When borrowing money from money lenders, you should know some details before getting the loan amount. The loan should always be obtained from a Licensed Money Lender. Licensed money lenders come under the control of the Ministry of Law and have to abide by the rules of law. The borrower is always protected, if he gets loans from a Licensed Money Lender. The Law Ministry has also provided a list of licensed moneylenders, so that borrowers can benefit from referring to the list, while borrowing money from moneylenders. The borrower should always be selective when choosing his lender, as it involves money matters.
- As they come under the Ministry of law, there will not be any complications from these companies at a later stage. The amount of interest that can be charged will be the official charges. They cannot charge abnormal amounts of interest on the borrower.
- A Licensed Money Lender cannot act in a threatening manner. He is prohibited from harassing the borrower.
- All amounts of interest such as monthly interest, late interest, late fee, etc., come under the control of the law and the lender should abide by these regulations when he charges the interest and other costs.
- All rules and regulations are also available by the Law Ministry which can be checked before the borrower contacts any money lender. These rules are easily available and comparisons can be made by the borrower, to have a pre-hand knowledge about the interest details that can be officially charged.
- Make sure that the terms and conditions provided by the money lender are clear and transparent. Especially read through fine prints, before signing the contract. The terms and conditions should be read through completely before signing any written document.