Personal loans can be helpful for those who meet with unexpected situations and need to acquire a relatively large amount of cash in a short period of time through legal means.
While some licensed money lenders offer you, the borrower, only either daily or weekly repayment loans, you have to bear in mind the potential challenges associated with such repayment loans, especially if you earn a monthly income. Typically, it would be wiser for someone with a monthly inflow of cash to take on monthly repayment loans.
Below are a few key benefits of monthly repayment loans.
Key Advantages of Monthly Repayment Loans
When you want to take out a loan, you should also consider the type of repayment scheme associated with the said loan. For most people, monthly repayment loans are the best option and the following are some reasons why!
Most monthly repayment loans from licensed private money lenders in Singapore are unsecured loans, meaning your loan is not based on collaterals in your possession. Monthly loans are hence more realistic and manageable especially if you do not possess enough to offer as collateral to cover your loan.
If you earn a monthly income and get your paycheck on a specific day each month, it makes it easier to plan your monthly repayment date according to your payday. Compared to daily or weekly repayment loans, opting for a monthly repayment loan will significantly reduce the financial burden and stress of worrying if you have enough to make the next repayment or how you are going to get the money for the next repayment.
Easy application and approval process
The application and approval process for monthly loans is relatively faster and easier than other types of loans. This is especially so if you opt for services offered by licensed private money lenders compared to large financial institutions in Singapore. However, before you go ahead and apply for monthly repayment loans, do find out more about the eligibility criteria for taking up such loans.
Requirements for monthly loans
To be eligible to take up a monthly repayment loan in Singapore, you must meet the below requirements.
- Be a Singaporean, permanent resident, or a foreigner working in Singapore
- Be older than 21 years of age
- Maintain regular employment or source of income
When applying for a monthly loan, these are the documents you will need to prepare beforehand.
- Original NRIC document
- Income tax returns from the last 15 months or if self-employed, income tax returns from the last 2 years
- 3 months of latest available payslips as proof of income and employment
- Employment pass (if you are a foreigner working in Singapore)
If you are eligible for a monthly loan and have prepared the necessary documents for your application, getting a monthly loan should not pose a problem. Once your application for a loan has been approved, do take the necessary steps to ensure that you do not default on your repayments lest be charged extra for defaulting on the repayment.