Banks VS Licensed Money Lender Kuching: Do You Know The Differences? - PowerPoint PPT Presentation

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Banks VS Licensed Money Lender Kuching: Do You Know The Differences?

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One of the most common obstacles everyone will face in life is financial issues. Whether you are a businessman or just a worker, you will have some hard times that urgently need money. The most common way that people will borrow money is through a bank, as the bank is the most trusted financial institution. But borrowing from a licensed money lender Kuching is an ideal solution too. – PowerPoint PPT presentation

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Title: Banks VS Licensed Money Lender Kuching: Do You Know The Differences?


1
a
Banks VS Licensed Money Lender Kuching Do You
Know The Differences? by admin Apr 3, 2022
money lender 0 comments
One of the most common obstacles everyone will
face in life is financial issues. Whether you
are a businessman or just a worker, you will have
some hard times that urgently need money. The
most common way that people will borrow money is
through a bank, as the bank is the most trusted
financial institution. But borrowing from a
licensed money lender Kuching is an ideal
solution too. Not many people will have the
thought of borrowing from a licensed money lender
Kuching as most people think that they are Ah
Long, but actually there is a difference
between them. We wont be talking about this
today, we will be focusing more on the bank and
licensed money lender Kuching. However, you need
to have some knowledge of borrowing money from a
bank and a licensed money lender Kuching. So, do
you know the differences between a bank and a
licensed money lender Kuching? Contact us
What is a licensed money lender?
2
A licensed money lender is a person or group that
is recognized by the government and law to
provide moneylending services. A licensed money
lender must apply for a permit to provide the
money lending services. After the money lender
provides the money lending service, they are
reimbursed monthly by the borrower until the
total amount owed is fully paid up. The lender
will charge a certain percentage of the borrowed
amount to the borrower, known as an interest
rate. What is a bank?
Contact us
3
Bank is a financial institution that deals with
money. They make a profit by accepting deposits
and borrowing money from those in need of money.
Lending activities can be performed by the bank
or through capital markets. Banks play an
important role in stability of financial and the
countrys economy, so there is a high degree of
regulation over banks Basically, banks and
licensed money lenders in Kuching differ in a few
aspects. In this article, Hen Fen Financial
Service will compare both of them as a guide for
you. Through this article, you will get to know
which financial institution will be suitable for
you.
Licensed money lenders and banks are regulated
by different governance.
Contact us
4
Licensed money lenders are regulated by the
Ministry of Housing and Local Government (KPKT)
under Moneylenders Act 1951(Act 400). The
licensed money lender business is governed under
the Moneylenders Act 1951. Banks are regulated by
Bank Negara Malaysia, which acts as the financial
advisor of the Malaysia Government under the
FSA, the IFSA, and the Central Bank of Malaysia
Act 2009 (CBA). and maintains the stability of
Ringgit Malaysias value. The Minister Of Finance
also plays an active role in the banks and
Islamic banks regulation. The minister is also
the approving authority for the banking license
applications with the power to impose conditions
on them. The minister also has the power to
revoke the license and investigate in prescribed
circumstances. Investment banks that undertake
capital market activities besides banking
activities are regulated by the Securities
Commission Of Malaysia. SC and BNM jointly
regulate investment banks and issued the
Guidelines on Investment Banks.
Licensed money lenders Kuching and banks require
different processing times to approve the loan.
Contact us
5
Licensed money lenders usually take a few hours
to days for loan approval as they may not
require as many documents as the bank needs. They
arent as strict too. This allows them to
approve your loan application in a shorter time.
The fast processing time makes licensed money
lenders a great choice when you need money
immediately. Banks require a longer processing
time, which ranges from a few weeks to months,
for loan approval. Nowadays, the standard
turnover time for approving the loan will be 3-5
working days, depending on how complete the
application is and the documents you submit.
This is due to the procedures such as checking
past payslips, credit history, etc., which make
the processing time lengthy.
The Sum of loans allowed for licensed money
lenders Kuching and banks is different.
Contact us
6
Licensed money lenders are allowed to provide
small or medium-sized amounts only. The average
sum is from RM1,000 to RM20 000. The loan period
may be between 6 months to 5 years. However,
some licensed money lenders can offer higher loan
sums with collateral. It depends on the licensed
money lender and how much they will lend you. It
depends on factors such as your income, current
debt commitment, and credit history. Banks are
allowed to provide large amounts of loans, which
range from RM3 000 to RM150 000. Many factors
will affect the banks decision, such as your
credit score, credit history, income, and
employment history. A general guideline in
Malaysia is that you can borrow up to 30 of
your gross income.
Interest rates are different between a licensed
money lender Kuching and a bank too.
Contact us
7
Licensed money lenders are allowed to charge a
maximum interest rate of 12 per annum for
secured loans and an interest rate of 18 per
annum for unsecured loans under Section 17(1) of
the Act. Banks can charge interest rates of 4 to
7 per annum, and it is subject to the
fluctuations that are determined by BNM. In
conclusion, both licensed money lenders and banks
have their own merits. It depends on your need
and requirement. You can go for a licensed money
lender if you urgently need money, or you can go
for a bank if you feel more secure with a bank
loan. But if you are going for a licensed money
lender, ensure that you look for a licensed money
lender, such as Henfen Financial. Borrow beyond
your needs, dont get yourself into more
debts. Related articles Top 5 Money Lenders in
Kuching
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the best loan service in Kuching. If you need any
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contact us and see how we can help you. Contact
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