A Guide to Getting an Urgent Loan in Singapore (2023)

Whether it’s a sudden medical expense, an unforeseen home repair, or a last-minute business opportunity, having access to funds when you need them most can make all the difference. That’s where urgent loans come into play. In Singapore, a global financial hub, the availability of banks and other financial institutions offering loan services is abundant.

Urgent loans in Singapore provide a lifeline for individuals and businesses in need of immediate financial assistance. These loans are typically disbursed faster than traditional loans, making them ideal for addressing emergency situations.

Here we will talk about the different types of urgent loans and how to qualify for one. Plus, we also curated a few tips to get approved for urgent loans to help you overcome financial hurdles and seize opportunities as they arise.

What Are Urgent Loans?

An urgent loan, also known as an emergency loan, is a loan that is used to cover expenses that need to be taken care of immediately. Normally, urgent loans do not require collateral. However, they are dependent on the credit score of the borrower, as well as the borrower’s ability to pay the monthly payments.

Types of Urgent Loans Available in Singapore

1. Personal Loans

Personal loans are unsecured loans taken from banks, licensed moneylenders, or credit unions. They are payable in monthly installments, with the loan duration varying from 1 year to 5 years. Licensed Money lenders offer this kind of urgent loan, and loan officers are the ones to guide you on the urgent loan process. Personal loans are suited for big expenses that cannot be covered by payday urgent loans, which are quite limited when it comes to the maximum amount that one can borrow.

Personal loans have a higher upper limit on loan amounts, allowing them to cover most if not all of the major emergency expenses.

Personal loans use the credit standing like bad credit for instance and existing loans of an applicant to determine the maximum amount of loan that they can get. The majority of banks in Singapore are willing to lend a maximum of 4x your monthly salary as long as you meet their income requirement.

You can also take out a personal loan with a licensed moneylender in Singapore. However, make sure that you are dealing with licensed lenders to avoid falling into a debt trap by loan sharks.

2. Payday Loan

Payday loans are unsecured loans that are associated with high-interest rates and debt traps. However, they are not as bad as they are portrayed, especially if you get yours from a reputable moneylender. This loan can come in a crutch since they are generally approved and faster compared to personal loans.

As stated above, this type of fast loan in Singapore has a low maximum loan amount, so it is only suited for emergency expenses that are not that costly, or if you are using the loan to supplement an already existing fund for the expense.

In Singapore, the maximum amount that you can borrow with this type of loan depends on your annual income, which in turn is calculated using the total income that you received for the past 3 months before you submitted your loan application. Learn more about the benefits of payday loan you should know before applying for one.

3. Credit Card – Cash Advance

In simple terms, a credit card cash advance is the term when you take out money against the credit line of your credit card. Instead of using your credit card to pay for purchases, you instead “withdraw” money from it similar to what you will do with an ATM machine. The total amount that will be available to you is dependent on your total credit line. Take note that some credit cards have a lower cash advance limit compared to the limit for using the card for typical purchases. Also, the amount that you can withdraw can be lower if you already used some of your credit lines.

We do not recommend a credit card cash advance, if you are thinking of this as a form of urgent loan, it’s always better if you can apply for a proper loan that has low interest rates. This is because the cost of withdrawing money from a credit card is rather high. You will be imposed with a cash advance fee, and the interest will be higher compared to the rate for normal transactions on the card. Also, since there is no grace period for a cash advance, interest rates start filling up on your balance as soon as you made the cash advance transaction.

4. Pawnshop Loan

Pawnshop loans are a quick way to get loan money, and it doesn’t have the long application process that traditional loans have. The lending institution providing the pawnshop loan as a form of urgent loan does not look at your credit score, which means that you can apply and get approved for a pawnshop loan even with a bad credit score.

However, a pawnshop loan comes with the risk of having to give up an item as collateral. Additionally, the total amount that you can get will be dependent on the value of the item that you will use as collateral. If the item that you will pawn is not worth much, the maximum loan amount that you can get is also quite low.

Normally, pawn shop loans offer about 25% up to 60% of the resale amount of the collateral. If you fail to pay the loan once it is due, the loan provider has all the right to take possession of your item and sell it, as stated by the loan agreement.

All in all, use pawn shop loans with caution. After all, you are already in an emergency situation, and if your financial situation doesn’t improve by the time the pawnshop loan is due, you will lose the item used as collateral. Use pawn shop loans only if you don’t have any other options for getting emergency money.

