Getting a loan may come in handy when you suddenly find yourself cash-strapped and faced with an unexpected expense. But what if you need the extra cash ASAP and have a bad credit score or credit history? With fast cash loans, you don’t need to worry about those.
Fast cash loans are available from licensed moneylenders and do not require stringent credit checks. They are convenient, accessible, and can help tide you through rough times.
Unlike banks, where personal loans can take up to a few weeks, fast cash loans can be approved in under 30 minutes, and you can get the funds within the same day. If you want to know more about fast cash loans and similar types, read through to learn how they work and everything else in between.
What are Fast Cash Loans?
A fast cash loan is a short-term and unsecured loan, usually between S$1,000 and S$5,000. Various licensed moneylenders in Singapore offer this kind of loan. You may also come across these loans as payday loans.
These loans are ideal for expenses that need urgency such as household bills, medical bills, insurance premiums, etc. Fast cash loans come with a short repayment term, commonly between one to twelve months and a fair monthly interest between 1% to 4%. Make sure you can repay the loan quickly and diligently; otherwise, it will be more costly than convenient.
How Do Fast Cash Loans Work?
Fast cash loans essentially work like personal loans so that you can use the funds for your specific purpose. Some common uses include:
- Medical emergencies
- Home repairs
- Car repairs
- Essential travels
- Bill payments
- Other personal needs
If you need one, the first thing to do is find a reliable and licensed lender and apply for a personal loan or any fast cash loan. You can find the list of licensed moneylenders at the Ministry of Law’s website.
Once approved, you get the funds and use them accordingly to solve your financial situation.
What are Considered Fast Cash Loans?
The term ‘fast cash loan’ is used to refer to any type of loan that can be granted and disbursed immediately. Here are some types of fast cash loans in Singapore.
1. Payday Loans
A payday loan refers to a short-term loan that you must pay by your next paycheck or within a month. The approval of a payday loan is fast, as the payback is also immediate. Interest rates typically range from 1-4% p.m.
2. Personal Loans
Personal loans are unsecured loans that are flexible and can be used for various needs. Compared to a credit card, personal loans have lower interest rates. Same with payday loans, the moneylender’s interest rate is capped at 4% p.m.
3. Foreigner Loans
Similar to personal loans, this type of loan is dedicated to foreigners, but with different sets of eligibility criteria and requirements. Citizens, permanent residents, and foreigners can enjoy the same loan amount and interest rates.
4. Renovation Loans
Instead of tapping into your savings for home improvement, you can opt for a renovation loan. Renovation loans are loans used solely to improve a new or existing home property. The loan amount and interest rate is similar to a personal loan.
5. Business Loans
If you are an SME owner, you can use this type of loan to grow your business or fund necessary business expenses. With licensed moneylenders, you can borrow up to S$200,000.
At a Glance: Types of Fast Cash Loans
|
Loan Type |
Features |
Monthly Interest Rate |
||
|---|---|---|---|---|
|
Best Used For |
Available From |
Banks |
Moneylenders |
|
|
Payday Loans |
Short-term expenses such as a medical emergency or bill |
Banks, licensed moneylenders, and FIs |
3% to 5% |
1% to 4% p.m. |
|
Personal Loans |
For emergencies and other essential purposes |
Banks, licensed moneylenders, and FIs |
3% to 5% |
1% to 4% p.m. |
|
Foreigner Loans |
For emergencies and other essential purposes |
Banks, licensed moneylenders, and FIs |
3% to 5% |
1% to 4% p.m. |
|
Renovation Loans |
Home Improvements |
Banks and moneylenders |
3% to 5% |
1% to 4% p.m. |
|
Business Loans |
Business-related expenses |
Banks and moneylenders |
7% to 11% |
5% to 15% p.m. |
What are the Advantages of Getting Fast Cash Loans?
Aside from being a great alternative to traditional bank loans, fast cash loans come with many benefits that make them popular among many borrowers. Here are a few:
-
Fast Approval and Disbursement
The most significant advantage of fast cash loans is that it has a fast loan approval and disbursement process. Compared to banks, licensed moneylenders have a less tedious process where you can get your loan approved in under 30 minutes and your cash within the day.
-
Convenience
Licensed moneylenders in Singapore have made the fast cash loan application process highly convenient for borrowers. By offering online loan applications, borrowers can now apply online for a fast cash loan right in the comfort of their homes, office places, or wherever they are. However, you are still required to visit the moneylender’s office for a face-to-face verification and sign the loan contract.
Moreover, licensed moneylenders in Singapore are specific to giving out loans. As such, loan officers are focused on dealing only with loan requests and other loan-related concerns.
-
Fewer Requirements
Compared to banks and other financial institutions, licensed money lenders require less tedious documentation and fewer requirements. Further, they also cater to those with poor credit scores and those who do not qualify for bank loans.
What are some Disadvantages of Getting Fast Cash Loans?
There are also a few disadvantages to getting fast cash such as:
- Snowballing of interests
- The convenience of getting a fast cash loan can become a cycle
However, these disadvantages may only happen if you lack financial discipline and diligence in repaying the loans. Additionally if you don’t use the funds properly, you can also fall into deeper debt.
