Private Money Lending or Bank Loan: Choose the Best Option

We can all use some extra cash every now then, and getting a low-interest consumer loan from a bank may be a great way to urge that done. However, there are other ways for you to borrow money too.

No, we’re not talking about loan sharks. We’re talking about licensed moneylenders in Selangor. There are companies out there that make money by legally lending cash to people at interest, a bit like banks.

Before we get to their differences or apply for a personal loan Selangor, let’s mention how banks and moneylenders are similar:

  • Both charge interest for your money
  • Both will charge penalties for late payments 

The similarities end there, just about. There are many important differences between the 2 that will affect which one you select to travel to for your next application.


How Much You'll Borrow

Banks can afford to lend you far more than a daily moneylender could. You’ll borrow up to x amount and for a way longer tenure also. Banks can do that because they need cash from other services like savings accounts, fixed deposits, and other monetary services.

A licensed moneylender Malaysia can still lend you quite a sum of money, but not the maximum amount as banks can. This owes to the very fact that they don’t offer the other services, so their capital isn’t as large.

How Long It Takes to Urge Your Cash

Banks can take a short time to send you your cash since they need to process quite a lot of other services as they tend yours. While some loans do advertise fast loan disbursement, most personal loans from banks take about 5 working days to release the funds into your account, which may be a while if you would like the cash for emergencies.

Private licensed money lenders Malaysia on the opposite hand often take a much shorter time to get you your money. They will afford to try to do so since they often don’t offer the other services so that they can specialize in delivering the funds.

How They Check Your Credit History

Banks will undergo your credit history, past pay slips, and other financial details before they decide whether or you’re somebody worth lending money to. This practice of assessing risk and making sure you’re an honest paymaster before agreeing to supply you a loan is pretty standard for a bank.

Choosing Between the Two

With their different characteristics and regulations, banks, and private money lending services Malaysia offer unique advantages. 

So if you’re thinking to apply for a personal loan in Selangor,

Go with banks when:

  • You got to buy a big-ticket item sort of a car or house since banks can loan you up to 6 figures
  • You want to borrow over an extended period since banks offer a way longer tenure of up to 10 years
  • You don’t need the cash urgently, since it takes a while for banks to approve your loan and disburse the quantity 

Go with moneylenders when:

  • You don’t get to borrow an excessive amount of, which is sweet for little emergencies that need, but RM10000-RM15000 since moneylenders don’t often give out loans for higher amounts than that
  • You need the cash urgently as authorized moneylenders in Malaysia can get approval and loan dispatching done much faster than banks

Legal Documentation

A traditional one-page form note and a two-page form deed of trust do not address the myriad of issues in today’s legal environment. Environmental issues got to be addressed, alongside lending issues, and enforceability of securities and protections.
Location: Malaysia

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