How to apply for an urgent loan in Singapore
5 min read
Table of contents
- An urgent loan in Singapore funds individuals to cover emergency financial shortfalls.
- The advantages of taking out an urgent loan include easy application, higher approval rates, repayment in instalments, building positive credit history, and having no collateral attached.
- Beware of over-borrowing. In case you find yourself overwhelmed with multiple debts, you can opt to consolidate them into one with a debt consolidation loan.
- There are three main options for urgent loans: personal loans, payday loans, and credit card loans.
- Lendela allows you to get the best urgent loan in Singapore while avoiding the risk of unlicensed lending and hidden fees.
Urgent cash needs can push people into comparing speed first and suitability second.
This guide is meant to help you slow that down just enough to choose the right route: what urgent borrowing usually means in Singapore, when a structured instalment loan fits, when a smaller cash option may be enough, and what to check before accepting any offer.
What is an urgent loan?
Essentially, an urgent loan in Singapore is a form of short-term loan that helps people to access the funds they need urgently. Even if you might qualify for other types of loans, such as traditional loans, they may not be the best option in the event of an emergency because they take a long time to process.
Short-term loans are unsecured forms of credit, implying that you do not need collateral to get them approved. Many banks and financial institutions mainly check your credit score to determine your creditworthiness and the ability to repay. Once approved and the loan agreement signed, the funds are sent to your account.
Advantages of urgent loans in Singapore
Now that we are clear about what urgent loans are, what are the benefits of using them? Here are a few of the advantages that you should anticipate for using urgent loans in Singapore.
Easy application | Higher approval rates | Repay loan in instalments | Build positive credit history | No collateral |
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Common reasons why people get urgent loans in Singapore
The most common emergency in Singapore that calls for urgent loans is medical situations. For example, if your family member is involved in an accident, an urgent loan can be of great financial aid. Other reasons why people opt for short-term loans include:
When urgent cash is needed to clear bills but the payday is still some weeks, days, or months away
When a person wants to buy an item that cannot wait until the next payday
When you want to access money urgently but do not intend to follow the lengthy process of applying for traditional loans
When the credit score is poor, and you want to increase the chances of getting the loan approved
What are your options for urgent loans?
Not every urgent cash need requires the same product. A better way to choose is to start with the amount you need, how fast you need it, and whether you can handle fixed monthly repayments over the chosen tenure.
Personal loans | Payday loans | Credit card loans |
A personal loan is borrowed from a bank, credit union, or online financial institution for personal use. Once approved, the money is deposited into the borrower's account and repaid in instalments. A personal loan is unsecured, so your assets will not be at risk if you are unable to repay. Since you are free to use personal loans as you prefer, it is an excellent option for addressing emergencies. It is also approved fast, especially when working with loan comparison sites, such as Lendela. | A payday loan is a short-term loan that requires you to repay the money in full during the next payday. Unlike other types of loans, such as personal loans or renovation loans that allow payment in instalments, payday has to be cleared in full. Loan providers are more stringent when approving payday loans to ensure that only what clients can afford is approved. | A credit card advance loan allows you to access cash urgently on your credit card in case you want to make a purchase where a credit card is not supported. The credit card provider will attach interest to the loan and a further processing fee. Note that credit card advance loans in Singapore attract higher interest rates compared to traditional loans. The interest rate will start to accumulate the moment you withdraw the cash. |
Things to factor when applying for urgent loans
When applying for an urgent loan in Singapore, you want to check the finer details carefully as you do not want to end up with an expensive loan with a high-interest rate or unfavourable terms and conditions. To break it down, here are the main factors to consider:
The total amount that you need for the emergency at hand – don’t “over-borrow”
The interest on the loan
Loan term
Credit score
Personal income
Other debts that you are servicing
Choose the right next step
Need a structured instalment plan and a larger amount? Go to quick loan in Singapore.
Need a smaller urgent cash option? Go to cash loan in Singapore.
Want the standard personal loan explainer first? Go to personal loans in Singapore.
Rejected and not sure what to do next? Read our rejection recovery guide.
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