A moneylender is a person or a group of people that typically offers a particular amount of loan at extremely high interest rates. According to them, since their loaning methods tend to be riskier, they charge more than an institutional bank.
Experience of the Lender
Typically, a private money lender states the number of loans they have issued and their years in business, just like hard money lenders. You should look for a money lender who has done more than a hundred deals. Of course, if the lender has a website, you can directly look for this information there.
In addition to that, several money lenders state their available capital. This is a great sign of experience.
Real Estate Specialization
Oftentimes, a money lender specializes in a certain area of real estate. For instance, a particular money lender may only issue loans for residential real estates. On the other hand, other lenders may provide mortgages on both commercial and residential properties. You need to ensure that you are working with a money lender who is specializing in the type of property you are looking to purchase. There is a lot of personal loan money lender in Singapore that falls to this standard.
Interest Rates and Costs
The costs and interest rates of a money lender greatly depend from one lender to another. Keep in mind that the usual interest rates run around 7% up to 12%. Usually, the fees of a lender run around 1.5 up to 10%. It is always ideal to look for the lowest available fees and interest rates for your private loan.
In addition to that, you should also keep in mind that money lenders have penalties. Oftentimes, it is based on the percentage of your loan balance.