Having an emergency that requires more funds than you have on hand can be distressful. But it is not just an emergency that can push you into a tight corner. Imagine getting a unique piece of an art collection that you have been looking for over the years, but the cash at hand is not enough. A fast approval loan in Singapore would come in handy at that point. Read on and see all that you need to know about fast approval loans. We will also walk you through the reason why it is a better idea to apply through a loan comparison site.
What is a Fast Approval Loan?
As the name suggests, this is a form of credit that is approved fast with cash released promptly, meaning that you can quickly address the need at hand. It is a form of unsecured loan because it does not need collateral for approval. When you apply for a fast approval loan, most banks in Singapore check the following information about you:
Your credit score: This is a score measuring your creditworthiness, and banks use it to determine the amount they can approve for you and at what interest. If you have a higher score, banks will be willing to approve higher loan amounts at lower interest rates.
Repayment capability: How well can you repay the fast approval loan in Singapore? To determine this, banks check your monthly income and previous repayment history.
Other debt obligations: If you have multiple debts, such as credit cards, mortgages and student loans, banks might be worried about your ability to repay a new line of credit. Therefore, they are more likely to decline your application or approve a lower amount.
Remember that different banks have various requirements for loan applications, from required documents and approval time to the maximum loan amount and even interest rates.
When to Go for Fast Approval Loans in Singapore
Now that you know what fast approval loans are and how they work, the next question might be, "What instances warrant the use of this type of credit?" If you get yourself in any of the following situations, do not hesitate to get a short-term loan:
Car Breakdowns
Cars are crucial assets that allow us to commune, travel around and even start a business. This is one item that you do not want to get grounded because of insufficient funds. Whether the engine requires an overhaul or the gearbox has a problem, you should not hesitate to use a fast approval loan in Singapore to get it fixed.
Medical Emergencies
The ideal way to handle an emergency is using the family emergency kit. However, there are instances when people do not have the kitty or the funds have been exhausted. In such cases, taking a fast approval loan in Singapore is an excellent idea. With quick access to funds, you can react as soon as possible to ensure you or your loved ones receive timely medical care.
Make a Purchase that Cannot Wait
If you decide to buy an asset, but your paycheck or savings on hand is not enough at the moment, getting an urgent loan can help fill the gap. The bank gives you the cash to buy the item of choice and repayment is done in instalments or the next payday.
To Clear Urgent Bills
Think of a situation where you need to clear bills, be they heating or gas-related costs, but do not have ample cash for it. Paying such bills promptly means that you do not risk getting penalised for late payments and will not get reported to the credit bureaus. The lovely thing about the fast approval loans is that the money is released fast for you to clear the bills.
To Help Family or Friends in Need
Have you ever received a call from a family member or friend who needed urgent help from you? It might be a student studying abroad or a significant other stuck in a different state. If you do not have the cash to help, the stress of knowing that a loved one is stuck in trouble can be very distressful. Instead of simply waiting for the payday, you can get a fast approval loan to get your loved ones out of trouble.
Things to Consider when Looking for Fast Approval Loans
When in need of urgent cash, there is a tendency to skip a lot of details. However, you need to stay focused to ensure you get the highest value for money. So, here are a number of things to consider when looking for fast approval loans in Singapore:
How the Money Will Be Used
Since you are looking for funds to address an emergency, the money should be directed towards that need. Because cash is released into personal accounts, some people are tempted to direct it to different uses, but this is a bad idea. It is also a good thing to only borrow what is enough because the more you borrow, the higher the cost of the credit.
The Interest Rate
The interest attached to a loan is the cost of credit. Therefore, you should target getting the loan with the lowest interest rates. Note that interest rates can be categorised into the advertised interest rate and annualised percentage rate (APR). The advertised interest rate is used for calculating the monthly payments, but this can be deceptive because it does not capture additional charges, such as processing charges, associated with the loan. This is where the annualised percentage rate (APR) comes into play.
APR captures the advertised interest rates, administration charges, and all other fees associated with the loan. Therefore, you are able to get the actual cost of credit. To make the process of calculating the interest easier, consider using a loan calculator in Singapore.
The Loan Term
One of the conditions outlined in a loan agreement is the repayment period or loan term. When considering the loan terms, the shorter it is, the better because you are able to clear the loan fast and get out of debt. However, shorter loan terms might require you to make large monthly payments, raising the risk of suffering major disruptions on your finances. Although taking a longer repaying period is likely to attract lower monthly instalments, the amount payable at the end of the term will be pretty high. Therefore, it will be a good idea to strike the right balance so that you can conveniently pay the fast approval loan plus others, if any.
How soon will the Funds Hit Your Account?
If the situation at hand demands that funds are accessed urgently, look for banks who can approve the loan in a short time, perhaps in a few days. You can learn this from the banks’ terms and conditions for various loans.
How Prepared are you to repay the Loan?
Although you are in a situation that requires urgent cash, it is prudent to appreciate that the loan will need to be repaid in full. This is why you should first think about how the credit will be repaid. So, take some moment to revisit your budget and see how much money can be committed to repaying the loan. If the budget is tight, it will be a good idea to cut down on some costs, especially those related to luxuries. For example, you can opt to use public transport to and from work for three days of the week and direct the funds that would have been used to buy gas into paying the loan.
How to Apply for Fast Approval Loans
Although some banks indicate that the process of fast approval loans in Singapore is easy, borrowers still find it challenging. They are required to provide a long list of documents and do not have a guarantee for loan approval. This is why you need to use loan comparison sites, and a good example is Lendela.
Lendela works with a long list of banks and financial institutions in Singapore, meaning that you are sure of avoiding loan sharks when applying for loans via our platform. Further, we use loan matching programs that ensure that applications are directed to banks and financial institutions likely to approve the loan applications. This is the reason why most people who apply for loans through Lendela get them approved. Other advantages of using Lendela for fast approval loans in Singapore are:
Fast loan approval
The process of approval is short
Lendela is a legit, independent and transparent comparison service with your best interest in mind
You get professional help when comparing
To use Lendela to submit applications for fast approval loans, all you need is to visit our site. After submitting a short application, it is forwarded to multiple banks and financial institutions, who return with their pre-approved offers. Then, you compare your options, pick the best and sign the loan agreement in the bank's office. The cash would then be released to your account.
Fast approval loans in Singapore can be the helping hand to get you out of trouble when an emergency strikes or situations that need prompt cash to arise. Remember that once the loan is approved, the next step is repaying it in line with the signed agreement. If you repay the loan fast, it will also come in handy in building a positive credit history and improving your credit score.
Key Takeaways
Fast approval loans in Singapore are unsecured and helpful options for urgent uses, with banks releasing cash promptly to the applicant.
Most banks in Singapore go through the borrower’s credit score, repayment ability, and other debt obligations to determine eligibility.
Consider loan terms, interest rates, purposes, and loan releasing schedule before applying for a fast approval loan in Singapore
