Monthly Archives: April 2022

Why go for professional money lenders?

In addition to providing products of daily necessity, the professional moneylender is more beneficial to the borrower’s situation. As a result of their personal relationship with the moneylender, the borrowers approach him in an informal and straightforward manner. In most cases, people are granted loans on the basis of personal security. To know more, visit good at money lending in Singapore.

Let’s see more about professional money lenders

The moneylenders are a diverse group of individuals. These moneylenders include professional moneylenders, both rural and urban, whose primary source of income is money lending, itinerant moneylenders such as Pathans, Kabul, and list alas, and non-professional moneylenders who mix money-lending with a variety of additional businesses. Large farmers, merchants, dealers, ‘arhatias’ (commission agents), the ubiquitous village Bania, goldsmiths, jobbers, and ‘sardars’ of ‘laborers’ in urban regions, and so on are examples of the latter kind of people.

They are referred to by a variety of names, including ‘sahukar’, Mahajan, Seth, and ‘bania’. Individual businesses or family partnerships are examples of this type of enterprise. Their methods of business are nearly completely different from one moneylender to the next. Each moneylender is often restricted to a small geographical area.

What are the features professional money lenders have?

The majority of moneylenders’ funds are privately held. They do not borrow money from one another, banks, or other financial organizations, and they do not use credit. Borrowers are members of the community who are economically disadvantaged, such as tiny and marginal fanners, artisans, peons, menials, and other low-wage laborers. The credit of moneylenders might be either secured or unsecured. Land, cattle, harvests, jewelry, and other material possessions have served as security in the past.

Its saving grace is that it is swift, casual, and flexible when it comes to making regular and timely interest payments. It should not be expected of financial institutions to bear the additional burden of providing loans at low-interest rates to low-income borrowers. What is required, adds Nkurunziza Achebe is the development of institutional sources of credit for the poor and underprivileged in Nigeria’s banks, which are now underdeveloped.

Conclusion

The moneylenders are a diverse group of individuals, both rural and urban, whose primary source of income is money lending. Borrowers are members of the community who are economically disadvantaged, such as tiny and marginal fanners, artisans, peons, menials, and other low-wage laborers. What is required is the development of institutional sources of credit for the poor and underprivileged in Nigeria’s banks.