Even to this day, even in the aftermath of the 2008 financial crisis which affected the entire world, including Singapore and its neighbors across Southeast Asia, there are still banks who haven’t heeded the call to reform. They are no longer bankers in the strictest sense of the word. All they are concerned with now is protecting and growing their balance sheets, even if there are still high profile risks attached to it.
But never mind the man (and woman) in the street, of which there are many. Simply show him or her door without any further explanation. By default of such bankers, new stakeholders have entered the fray of lending money to those who need it, a service which is considered to be part of banking practice. A good retail-oriented MoneyLender is prepared to spend a few more moments asking his customers to make careful considerations before applying for a loan or credit facility.
Let us lay out some of the rules and good advice that this money lender will be asking his clients to carefully consider. He asks clients to think twice before applying for a loan. The client needs to make absolutely sure that he is in a comfortable and healthy position to pay back the loan. He also needs to know that he has the discipline to keep up with timely payments until the term is completed. Fortunately, the lender always strives to offer short-term solutions which will not keep clients indebted for long periods of time.
Being upfront, he is the first to remind his clients that while the short-term option is prudent, it may carry above average fees to cover aspects such as convenience for the client and his lack of security or collateral.