Uncertainties continue to go beyond what is expected in the middle of the Coronavirus crisis. People cope to survive each day locked inside without knowing what is coming next.
Since the advent of the pandemic, the speed of the economic recovery recedes. It comes as spending patterns, trade and retail, business travel, and working from home have impacted the industry.
In every household, it’s likely families have adjusted most of their spending to acquire basic needs. There may be some who have been stranded overseas due to lockdown restrictions, who have also lost jobs as companies made significant redundancies.
During this situation, everyone is challenged to keep going mentally and financially. And times like these, money lenders are your savior.
What is an Urgent Loan?
Also called emergency loans, urgent loan Singapore are the ones that can be approved quickly. As life doesn’t always go according to plan, this type of borrowing caters to people who are in need of help in covering unexpected expenses in different situations. Licensed money lenders can accommodate:
- Medical and health expenses. Accidents happen, which may include failing to apply for medical insurance. A cash loan in Singapore can be used for procedures to minimize financial stress.
- Natural disasters. As tragedies like it are unpredictable, a cash loan Singapore can be done for this immediately.
- Funeral costs. Losing a loved one is already terrible and the amount of money you have to spend on it could cost a fortune. For instance, like such, access to urgent funds may help ease the situation.
- Personal events. When mounting an expensive gathering, like debuts, weddings, anniversaries, applying for fast cash loans can always be an option.
- Unexpected job loss. During this crisis, borrowing is essential for the unemployed to make ends meet.
- House and car repairs. Even if you have your coverage, pay-outs for these scenarios can be slow.
- School expenses. With children being required to attend activities and other responsibilities outside the home, this can help support parents who are tight on the budget.
- Unpaid bills. Although it’s discouraged to miss payments, an urgent loan can also be used for this situation. However, it’s best to keep a good score to avoid debt.
What Are the Types of Urgent Loans?
Like many other things, urgent loans come in various types. This implies there is a particular package that is made depending on what you need to get.
1. Personal Loans
Best personal loan Singapore allows you to borrow a fixed loan amount of money over a fixed term, usually at a fixed interest rate. Repayment services can be spread out over a period of time, depending on the terms and conditions of your loan contract, interest rate, monthly salary, processing fees, and repayment capabilities
2. Business Loans
It may not be usually considered an urgent loan, but amid COVID-19 pandemic, Singapore companies, like the economy, go through various phases, depending on the market state. It can prosper, recess, depress, and recover. In the wake of the pandemic, it’s hard to keep businesses afloat.
3. Payday Loans
Financial emergencies are inevitable and a payday loan is more affordable than using your credit card to pay your sudden expenses.
4. Credit Card Advance Loans
It’s an amount of cash borrowed upon your credit limit, like withdrawing money from the ATM with your debit card, but the bills come from your credit limit rather than your bank account balance.
5. Pawnshop Loans
This involves taking in something you own with great value to a pawnbroker. If he is interested, he will offer you a loan, then keep your item until you repay the credit.
6. Foreigner Loans
Living away from home can be costly. From renting a place to paying the electricity to sending money you’ve earned for your family and making sure you can still have enough until your next salary. This is essential for those grappling with their income.
Why Consider Getting an Urgent Loan?
If you’re currently struggling from the scenarios stated earlier, here are the things that will possibly convince you to get a cash loan. If you’re thinking too much about bad credit, this is a list you can check to guarantee there is nothing to worry about. Consider the following:
- Fast approval. As urgent loans are instant and for emergency purposes, you can quickly get what you have applied for. More often than not, you can easily have your loan approved after thirty minutes.
- Low-interest rates. Legal money lenders followed all relevant laws under the Moneylenders Act. In that way, it’s assured that borrowers can get fair and low-interest rates without worrying.
- Few requirements. Unlike bigger cash loans and other financial deals by lenders, the urgent ones can provide service with enough information from your personal documents- which we have also shared below.