Eligibility for Urgent Loans

To ensure that borrowers are capable of repaying their loans, banks and financial institutions in Singapore have established a set of eligibility criteria for urgent loans. Note that the eligibility criteria may vary depending on the bank’s policies, but here are the most basic requirements:

• Age: Must be at least 21 and 65 years of age.
• Minimum annual income:
  • Singapore Citizens and Permanent Residents: S$30,000
  • Foreigners: S$60,000

Note: The minimum annual income requirement may vary among banks and loan types.

Employment Status

Having stable employment and a steady source of income are crucial factors in determining your eligibility for an urgent loan. Banks will typically require:

• Proof of employment and income, such as recent payslips
• CPF contribution history; or
• Income tax returns

Self-employed individuals and commission-based workers will need to provide additional documentation to prove their income stability.

Credit Score and Credit History Requirement

A good credit score and a clean credit history are essential for securing an urgent loan in Singapore. Banks assess your creditworthiness based on your credit score. Poor credit scores or a history of defaults, late payments, or bankruptcy can hinder your chances of obtaining an urgent loan.

That said, before applying, it is advisable to review your credit report and credit rating and address any discrepancies or negative items.

Collateral Requirements

Most urgent loans, such as personal loans, payday loans, or credit card cash advances do not require collateral. However, if you are taking out a secured loan, you will need collateral which may include assets, such as property, vehicles, or investments that the bank can seize in the event of default.

Secured loans may offer lower interest rates and higher loan amounts compared to unsecured loans, but they also carry the risk of losing your collateral if you fail to repay the loan.

Application Process for Urgent Loans (Banks)

Here’s a breakdown of the steps involved in the application process for urgent loans at banks in Singapore:

1. Research on Loan Providers and Their Requirements

First of all, before you start enquiring with different banks, it’s advisable to start by researching various banks and financial institutions that offer urgent loans in Singapore. Compare their loan products, interest rates, fees, and eligibility requirements to find the best option for your needs.

2. Gathering of Necessary Documents

Now that you have set your eyes on a suitable loan provider, gather all the necessary documents required for the application process. The basic requirements may include:

• Proof of identity (NRIC or passport for foreigners)
• Proof of employment and income, such as payslips, CPF contribution history, or income tax returns
• If you are applying for a secured loan, you will need to present documentation related to any collateral you may be offering.
• For self-employed individuals or commission-based workers, additional documents may be required to substantiate your income stability.

Note that document requirements may vary per bank or financial institution. As such, it is best to gather all the necessary documents before applying to avoid delays.

3. Filling Out the Application Form

Today, you can apply from the comfort of your own home by simply logging into the bank’s official website. From there, you can apply online. Simply fill out the loan application form or you can apply using your SingPass credentials and the application form will be pre-filled.

Be sure to provide accurate and complete information, as any discrepancies may lead to delays or rejection of your application.

4. Submission of Application and Wait Time for Approval

Submit your completed application form along with the required documents to the bank. Since most banks in Singapore now offer online application options, this can expedite the process and save time.

You will need to wait for the bank to review and approve your loan request. The approval process will vary depending on the bank and the complexity of your application, but urgent loans are generally processed faster than traditional loans.

Tips for Getting Approved for Urgent Loans

• Ensuring All Required Documents are Complete and Accurate: Double-check all your documentation before submitting your application. Ensure that all forms are filled out completely and accurately and that you’ve provided all necessary supporting documents.

• Maintaining a Good Credit Score: Make timely repayments on existing loans and credit cards, keep your credit utilization low, and avoid applying for multiple loans within a short period.
• Showing Proof of Stable Income: Banks want to see that you have a stable income to ensure that you can repay the loan. Provide recent payslips, CPF contribution history, or income tax returns to demonstrate your income stability.
• Providing Collateral, if Possible: Collateral, such as property or vehicle, can improve your chances of approval, especially if you have a poor credit score or are seeking a larger loan amount.

Choosing the Right Bank for Urgent Loans

Conclusion

Urgent cash loans in Singapore can provide instant cash relief when you’re facing financial emergencies. However, urgent loans are not created equal. As such, you must carefully consider your options and choose a loan provider that best meets your unique needs.

Here is a quick recap for getting an urgent loan from banks in Singapore:

• Research loan providers and their requirements to identify the best option for your needs.
• Gather all necessary documents, ensuring they are complete and accurate.
• Fill out the loan application form with your personal and financial information.
• Submit your application and wait for the bank’s approval and disbursement of funds.

Quickly and conveniently compare urgent loan packages from the top banks in Singapore with a tap of a button. Loan Advisor is a one-stop loan comparison platform that offers biased-free information about the best loan packages. Request up to three loan quotes from top licensed moneylenders today!