Are you in need of cash urgently? If you are faced with an emergency but do not have ample cash in your savings account, it can be stressful. However, there is a way out because you can take an urgent loan in Singapore to ease your financial difficulties. Keep reading to learn more about cash loans in Singapore, including how to apply fast.
What is an Urgent Loan?
Now, let’s get into the finer details. 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 are likely to be undesirable in 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.
Special 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 Process
As the name “urgent” suggests, these loans are designed to ensure that applicants can get the cash within the shortest time possible. So, most banks and financial institutions have reduced the paperwork required for the application to ensure that you can complete the process fast. However, the process depends on the loan provider you select. To make the process even simpler and faster, you should always use a loan comparison service.
Higher Approval Rates
Unlike other traditional loans, such as mortgages and student loans in Singapore, urgent loans are normally approved to a higher extent. Because the amounts involved are usually lower compared to most traditional loans, the chances of getting approved are pretty high. Indeed, even persons with poor credit scores can still get the loans approved because the amount involved is low.
You Repay the Loan in Instalments
Once the urgent loan is approved, you get the funds as a ransom and repay in instalments. This implies that your finances will not get significant interruptions because only a small amount of your monthly income goes into serving the debt. However, it is crucial to look at the loan alongside other debts you might be servicing and ensure that the portion of monthly salary used to service them does not surpass 30-35%.
An Excellent Method of Building Positive Credit History
If your credit score is poor and you want to boost it fast, one of the methods is taking up short-term loans. As you repay the loans fast, the details will be reflected on your credit report, helping to push the score higher. Remember to also clear other types of debts alongside the short-term loans and use credit cards diligently to boost the credit score further.
There is No Risk of the Bank Coming for Your Assets
Because urgent loans in Singapore are unsecured, there is no risk of getting your assets auctioned if you cannot repay the loan. Since there is no collateral attached to the loan, the bank relies on your credit score to assess your creditworthiness. However, you should not fail to repay because it is likely to severely harm your credit score, making it difficult for you to access credit in future.
Common Reasons Why People go for Urgent Loans in Singapore
For most people, the commonest emergency that makes them rush for urgent loans is medical situations. For example, if your family member is involved in an accident, an urgent loan in Singapore can help to fix the financial gap. 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 and feels that it cannot wait for the pay-check
- 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 not very good and you want to increase the chances of getting the loan approved
What Options Do You Have When It Comes to Urgent Loans?
Urgent loans can take several forms, and you need to understand them well to make the right choice. Here are the main categories:
- Personal Loans
As the name indicates, this is a loan that is borrowed from a bank, credit union, or online financial institutions for personal use. Once approved, the money is deposited into the borrower's account and repaid in instalments. Unlike other types of credit, such as mortgages and car loans, a personal loan is unsecured, meaning that your assets will not be at risk if you are unable to repay.
Since you are free to use the 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.
- Payday Loans
This is a type of short-term loan in Singapore and you can use it to address urgent cash shortfalls. The payday loan 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.
- Credit Card Loans
A credit card advance loan is another common type of urgent loan in Singapore. The advance 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 commonest method of getting an urgent cash loan using your credit card is borrowing the available balance.
The credit card provider will attach interest to the loan and a further processing fee. One notable thing about credit card advance loans is that they attract higher interest rates compared to traditional loans. The interest rate will start to accumulate the moment you withdraw the cash. Therefore, it will be a good idea to ensure you repay the loan on time to avoid getting deeper into debt.
Things to Factor when Applying for Urgent Loans
When applying for an urgent loan in Singapore, many people are in a hurry and rarely get to check the finer details. This is wrong because you are likely to end up with a very expensive loan. Since the loan will be repaid with interest, you need to ensure that only the one that comes with good terms and conditions is selected. So, here are the main factors to consider:
- The total amount that you need for the emergency at hand – don’t “over-borrow”
- The interest of the loan
- Loan term
- Credit score
- Personal income
- Other debts that you are servicing
Apply for an Urgent Loan through Lendela
Although we have pointed out that short-term loans are easy to apply for, there is one common risk that faces many people in need of urgent cash – falling into the hands of loan sharks. These are unlicensed loan providers and they are known for charging very high-interest rates. Another risk of applying for an urgent loan on your own is the danger of hidden charges. Some loan providers might want to take advantage of your situation and attach so many hidden charges to the loan. The best way to avoid these challenges is using Lendela.
Lendela is a loan comparison site whose primary goal is helping to simplify the process of applying for a loan. We also raise the chances of the loan getting approved by using advanced loan matchmaking algorithms for every application. After submitting the application at Lendela, the system checks for banks and financial institutions ready to service borrowers with profiles like yours. All the offers you get are pre-approved. Here is the process of a loan application with Lendela:
- Visit lendela.com to submit a short online application. This process should take you only a couple of minutes. Then, the application is sent to multiple banks and financial institutions.
- The ones who approve the loan return with their offers. These are pre-approved offers, and if you accept, only your signature and final checks are required for the cash to be released. Review your offers, compare them and select the preferred option.
- Simply book an appointment with the bank for you to sign the loan, and the money is released into your account. Now, you can go ahead and use the funds to address the emergency at hand.
Urgent loans in Singapore can come in handy to help you bridge financial gaps when an emergency that cannot wait happens. Even with urgent loans, it is still crucial to be smart by ensuring you only select the option with good terms and conditions. This is why you should use Lendela because it makes the process faster, helps keep you away from unlicensed lending, and the approved loans have good terms and conditions. Instead of rushing to sell your assets when faced with an emergency, why not use urgent loans in Singapore?