At some point in time, you might be thinking about whether you need to approach a licensed moneylender for a fast personal loan or maybe a payday loan. In this moment, you might not be aware of what you will be getting yourself into since you aren’t familiar with the entire loan processes and complications involved.
One thing to note is that there are distinctions between a payday loan and personal loan. The unsecured loans from banks are different and are classified as a secured loan.
The licensed moneylenders are different from banks since they are less stringent and a lot lenient in comparison. For potential borrowers, it is necessary for you to do some research concerning the workings of the loan processing and what the requirements are expected. It’s necessary that you do some necessary homework prior to getting into anything and especially anything revolving around monetary issues.
Recently, there has been a rise in lending from a licensed moneylender. Thus before jumping onto the bandwagon and begin applying for loans, you need to know which loan is suitable for your situation.
It’s easy to get a loan but you need to recognize the high interests being offered by the moneylenders. You need to consider your ability to repay and your key reason for getting a loan. You will need to consider all the options available to you, know the workings of banks and other moneylenders. Also, know what you will use the funds for so as to help align you better with what you need to apply for.
What’s A Payday Loan
As the name implies, the payday is a loan type that you repay once you get your subsequent paycheck. You will get an approval, and often within hours. Thus will have a small cash amount to spend at once, when you find yourself in a dire situation and are not able to await the bank’s approval on your loan. This might be the ideal loan type for you when you need some quick cash.
Then again, although it may seem easy to access, there are few complications that need to be considered before getting this type of loan. The most noteworthy thing is the interests are bound to be higher compared to banks since the moneylenders are lenient in approving your loan and credit rating wouldn’t be a factor to think about when issuing the loans.
Therefore, you, in essence, are paying for the convenience and fast approval that comes with getting a payday loan. that’s why you will be paying a high premium.
What You Should Look For
Given that you do not have other alternatives for getting extra funds, you could consider looking for a licensed moneylender in Singapore. Always ensure that before signing yourself up, be sure you know all conditions and terms and conditions.
Know about the interests rates, the period of repayment and etc. also keep this in mind to help you avoid approaching a bogus lending company. Neither will you want to work with a money lender who is not accredited aka loan sharks.
Ensure you take the time to carry out some thorough research by comparing loans from different lenders in order to make sure you are working with a trustworthy local money lender.
Please do find out about the type of loan that is most suitable and will also cater to your financial needs. Don’t assume that every type of loan works the same way.
Is This A Long-Term Borrowing Approach
It’s not wise and you shouldn’t consider taking loans as a long-term approach. The main objective of taking out a loan is for reducing your financial loads while making money to help clear your debts.
Do not pile up your debts, thinking that it’s the perfect way to live your life. Taking out loans throughout your entire life is very unhealthy both for you as an individual or even for your family. No one wants to live a life full of uncertainties, endless worries about money troubles all the time. For this reason, accessing a loan from certified moneylender is a temporary short-time solution that you should consider particularly for emergency as well as dire situations.
Try not to get stuck in the endless cycle of getting any personal and payday loans. When you have long-term money problems, you could consider approaching the Singaporean government for assistance.
Many governmental initiatives were introduced to assist families in either short or long term, assisting your children to pursue their education since it’s essential for their future lives. Remember that you should never compromise your children’s education with your financial status.
What You Need
For you to be able to access the payday loan you do need some type of identification like the IC/driver’s license, statement proving your monthly salary. This is usually what you will need to present during the application process for this loan type.
Most moneylenders will quickly look through your credit rating and then make a basic inquiry regarding your average income. Provided that you are able to pay back the loan, and within the given time they have set for repayment, you will most likely be approved for the loan amount you wish to take out. Approval for payday loans is typically done within several hours after applying for the loan.
Know The Loan Conditions
For potential borrowers, you have a part to play; it’s your responsibility to step up. Ensure that you carry out some thorough research to help you find out all the necessary information that you got to know about getting loans from accredited moneylenders.
Ensure you are very clear about interest rates, the repayment conditions and terms and conditions as well as the loan limit before you apply for the loan. Be sure you understand what you are getting yourself into and especially the moneylenders you wish to work with.
Ensure you confirm whether the moneylender is legitimate and authorized by the Singaporean Law Ministry (MLAW). At present there have been many loan sharks scam out there, abusing other moneylender identities via SMS. Thus be cautious when picking a lender.