Most of us don’t give much thought to loans in Singapore until we really need one. So many can fall prey to poor decisions when rushing to borrow money due to lack of research and assessment of their own finances.
But with that said, we understand that sometimes, you just don’t have the time to wait. So how can you get the loan without going through the lengthy process of approval? Well, we have ranked some of the good, bad and better loan options in Singapore.
A Cash Advance, which is also known as a payday loan, is a short-term loan that is usually taken out against your credit card but can also be taken out from some licensed money lenders. These loans are usually for small amounts meant as a cash line just in case you have some unexpected purchases that require a bit more cash then what you budgeted for for the month. All personal loans taken have the same interest rate of 4% per month.
It’s common for Singaporeans to head towards banks for loans, but they require you to fulfil certain criteria before approval, and they also require some time to process your request. A general standard to eligible for a loan is for the borrower to be older than 21 and have an annual income of at least $20,000.
Banks also check your credit scores, and you’ll have to pay a processing fee of 2% to 5% of your loan amount. When considering repayment periods, most banks have a period of approximately 12 months.
Loans from Licensed Moneylenders
Licensed moneylenders are another great way to get take out a personal loan from a reliable source, but with a shorter waiting period than banks. Licensed money lenders in Singapore are a good alternative option to banks if you are not wanting to commit to a long repayment period like banks require you to. The approval process is also faster and can have a quick 24-hour approval period.
If your credit score is an area of concern for you as well, then opting for a licensed money lender in Singapore as they don’t take your credit scores into consideration when approving your loan request.
The Pros & Cons of Each
- A cash advance should be your last resort as you’ll have to pay high interest for withdrawing money. And they charge compound interest per day.
- Banks are governed by the Singapore government and they follow laws to protect borrowers. But the banks take longer to process your loan and have more extensive criteria to meet before approving your loan
- Moneylenders do charge higher interest rates than banks but are a better option when looking for an urgent loan, a loan of a smaller sum or if your credit score is an area of concern for you.
Getting Loans In Singapore
Now that you have a better idea of what loans can serve you better and why we hope that you’ll be more confident when applying for your next loan. If you find yourself in need of urgent cash then you should speak to a licensed money lender in Singapore, or better yet, just give us a call on our hotlines at (+65) 62244746 (Yishun) and (+65) 62244749 (Tampines).