How to Avail of a Fast Cash Loan From a Licensed Moneylender?
To be eligible for a fast cash loan from a licensed moneylender, the borrower should be:
- At least 21 years old
- Should have a minimum monthly income of:
- Singapore Citizens (SCs) and Permanent Residents (PRs): S$ 2,000
- Foreigners: S$ 3,000
Aside from being eligible, you also have to submit the following basic requirements.
Singapore Citizens and Permanent Residents
- Identity Card/NRIC
- Proof of residence (e.g., utility bill or letters mailed to address)
- Proof of employment (e.g., certificate of employment)
- Payslips (within the last 3 months)
- Singpass
Foreigners
- Passport
- Employment pass, S-Pass, or Work permit
- Proof of residence (e.g., tenancy agreement)
- Proof of employment (e.g., certificate of employment)
- Proof of income (bank or payslips within the last 3 months)
- Singpass
For Business Loan
Eligibility
- Must be a registered business in Singapore
- Must be operational for at least at one (1) year
- Has a minimum turnover of S$60,000
Requirements
- All directors and partners NRIC
- Recent information report (Business Profile) from the Accounting & Corporate Regulatory Authority (ACRA)
- Recent Income tax assessment notice (both personal & from the company)
- Recent financial statement
- Recent invoices or business contracts
- Recent utility bills under the company name
- Recent 6-month bank statements
- List of assets owned by the company, directors & partners (if any)
- Office/shop tenancy agreement (if any)
Things to Consider When Taking Out a Fast Cash Loan
Like any other financial decision, there are crucial things to consider when planning to apply for a fast cash loan. These considerations allow you to get the best deals and align you with your financial goals as well.
1. Transact only with a licensed moneylender
Sometimes, having to face a financial crisis might lead you to make rush decisions. And doing so might lead you to the wrong lender, or worst, an ah-long or an illegal moneylender.
Illegal moneylenders may also present themselves as legal moneylenders who offer fast cash loans without fast approvals, sometimes not needing any requirement at all. To avoid falling victim to such lenders, always visit the Ministry of Law’s website for the updated list of licensed moneylenders in Singapore.
Always remain vigilant and know how to identify a loan shark from a licensed one. Doing this will prevent future problems and the hassles of having to deal with a loan shark. But, if you’ve already fallen victim or know someone is, you can check how to deal with loan sharks here.
2. Shop around and compare rates
While fast cash loans come in smaller amounts than other loans, borrowers should still handle it with a great deal of responsibility. As such, do not immediately settle with the first loan you come across without comparing rates and terms from other lenders.
To get the best interest rates, request for loan quotes of the same loan amount from multiple banks or lenders and choose one that will work best in your favor.
3. Verify your Eligibility and Requirements
It is also best that you prepare before applying for a loan. Make sure that you are eligible, gather all the documents necessary, and fulfill the lender’s basic requirements. Doing so will make the process even faster.
Note that lenders have varying requirements. Thus, calling the moneylender to know which specific documents you need to submit narrows down your choice of lenders.
4. Check Loan Details
Finally, before signing on those dotted lines make sure that you understand all the loan details. Remember that not all licensed moneylenders are the same. They have their own interest rates, loan tenure, and loan amount.
Finding the right lender and right loan can be an uphill task. To find the right one, make sure to check the following:
-
Loan Tenure
Before agreeing on a loan, find a loan tenure that will work best for your current finances. This will ensure that you will be able to handle your monthly repayments, avoid defaulting on the loan, and prevent legal repercussions in the future.
-
Repayment Schedule
Licensed moneylenders may offer a repayment schedule or a monthly payment that is personalized and easy for the borrower to commit to. Still, it is crucial to gauge your capacity to pay before signing into a loan contract or agreement.
-
Interest Rates
Fast cash loans often come with higher interest rates than secured loans. The demands for such rates come with the short-term nature of fast cash loans. Singapore has a myriad of licensed moneylenders, find one who offers the best interest rate to suit your budget.
-
Charges
Licensed moneylenders will only charge a processing fee not exceeding 10% of the principal amount and only upon grant of the loan. While for late payment fees, they will charge a maximum of S$60 for each month of late repayment.
Closing
Financial hurdles are almost inevitable for many in Singapore. With fast cash options, borrowers can avail of quick cash fuss-free and with a high chance of approval. Still, make sure to exercise due diligence to avoid spiraling into debt and explore all your options before signing into any kind of loan.
Key Takeaways
- Fast cash loans and other unsecured loans are ideal for sudden expenses and overcoming cash shortfalls.
- Fast cash loans usually have a shorter repayment period; plan your finances right and find a lender you can trust.
- Licensed moneylenders offer fast cash loans that you can get on the same day.
Need a boost in your cash flow? Loan Advisor can help you find the right lender and the best loan deals for your current needs. You can also find the latest financial news and trends from our blogs. Visit our website to learn more, or get your free loan quotes today – absolutely no commitment!
