The cost of living in Singapore is rather high. Actually, there are several Singaporeans who face financial problems. This is because their wages aren’t enough sometimes. For this reason, they at times get into some difficulties. And mainly when they experience unexpected expenses they need to pay for. But lack the money to do so.
Asking your family for help may seem convenient to do. But admittedly they have their own expenses to deal with. It’s, for this reason, it isn’t always ideal borrowing some money from them. More so if you would like to get a bigger amount.
What Payday Loan is About
This loan type is intended to help you cope until the following payday. Also, it’s not a big amount but it will be enough for your urgent and basic needs. The payday loan is the easiest loan type for you to access.
This loan type is issued by loan advisor. Because of their less stringent processes and requirements that accompany it. That’s why Singaporeans who require extra cash consider a payday loan. This is because it involves a seamless process.
Advantages of a Payday Loan
This loan type allows you to meet all the basic needs. Even as you are dealing with some financial concerns. Therefore, for payment of utility bills and additional needs, the payday loan is ideal. You need to note that payday loans are only for short-term needs.
The application process for payday loans is fast and efficient. Also, it requires no extensive paperwork from you. Actually, payday loan companies have online loan application forms. These can be found on their websites. Thus you can simply fill out the forms in a few minutes.
But, there are few verification procedures involved. This may normally be completed at the lender’s office. It’s also a good method to establish the legality of the lender. As you can confirm the legal business operations they hold.
Additionally, you need to confirm if they have a registered landline. This way you can call whenever you have any concerns. Mostly, you will realize the speedy process as you apply for a loan. It could even take an hour for you to get feedback on your application. An hour might the time it takes till your loan request is approved.
Another key benefit is confidentiality offered to their customers. Moneylenders ensure that all your personal information remains private. This will give you the assurance needed as you complete the request form. It is very important. As you wouldn’t all your information wafting around the net. Or have this data being shared with other financial institutions and lenders.
Things to Consider Before Taking Out a Payday Loan
Payday loans are easy to get. However, there are important things to consider before you borrow a loan. The Singaporean government is carrying out ways to protect the citizens. They want to ensure that illegal moneylenders don’t compromise Singaporeans safety. Thus they will be prevented them from doing fraudulent activities. Though, this doesn’t show that their activities have completely been stopped. For this reason, you’ve got to try to research and shop around. For you to find the right lender you’ll be spared from being scammed.
Below are some things you need to look into. Prior to you making use of payday loans from the moneylender.
Carefully Read The Payday Loan Conditions And Terms
Moneylenders often have different rates of interest as well as repayment schedule. Even then, they do follow a standard set by authorities governing moneylenders. Always read carefully the conditions and terms.
Also, ask the legal lenders for an explanation when necessary. In so doing, you will avoid the unscrupulous lenders. These unlicensed lenders are illegally conducting their businesses. And their aim is to get some money from their unsuspecting clients. Therefore, confirm the rates charged on the loans as well.
Pick A Legal Moneylender
Singapore has numerous moneylenders. However, not every one of them is operating legally. Since some of them are without licenses and a physical office. Nonetheless, their activities are continuing.
Thus, it’s important that you confirm the legitimacy of a moneylender. Also, confirm they are doing their adverts for services offered in a legal way. Be sure to stay away from any moneylenders that print advertising or do SMS. This is because these are frequent actions done by illegal moneylenders.
Establish The Amount You Require And The Monthly Installments To Be Made
Ensure that you take out the exact loan amount you actually need. And reconfirm this figure before you hand in your application form. Realize that the principal amount borrowed comes with a given interest.
So keep this in mind when you start to repay the loan. One important thing is that you only borrow the amount you need. This will help you avoid suffering due to the huge fees and interest rates. Also, you will have a specific use for the amount.
Additional Tips To Think About On Payday Loans
Generally, payday loans are easy to take out. The loan requires you to submit a few documents. These documents include proof of your dwelling and an assessment notice. The latter is only applicable to individuals who are self-employed. These documents have to be presented to your lender.
And it’s often during the verification of the information you indicated. That is through your application form. These documents will be evaluated accordingly by the moneylender. This way you can decide the loan amount that can be borrowed. And this is based on the provided information.
Just remember that payday loans are by no means long-term solutions for financial concerns. It is a short-term type of loan and requires no security to access. Therefore you should pay it back in a few weeks time. Do consider your ability to repay the loan before you apply. When you know you won’t manage to repay it. It’s best you don’t get one to begin with. This might truly damage your credit score. And it will give you more pressure as you deal with the reimbursement process.