Money is a precious thing for everyone. Money fulfills every need of human beings, you may be planning to take up a loan in the future to fulfill your family needs or to expand your business operations. Despite, our best efforts, sometimes we find ourselves in a situation where we do need to borrow money, for a variety of legitimate reasons. While borrowing from banking and financial institutions, which often people find as the most ideal solution, many people prefer to turn to money lenders as an easier, convenient alternative to borrow money.
A money lender can be described as a person who offers personal loans of various types to individuals or groups that need financial help but at high rates of interest. Taking up loans from a money lender is also a great option rather than taking a loan from the bank as if you are unable to repay the loan amount within the due date they do not take a harsh decision and harass you besides bank takes up legal action against it. But sometimes money lenders are also found to be fake and dishonest, so before taking up the loan and signing the contract of loan you need to properly inquire about the moneylender whether he is fake or legit.
In this article, we will discuss some ways how you can judge the money lenders and find whether they are legit or not.
Some of those signs of real business are:
- Easy to reach and contact: A legit and licensed money lender will have their physical address, with a proper and regular contact number where you can easily contact them and an office where you can go and enquire about the moneylender and extra information you need to know about. Many of the lenders provide their email id in their websites this also acts as a symbol of a legit money lender and also gives you an option to chat on their website only. You need to watch all this carefully; many tend to ignore all this and falls into a trap. If they are easily available and have the online presence then you can relax, you have found a legit money lender. Crawfort offers you the fair loan and you can clear all your confusion by contacting them.
- Good customer service: The legit money lenders often do not pick up the calls him or herself rather they keep good employees to entertain the calls, to chat with you through the medium of the internet with all the knowledge on how they offer to loan to you. So you are given a good opportunity to clear all your doubts there and grab any information you want to know about their money lending terms and conditions. If the staff positively entertains you then you can judge them to be a legit money lender or a group of people that is company. Crawfort provides good customer service.
- The interest rate charged should not be above 12% per annum: licensed money lenders are bounded by the law and they have to follow the rules and regulations set by that government of their country. So you should know that they abide by the rules and the rules say that they cannot charge a higher interest rate than stated in the law. But yes, secured loans and unsecured loans can have different rates of interest. So if you find anyone charging you higher than the mentioned rate, then judge them to be fake and you can complain it to the Moneylender Registry.
- Interest in credit history: No legitimate lender is going to lend money without inspecting you that is without knowing your credit standing and the ability to pay it back. Even if they advertise that they specialize in those with poor credit, they will go on running a credit report and base their loan options on the findings.
- The loan agreement must be validated by a legal third party: The loan agreement is a legal document that can stand up in any court of law and must be witnessed by a lawyer, a legal officer or any other authorized person. If the moneylender does not do the following things then you should find why they are not doing so and ask them to do the following.
- Search reviews online: Taking up the reviews on anything is not at all bad; it just takes some time from your life. But it is good to waste your time which can save you from future problems. Taking reviews may help you determine which money lender is legit and which one is not.
All these above points are the criteria that you need to judge and find a moneylender who is legit.