How to Choose the Best Urgent Loan?
Choosing what is best also means deciding what is right. Before you even think of purchasing tools for your damaged vehicle or get the fast cash from the bank so you can pay for your rent, here are few things you can reflect on first:
- Loanable amount. Always stick to what you can afford to pay. Understand that what you borrow should always be returned. This is important in avoiding mortgages and keeping an excellent credit score. If you miss your dues today, it will easily affect your record tomorrow.
- Repayment period. Upon your loan application, don’t forget to take note of the duration you will have. Consider a flexible time frame that best suits your budget and the likelihood of you successfully meeting your bills. Keep in mind the process you’re going to choose can always put you at risk. Being on time is urged.
- Interest rates. If you need urgent money, it’s encouraged to double-check. Depending on the type of loan you’re seeking, interests could vary. For credit card advances, there’s no grace period, which means the interest starts accruing immediately. Unsecured short-term loans normally come with higher interest rates and fees than secured loans. Should you have an excellent credit score, there is a chance you could pay off your balance interest-free.
- Charges and fees. Choosing the right loan for you wouldn’t be easy, unlike monthly instalments. Don’t be complacent because there are inevitable charges and fees from banks that could add up to the cost of your borrowing.
- Reviews and overall reputation. Take it from the experts – and by that, we meant actual customers. Clients’ experiences could be key factors for this matter. The goal is to find and trust licensed moneylenders that have been in the industry longer than usual. Everyone should be given the same opportunities to access proper financial guidance.
Eligibility & Requirements
Qualifications are always a must. As we’ve run down the ‘to-do’s’ should you need urgent cash, below is a checklist to know when you’re finally good to go.
- The minimum age limit to apply for an urgent loan in Singapore should be 18 years old (some lenders require 21 years old), with a maximum that could go up to salaried employees that are aged 60 and 65 at the time of loan maturity. (This may vary.)
- In Singapore, with a minimum salary of SGD1,500 for citizens and permanent residents and SGD2,000 for foreigners, you can borrow up to six months’ worth of your income.
|Borrower’s annual income||Singapore Citizens and Permanent Residents||Foreigners residing in Singapore|
|Less than $10,000||$3,000||$500|
|At least $10,000 and less than $20,000||$3,000||$3,000|
|At least $20,000||6 times monthly income||6 times monthly income|
- An identification card
- Proof of residence in Singapore
- Proof of employment in Singapore
- SingPass (To login into the CPF, HDB, IRAS websites) Note: All citizens, permanent residents, pass holders, and selected work permit holders are eligible for SingPass.
Steps to apply
- Apply online to receive 3 quotes for your loan request.
- Choose the best money lender and visit the office for a consultation to create a customized plan that fits your needs and repayment capabilities.
- Finalize your loan plan upon agreeing on terms, including payments, permitted fees, and other charges by the moneylender.
- Receive the cash instantly after signing the contract.
What to Keep in Mind After Receiving the Loan
After receiving the loan, make sure the moneylender delivers to you the correct principal amount of the loan. Keep in mind that the moneylender is only permitted an upfront deduction of a loan approval fee of up to 10% of the principal amount.
Needless to say, you must pay the loan installments on time to avoid incurring late payment fees and late interest. Make sure the moneylender issues you a receipt every time you make any repayment towards your loan, and check it for correctness (e.g. name, amount, date).
Lastly, you should retain all statements of accounts and receipts of payments, as documentation and evidence of payments.
As you experience financial difficulties, there could be a ton of ways to get through it. In situations like this, it’s best to consider getting help from a licensed moneylender.
Again, do not borrow from unlicensed moneylenders to avoid loan sharks and harassment. Verify that a moneylender is licensed by checking the list of licensed moneylenders. Click here to access the list of licensed moneylenders.
If you need an urgent loan today, you may use loan comparison sites to sift through the best interest rates today and also consider moneylenders near you so you can easily and quickly sign the contract and get your money.