3 Problems You Might Face When Getting a Loan

While some may see taking out loans as a risk, it’s actually just a part of life for many business and individuals in Singapore. It may be a credit card, a fixed-term loan or a line of credit. Often loans are planned, while on other occasions they are needed in an emergency. If loans are used correctly and you choose the right option for your circumstances, they are hugely beneficial and often cost-effective. The best approach is to find monthly instalment loan lenders who are legal money lenders. 

When You’ll Need a Loan

Here are three occasions when you might need a loan.

1. In an emergency

Sadly, one of the most common reasons for needing credit is in an emergency. It may be because you need repairs to your car or home, or a payday loan to see you through until the end of the month.

2. To make a significant purchase

If you are looking to make a substantial purchase such as a new home or car, often the only way of financing this is with a loan.

3. Unexpected expenses

From time to time, we can all be hit by unexpected expenses that can send us off track. It is the same for both individuals and businesses and something that legal money lenders are aware of.

Problems Obtaining Loans

Unfortunately, obtaining a loan isn’t always as straightforward as what we might hope or need. Monthly instalment loan lenders, such as a bank in particular, often require security and a good rating. Other problems that you may encounter include:

1. Being denied by banks

Banks operate within stringent criteria, and if you don’t meet all their requirements, your loan application will likely be refused. Fortunately, it is possible to go to an alternative legal money lender.

2. The quantity of paperwork

Because of the strict rules concerning loans in Singapore, applications can be long and drawn out as well as being complex, making errors easy. Ensuring that the paperwork is completed correctly is vital, but the sheer quantity of paperwork can be off-putting.

3. Costs

Often loans designed for short-term term use such as overdrafts can be costly, especially if they are used for longer than intended. Also, if your credit rating isn’t good; you may also find that some monthly instalment loan lenders charge high levels of interest.

The Different Types of Loan

Bank and money lenders in Singapore offer a range of different types of loan to suit individuals and business and can be tailored to your requirements. Here are four common types of loans:

Overdraft

Overdrafts are commonly offered by banks and are a short-term form of financing designed to bridge a gap.

Fixed-term loans

Fixed terms loans are intended as a longer-term loan and are a fixed amount, payable for a fixed term at an agreed level of interest

Payday loans

Payday loans are short-term and very similar to an overdraft but generally offer by licensed money lenders

Lines of credit (LOC)

A LOC is typically provided to a business and is a maximum amount of money that can be accessed and repaid in full or part at any time.

Where To Get a Loan in Singapore

Here at Fast Money, we provide a range of personal loans, including home loans, car, and short-term payday loans to help you with your situation. We also have a selection of business loans available suited to both small and large organisations. Give us a ring at (+65) 62244746 (Yishun) and (+65) 62244749 (Tampines) if you would like to find out more about obtaining loans in Singapore. If you’ve found this article helpful, do check out our other posts on our blog page!