Pros and cons of lending or borrowing money from friends and relatives

Every man and woman is working day and night to earn money for a good future. The middle-class people are not looking for a luxurious home or a four-wheeler instead they want to live a life with no loans or debts. But this is not possible. People get things that are essential for day to day life and these items tend to go beyond their savings amount. This is when they try to get loans or borrow money from people. Borrowing money is no offense unless it is not repaid. Banks have a lot conditions and pre-requisites to get a loan. They need documentation and paper work to make sure the person is financially stable to repay the amount. And hence people who have less credit score choose money lenders. Money lenders are group of people or an individual who lends money to those who do not quality for bank loans. They do not have many conditions to lend money but a few basic ID proofs are needed. But money lenders can be annoying if they are family members or friends. There are many people who borrow money from friends and family members. There are many disadvantages of lending money to them.

Disadvantages of lending or borrowing money

Money is a prominent factor which is essential for the day to day life activities. Loans between friends and family can result in unexpected problems. This is because, the loans appear to be open ended with no agreements mentioning the date of return. Without the threat of penalty, the borrower has no urgency in repaying the money. Family gettogether become awkward, as the lender and the borrower cannot face each other. Sometimes the borrower becomes a servant to the money lender. He might be asked to serve the lender in all the ways possible. The borrower can also ask for more money which cannot be given when the previous debt is still pending. To help on these awkward situations, people can read more about licensed moneylenders. It is better to get loans from a third-party money lender than friends and family.

Licensed Money lenders

Jefflee credit is the ethical licensed moneylender in Singapore. They have licensed service in Singapore with the perfect documentation and agreements. They are completely authorized and timely updated with updates from the moneylenders Association. There are other websites like the global credit waves and expressloans. Global credit waves are the legal low interest moneylender in Singarpore. Borrow from licensed money lenders so that embarrassment within the family due to failed repayments can be prevented.