Facing a financial problem is inevitable. When borrowing money from family or friends is not an option, an instant cash loan is your best bet. This short-term loan can help you if you are in dire need of money. While your friends and family will not conduct a thorough background check, a fast cash loan is more secured because it comes with a signed agreement.
When searching for the best instant cash loans in Singapore, there are some factors you have to take into consideration. You have to be aware of the interest rates and processing fees. And while it might sound foreign to you, especially if you are taking out a loan for the first time, obtaining all the necessary information will help you decide.
What Is an Instant Cash Loan
An instant cash loan is a type of loan where you can get direct and quick access to funds once the application has been approved. More often than not you will receive the loan within an hour. Some examples are payday loans and personal loans.
Pros
Fast turnaround time: You do not have to wait for weeks to receive funds as applications can be approved in as fast as 30 minutes.
Convenient application process: There is no need to visit the brick and mortar office to complete the application because there is an option to apply for a loan online. It will only take a few minutes to receive a response from the moneylender.
Good credit history is not necessary: Regardless of your credit score, you will be able to get approval from the lending company.
Cons
High-interest rate and fees: Since there is a higher risk that borrowers might not be able to repay the money owed, the interest rates and other fees are usually higher than other types of loans.
Not a long-term option: If you want to get out of financial hardship, a fast cash loan is not a long-term financial solution.
Debt trouble: Even though getting a loan is fast and easy, you may end up in a debt trap if you are unable to pay on the agreed deadline because the interest will accumulate.
Reasons Why Singaporeans Need a Fast Cash Loan
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Emergency
You can never predict what is going to happen in the future. Emergencies that will require you to fork out some cash can be difficult if you do not have available funds. A quick cash loan will get you covered because you will be granted access to money the fastest and most convenient way possible.
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Funds for Business Operation
Another reason a fast cash loan will come in handy one day is when you are planning to expand your business. If there are unexpected expenses that are not aligned with your budget, then the expansion will come to a halt as you have no choice. With a quick cash loan, you can borrow money to finance a big business project.
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Debts
While a temporary solution, taking out loans can help you ease the burden of debt. Since you do not have to wait for weeks to know the status of your loan application, you will be able to immediately settle your debts. It gives you peace of mind because you have found a way to repay the money you owed.
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Unforeseen Bill Charges
Your income might not be constant, but your monthly expenses are. If you are short on cash and you need to pay your bills right away, a fast cash loan will save the day. There is no need to secure any form of financial documentation to receive funds.
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Fund for Investment Property
Investing in a property is a great idea because its value increases in the process. However, there are instances when you do not have enough money at your disposal to fund such assets. If you have taken out loans, then you will no longer have to worry about your investment.
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Holiday Trip or Traveling Abroad
Traveling abroad might not be as urgent and necessary as paying unforeseen bills or debts, but if you want to give yourself a little treat and you do not have enough budget for the trip, an immediate cash loan is a solution.
Moneylender vs Bank: Credit Approval Timeframe
A bank loan can be quite a daunting task because it involves a great deal of paperwork. Banks need to check your credit records before authorizing your loan application. If you are taking out a personal loan in Singapore, banks will not consider your monthly income as a qualifier.
Licensed money lenders that have been approved by the Registry of Moneylenders in Singapore are your best options. These licensed moneylenders have rules and regulations that protect borrowers’ welfare. The registry of these licensed moneylenders decides the loan amount, the interest rate, and the processing fee.
While the amount of money you can borrow from licensed moneylenders is smaller than the amount approved by banks, licensed moneylenders will be able to assist you in accessing the loan amount. A speedy loan approval which only takes about 30 minutes is one of the advantages that moneylenders provide. It is a better option for those who are unable to get quick cash from banks.
Read here to know more about Licensed Money Lender Guide in Singapore.
Why Is a Money Lender the Best Option?
The credit score is often one of the determining factors of most banks. This is why many borrowers are conscious about their credit scores because a low credit rating would reduce their chances of getting an approval from the bank. Some money lenders do not consider your credit score as a primary requirement.
However, you should also keep in mind that your loan application might get rejected if a licensed moneylender has found out that you have taken a loan from other lending companies. Moneylenders are checking your ability to repay the loan or if you can afford the monthly repayment. You will need to have a steady source of income to be considered by moneylenders.
What to Expect When Getting a Payday or Personal Loan Instant Cash?
Fast approval: Once they are satisfied with your financial information, your personal loan application will be approved within an hour or in some cases, 30 minutes.
Easy application process: Moneylenders will not scrutinize your credit score and they have fewer requirements. One of the benefits of personal loans in Singapore is how easy and fast it is to get an instant loan. Unlike banks that are putting strict lending criteria in place, moneylenders have minimal background checks because they only want to know whether or not you are capable of repaying the loan. When compared to conventional loans you apply for at the bank, an instant cash loan has a better chance of approval.
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You Don’t Need a High Credit Score
Applying for a personal loan Singapore from banks can be a bit complicated because you need to make sure that you have a satisfactory credit score. Since your credit report determines how well you have been spending your money, you will have a difficult time qualifying for personal loans Singapore once you have a low credit score. The best thing about borrowing money from moneylenders is that you can put your worries about credit scores aside. Your application can get approved so long as you have the ability to pay the loan back.
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Get Money Instantly
Moneylenders provide you with actual cash when you need it most. You do not have to think about not having prepaid debit cards because the money will be given to you directly. There is also a lesser chance of watching your money being flushed down the drain because of a high-interest rate and processing fees.
How to Find the Best Moneylender That Offers Instant Cash Loan
Conducting online research helps you to get all the relevant details that will help you make an informed decision. Checking out the web will give you an idea about the available choices, company information, and payments. You will also know if the lending institute you intend to borrow money from has a good reputation if you are going to perform a background check.
Reviews and forums are also helpful when it comes to helping you determine whether or not a company can be trusted. Previous customers will be your number one source of information as they can help you check how a moneylender in Singapore operates. When reading reviews and forums, make sure that you are checking a legit site. Anyone can pose as a customer just to make it appear that a moneylender has a good reputation.
Government directories will give you an idea about the money lenders that are permitted to operate because they have complied with the legal requirements. If a moneylender is legitimate, it will be easier for customers to build trust. You will also be assured that you will go through the right application process without worrying about relevant arrangements and payment terms.
How to Apply, Eligibility, Requirements
You have to be at least 18 years old to apply for an instant cash loan. You should also provide valid identification and proof of income that will determine if you can repay the loan. Depending on the moneylender you considered, applying for an immediate cash loan is easy.
All you have to do is to fill out the application form which is available online. Once the form has been completed, you will need to wait for the company’s approval. You will get instant loan within 30 minutes.
For first time borrowers, applying for an instant cash loan might be intimidating considering the requirements associated with applying for a personal loan from banks. Loan Advisor will help you with your choices. It is a loan comparison site that helps you compare and select the best loan options.
