Private money lenders in Ajman have been on the rise with instant loans to cater to people, What should you as someone seeking a loan know about this money-lending practice?
With the increasing prices around the world along with the COVID-19 pandemic, where many people may have reduced salaries or lost their jobs, it is has become difficult to keep up with expenses. Whether it is for buying petty things, paying hospital bills or to fulfill daily needs. While there are formal institutions such as banks that are able to loan out money to people, often such loans are inaccessible to many for various reasons such as the lack of required documents, a long process of getting the loan when required immediately, lack of surety and even physical inaccessibility.
It is in such instances, where private money lenders in Ajman play a vital role in ensuring that the locals have money to meet their needs.
What is private money lending in Ajman and who is it catered to?
- Private money lenders are not affiliated with formal financial institutions.
- If one does approach a private money lender in Ajman they can have direct contact with the moneylender and can thus, even have scope for negotiating the period, amount and even the interest rates of the loans.
- Furthermore, the private money lenders in Ajman are not just available to individuals seeking loans for their personal needs but are also available to people trying to start or expand their business ventures and in need of sizable investment.
How reliable are private money lenders in Ajman?
There are two types of private money lenders.
1. Licensed:
- Since the private money lenders in Ajman need to be licensed by the Central Bank of UAE, they are legal and hence have some level of accountability.
- But they have some checks and measures in place like checking some basic documents, basic salary requirements etc.
- They have a lower rate of interest as compared to the unlicensed moneylender.
2. Unlicensed:
- There are also numerous money lenders who are not legalized and are often known as Loan Sharks.
- Such private money lenders may give out loans easily but charge very high-interest rates which often people are unable to pay back even after years of working. These money lenders may even threaten individuals and their families if they fail to pay the initial amount and the interest.
So, no matter how dire your need it is important that you do a thorough research into the person you are borrowing money from. You do not want to get sucked into some mafia circle.
The Nature of Loans provided
- The private money lenders in Ajman, just like in other areas of the UAE, take up to 3-4 days to render the money to the person taking out the loan, and are a faster means for people in need of urgent money.
- The paperwork required to avail such loans are moderate.
- Most private money lenders go up to a maximum of AED 100,000.
- Each licensed private money lender may have different policies for credit check and usually have moderate rates of interest.
- Furthermore, some of the private money lenders in Ajman can also be found online.
- However, taking a loan through private money lenders online is a very risky process and must be avoided at all costs.
- Lastly, private money lenders in Ajman are not the only way people can get loans quickly, people can also get private loans through money lenders in nearby cities in case of urgency.
Final Word
Private money lenders in Ajman have played a huge role in ensuring people have access to money instantly and have helped many who may have been helpless had they not gotten the money when they needed it. However, although private money lenders in Ajman may seem appealing to many who are in a dire need of money, people must be alert and careful of the people they borrowing money from.
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