Money lenders are crucial financial intermediaries that provide loans for all kinds of purposes – whether it is to finance a small business, a family’s emergency expenses or even to realise the dream of starting a new venture. It is therefore important for borrowers to choose the right money lender when they are in need of funds. Licensed money lenders are regulated by the authorities and must adhere to strict laws in terms of operations, lending requirements, interest rates, among others.

Besides being able to offer you a loan with lower interests, licensed money lenders will also be transparent in their dealings with borrowers and maintain fair practices. They are required to display their license number prominently in their advertisements and must maintain detailed records of all transactions they make with borrowers.

Choosing the Right Partner: How to Identify a Reputable Moneylender

Another benefit of choosing a licensed money lender is that they are not allowed to resort to harassing tactics to retrieve their debts from borrowers. This is because they are governed by strict laws that forbid them from doing so, unlike loan sharks who often terrorize their customers to force them to repay their debts.

Moreover, licensed money lenders will not push you to take their loan and will discuss the terms of the agreement with you according to your needs at which point you’re willing to proceed further. On the other hand, loan sharks may try to avoid discussing the terms of their deals with you in detail and use confusing language to mislead you into taking their loans.