Introduction
Lending is the process where a lender who has surplus money gives a loan to a borrower (who is in need of money) and the borrower pays a certain amount of interest to the lender in the form of consideration. Then, the borrower has to repay the loan with a specified amount of interest to the lender within a stipulated time period. Lending mobilises the money in the economy from those who have surplus money or are willing to give loans to those who are in need of money. Money lending helps the country to achieve success and economic growth in the long run. This article gives a general overview of Singapore and its money lending trends.
Why is there a need for money lending?
Money lending caters to various needs and purposes of the borrower. Money lending companies provide various loans like personal loans, business loans, short-term loans, renovation loans etc. One of the advantages of money lending companies is that they approve the loan within a minimum time and involve less paperwork as compared to banks and financial institutions. If the money lending company is registered, then an individual can approach the money lending owing to certain benefits. In Singapore, apart from banks and financial institutions, various money lending companies play a major role as a source of finance for borrowers. Money lending is a beneficial process for the economy because it mobilises and circulates the cash in the country and helps the needy who are in search of cash. If you are looking for a loan visit good at money lending in Singapore.
Correlation between Money lending and the Economy
Money lending is a necessary process in the modern economy. Banks and financial institutions are the main sources of availing the facility of money lending. The rationale behind this is that banks, financial institutions, and money lending create a link between those who have surplus money (a saving function) and those who are in need of credit to fulfil their purposes. In this way, money circulates in the economy.
Individuals and corporations use money to solve their financial crisis so that they can start, expand, and fulfil their basic needs. Money lending also helps in increasing the GDP, per capita income, and enhances the standard of living of people. It also helps in reducing the problem of unemployment by solving the financial problem.
Conclusion
Money lending is an essential process in the economy. An individual cannot survive in the economy without credit. Money lending mobilises the money in the economy and supports the needy who are in need of money.