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?

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

  • Urgent cash loans are designed for applicants to get cash within the shortest time possible

  • Reduces the paperwork required to speed up the application process

  • More easily

  • approved than traditional loans as the amounts involved are usually smaller

  • Even individuals with mediocre credit scores can still get loans approved

  • Repaying the funds of your urgent loan in instalments means only a small amount of your monthly income goes into serving the debt

  • Less drastic financial impact and interruptions

  • Getting an urgent loan in Singapore can boost your credit score fast, as you repay the loans fast

  • Remember to also clear other debts alongside the short-term loans and use credit cards diligently

  • Urgent loans in Singapore are unsecured, and there is no risk of getting your assets auctioned if you cannot repay the loan.

  • However, failure to make repay could severely harm your credit score and make it difficult for you to access credit in future.

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?

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

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

Apply for an Urgent Loan through Lendela

Although 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 that 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 a host of hidden charges to the loan. With Lendela, you can avoid all these challenges.

Lendela is a loan comparison site whose primary goal is helping to simplify the process of applying for a loan. Partnering exclusively with authorised banks and financial institutions, we help you get loans approved fast 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. The process of loan application with Lendela is simple:

  • Visit and 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 your preferred option.

  • Book an appointment with the bank for you to sign the loan, and the money is released into your account.

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?

Key Takeaways:

  • 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.