general. The reason for that is that most of the people who opt for their services are either the ones who are denied by the banks to lend money due to some bad history/other probable reasons or the ones who do not want to get exposed against governments/registered bodies and want these transactions to stay under the table. These reasons make moneylenders’ work very risky and tough because these people may or may not return the money easily, thus forcing the interest rates to be way higher than general.
Banks would be rather called moneylenders than moneylenders as this is not the only function they serve, unlike moneylenders who are typically the ones who provide money against a high-interest rate and nothing apart from that.
As moneylenders may easily lend money to those who are already in debt, this shall make it more probable that the people taking their services may fall into even higher debts which would not have been an issue in the case of banks as they would not have offered money at the first place after knowing the person’s history. Thus, even if the two bodies seem to be similar, however, they differ in functionalities and working patterns.
Moneylenders keepproperty papers or any valuable goods as collateral and may also try to retrieve their money back forcefully as there is a high number of people they face that may deny giving the money back or even may leave the place.
Talking about the best money lender in Chinatown, Credit Empire is a licensed moneylender that offers a range of loans based on the requirements. Though this is not like a typical moneylender person or group as it is registered and assessed before providing loans. It is a moneylender predominantly based in Singapore. This is one of the ‘No Credit Check moneylenders’ that may offer funds even after having a bad credit history. If one can’t afford to pay back the loan within the given tenure, they will pay a lot of interest. Additionally, no credit check moneylenders often require people to sign a long-term contract.
Thus, even though a moneylender is a body that offers loans, it differs from other such bodies.