It is hard to predict when you may need some extra cash. Luckily there are numerous sources of fast cash whenever the need arises. Fortunately, Singapore has many sources of credit thus you can compare some of the loan terms ahead of signing a contract.
When an urgent financial need arises, moneylenders are a fast source of funding. Singapore has many legal and licensed moneylenders. You simply need to know the type of payday loan that will work best for you and the terms that are favorable to you.
When To Get Short Term Loans
Whenever you are faced with a financial emergency to solve you are more likely to require a kind of short-term loan. This may be used to deal with all sorts of financial needs like car repairs, medical emergencies, paying off rent or utilities. This can be useful for you if you have a financial shortfall due to some reason.
Everyone will face some tough times every once in a while. Therefore, you should not feel ashamed when seeking financial assistance to a loan advisor whenever you need it. Even then, you should get a loan responsibly. This you can do by ensuring that you only borrow what you need and can repay comfortably.
Where To Get Short-Term Loans In Singapore
In Singapore, there are numerous licensed moneylenders that you can visit for short-term loan services. These legal lenders will offer you fast cash loans through an easy and quick process. Here is a look at several benefits of taking short-term loans from licensed moneylenders in Singapore.
Paperwork for making loan applications can be time-consuming. But, when dealing with moneylenders, the process is stress-free since they ask for basic, minimum documents to help process the loan application.
Fast loan processing
Moneylenders will take as fast as an hour when they are processing short-term loan applications.
As far as making repayments is concerned, the licensed moneylenders will offer you a flexible schedule that will suit your financial requirements.
Since the beginning of October 2015, the licensed moneylenders are to charge a cap of 4% interest a month. This is regardless of the loan type (unsecured or secured) or your income level.
Short-Term Loan Types
Depending on the moneylender you work with, there are many types of short-term loans to choose from;
Instant Cash Loan
From the name, this loan is approved in under a short time, normally within 1 hour. This kind of payday loan is mostly issued to existing customers who have proven to be trustworthy in payments. Also, these are borrowers with guaranteed payment ability. For instance, you can submit a payslip. The rates of interest for this type of loan are high. The set repayment period is normally under 30 days.
The loan amount that will be made available to you for unsecured personal loans will be based on your ability to pay back. To determine this, the lender looks at your income and your credit history as well. Based on what your financial needs are, there are several options for short-term loans. Make sure to shop around for ideal loan terms.
This loan type is for people who are employed. Your salary is what guarantees the loan. The loans are offered for a tenure of 31 days when you receive your salaries. It is the easiest loan type to get since most moneylenders will accept enough proof of your ability to repay such as an employment letter and a recent payslip. This loan is processed within a short period of under an hour.
When unforeseen emergencies crop up. Taking a payday loan that can fit your needs will be helpful. This is because the loan will be authorized and disbursed to your account within a few hours. The payday loan is also known as cash advance loan. This loan type is best more so when you are faced with a financial challenge. Even then you need to fulfill some loan requirements.
The personal loans are provided under varied terms for rates of interest and repayment period. You will be able to negotiate for different loan terms during the application for personal loans. This makes this among the most flexible loan available in the market.
This loan type caters to those with lower income and does not fulfill bank loan requirements. When you cannot fulfill the minimum bank’s income requirements. You will not be able to get the payday loan from them. On the other hand, moneylenders are catering to this group of people however, the loan amount will usually not be that high. The process of application is effortless and approval is just about guaranteed in most cases.
Things To Take Note Of:
- Always ensure that your moneylender holds a valid license to run their lending business. You can confirm this by searching the licensed moneylenders’ list accessible on the Singaporean Law Ministry website.
- Make certain that you are clear about all the contract terms.
- Take into account your salary and other financial commitments before getting the short-term loan. When you know you will not make it to repay the installment in time. You risk incurring a late payment charge and interest costs which can further cause a dent in your finances.
- Only borrow the amount you need. Do not give in to the temptation of taking out more money than what you need to cover your loan cash requirements.
- Request for a loan contract copy from your moneylender. Your lender is bound by law to clarify the contract terms using simple language that you will understand.
- Identify any terms contained in the contract which let your moneylender put a caveat on the proceeds of the sale of your property in case you default. When your moneylender puts a caveat, you are legally bound by law to repay first the outstanding loan to the moneylender ahead of selling your property.
- Get in touch with several moneylenders to help locate the best contract terms. Do not sign a loan contract unless you accept the loan conditions and terms.