Are you going through a situation that requires immediate cash? If yes, you might want to consider an immediate loan in Singapore. The funds can help you to address the current financial needs because they are released fast. But how does the loan work? Can you get more than $3,000? Dig in and get firsthand information!

How Does Immediate Loan in Singapore Work?

An immediate loan in Singapore is like a personal loan in many aspects. After making an application and it gets approved, the cash is deposited in your account, and you are free to do as you wish with it. Like a personal loan, urgent loans in Singapore are unsecured, meaning that you do not require collateral to get the application approved.

As the name suggests, immediate loans are approved within a short time. Then, the cash is deposited into your account almost instantly so that you can handle the issue at hand immediately. Here are some of the common uses of immediate loans:

  • Car repairs
  • Refinancing debts
  • Unexpected funeral costs
  • Medical emergencies
  • Meeting extra wedding expenses
  • Home repairs
  • Urgent remodels

This list only highlights a few; it can go on. The lovely news is that banks are not interested in determining how you will use the cash. Therefore, you are free to use the cash as you want. However, we must indicate that just like other types of credit, there are so many considerations to factor in before getting the loan. For example, how much can you borrow? Are you able to repay the loan on time?

How Much Can You Borrow for an Immediate Loan in Singapore?

Now, to the big question that many people have been asking, "How much can you borrow? You might also want to know whether immediate cash loans in Singapore are more expensive than credit cards. The total amount that you can get is dependent on a number of factors, including the following:

Your Annual Income

If you have a higher income, it is possible to borrow more. This is because banks base your ability to repay the immediate loan in Singapore on the annual income. The higher the income, the more you can borrow. The reverse is also true when it comes to people with low annual incomes. If the income is low, banks will only approve a small amount for the loan.

Banks and financial institutions in Singapore follow the annual income, but they also set their own limits for individual customers. For example, some banks or financial institutions will be willing to approve a loan up to 5 times or six times the monthly income for a person with annual income of at least $20,000.

Your Credit Score

A credit score is a four-digit number given by the Credit Bureau Singapore (CBS) and is used to highlight the creditworthiness of a borrower. The higher the score, the lower the risk of default and the higher the amount banks can approve. If your score is less than 1723, your application for the immediate loan in Singapore is likely to get rejected, especially by banks. Below is a credit score grading scale and risk of default provided by the Credit Bureau of Singapore (CBS).

To get a high score, you need to ensure that all the debts are paid on time. Other factors that are used to calculate the score include inquiry data, account delinquency data, and recent credit. You should also maintain a good credit mix to enjoy a high credit score.

The lovely thing about the immediate loan in Singapore is that most financial institutions are willing to approve the credit even when the score is not so good. For them, your current ability to repay is more important. This is why you should use loan comparison sites because they send the applications to different loan providers, raising the chances of loan approval.

Other Current Debts

When checking your credit report, banks are not just interested in your overall creditworthiness. In addition, they want to know how many other debts that you are servicing. For example, if you also have a mortgage, a student loan, a personal loan, a renovation loan, and a car loan, banks will be concerned about the ability to service them. Therefore, the amount likely to get approved is low.

Requirements for Immediate Loan in Singapore: Age and Documents

The requirements for immediate loans in Singapore vary based on the bank you are working with. The general terms for the loan are that you need to be 21-70 years to be eligible to apply for the loan. Furthermore, most banks require you to have a minimum of $30,000 per annum. So, if your income is less than $20,000, the chances are that banks will reject the application. Therefore, it will be a better idea to apply for a loan from a financial institution.

If you are a Singaporean, you can only borrow up to $3,000 if the income is less than $20,000 per year. However, those with income of more than $20,000 can be able to borrow up to 6 times their monthly salaries. This is why financial institutions have become the new go-to options for most Singaporeans.

In addition to the age requirement, you also need to have the right documents to get immediate loans in Singapore. Here are the main ones:

  • Income statement
  • Proof of residence
  • NRIC
  • Credit report (the bank gets this directly from the credit bureaus)

What if the Immediate Loan is Rejected?

When applying for an immediate loan, it is important to appreciate that it is possible to get rejected. Therefore, it is a good idea to have some alternatives in mind. Here are some alternatives you might consider:

Consider Taking a Secured Loan

An unsecured loan is always the first choice because approval is fast and does not put your assets at risk. However, a secured loan might be the next go-to option if the immediate loan is not approved. Because the collateral helps to lower the risk, most loan providers, from banks to financial institutions, will be willing to give you cash based on the value of the asset. In such a case, make sure to repay the loan as agreed because defaulting can make the collateral be auctioned.

Use Credit Card Advances

This is another unique method of getting urgent cash, but it involves using credit cards. Credit card advances allow you to take out actual cash. The amount you withdraw is added to the main balance, just like it happens with regular transactions. This implies that if you got an advance of $300, the balance would move up with the same amount. If you get yourself in an emergency, the credit card advance can be pretty useful. However, it comes with a very high interest rate.

Borrow From Family and Friends

Perhaps this is not a very appealing option, but if the immediate loan in Singapore is no longer an option, it might be worth trying. The lovely thing about borrowing from friends is that they are less likely to attach interest to the cash they lend you. However, you need to be careful because borrowing from friends can at times result in damaged relationships. So, make sure to pay up the cash they lent to you as fast as it is viably possible.

How to Apply for an Immediate Loan in Singapore through Lendela

This post has demonstrated that immediate loans in Singapore can be an effective way to meet unexpected emergency costs. Even though the application process from most banks might appear simplified, the required information and supporting documents are still many. In addition, different banks have varying requirements, implying that you will have to do a lot of reviews when targeting a new bank. This can be tiresome, yet it does not raise the chances of getting the loan approved. This is why you should use a loan comparison site such as Lendela.

Lendela is a company that was created to help make loan applications easy. Instead of taking hours, days, or weeks trying to study and fill out loan applications, Lendela reduces that into a few minutes' affair. In addition, we use matching-making algorithms that help identify banks and financial institutions who are likely to approve your specific loan application.

Another unique thing about Lendela is that we only work with banks and financial institutions, all operating under the regulations and laws of Singapore. This means you are sure of sending applications only to the legal loan providers, ultimately avoiding loan sharks completely. See, why risk falling into the hands of loan sharks when Lendela is only a click away? Check the main steps required to apply for an immediate loan in Singapore.

  1. Visit Lendela’s website to submit an application
  2. Get multiple offers from different banks and financial institutions
  3. Compare your options and select the preferred offer
  4. Book an appointment online with the selected bank to sign the loan agreement
  5. Sign the loan agreement, and the money is released to your account

When faced with an urgent need for cash, do not get stressed because many loan providers are willing to come to your rescue by providing the money in a ransom and allowing you to repay in instalments. An immediate loan in Singapore helps you to access the funds quickly, but you need to avoid loan sharks and select the best possible loan with good terms. This is why you should always use a loan comparison site for faster processing, transparent comparison and higher approval rates.