Emergencies strike when they are least expected and can happen to anyone! Whether it is a medical issue or a car breakdown, chances are there are moments in life that require instant cash to address it. If such a situation arises, it’s worth considering where you can get quick cash. There are a number of immediate financing options available that you can use. One of the common options is the instant online loan in Singapore. Keep reading as we dig deeper and explain how it works.

What is an Instant Online Loan?

This type of credit is approved fast and money is deposited into the client’s account. An instant online loan is like a personal loan because it is also unsecured and does not require a guarantee. The money is sent to the borrower’s account directly with repayments made in installments. However, the exact borrowing terms and procedures differ slightly since the application is done online.

To apply for instant online loans in Singapore, you need to identify banks that support this type of credit. Be sure you meet all the application requirements. For example, most banks require applicants to be aged between 21 and 65. Also, they need to have a proven and stable source of income. Once the instant online loan is approved, the cash will be sent to your account.

How to Differentiate Instant Online Loans from Ah Longs / Loan Sharks

Because the loans are offered online, you need to be aware of the dangers of ah longs (illegal lenders). So, how do you differentiate between genuine loan providers and loan sharks? Here are some useful tips.

  • Genuine online financial institutions abide by the law in Singapore. Loan sharks don’t. If you are suspicious about a certain loan provider, conduct an online search (both the company and their business should be registered).

  • Unlike financial institutions that are very straightforward about loan terms and agreements, loan sharks are not. You may see very low interest rates, but they will not provide loan agreements to avoid revealing their hidden charges. If you find a loan provider who does not provide borrowers with loan agreements, they are likely a loan shark.

  • Most loan sharks insist on closing their deals by phone or online. However, every loan provider is required to carry out due diligence on clients, including a face-to-face meeting. Therefore, if you see a loan provider who does not insist on due diligence, they are most likely loan sharks.

Six Ways You Can Use Instant Online Loans in Singapore

As the negative impact of the COVID-19 pandemic continues to be felt around the world, it can be challenging to address financial emergencies. The good thing about instant online loans in Singapore is that you can use the cash for individual purposes, such as:

  • Medical emergencies

  • Unexpected costs

  • Car repairs

  • Funeral costs

  • Home repairs

  • Holiday expanses

Advantages of Using Instant Online Loans in Singapore

The main advantage of using instant online loans is that they are processed quickly. Unlike mortgages or car loans, which can take weeks or months, instant loans can be processed in a few hours or days. Other advantages include:

Use the Money as You Wish

Instant online loans do not come attached with multiple regulations on how to use them. Just like the traditional personal loans in Singapore, instant loans are flexible and you can use them to rectify any problems you have.

Simple Application Process

To make it easy for borrowers to access instant online loans in Singapore, most financial institutions have simplified the process. As long as you have all the required documents, the application can be completed in a short amount of time. Be sure to check the financial institution’s requirements before applying.

Improve Your Credit Score

Short instant online loans are a great way to improve your credit score. They have short timeframes and can be paid off quickly. To make the process of improving your score even more effective, consider maintaining a good credit mix and get your credit report to correct any errors.

While instant loans have many benefits, the approved amount is usually small. Banks usually approve higher amounts for mortgages and car loans in comparison to instant loans.

Common Mistakes When Applying for Instant Online Loans in Singapore

There are a few key mistakes to watch out for when applying for instant online loans in Singapore:

Failing To Check If You Can Repay The Loan

When you take instant online loans, they are like any other type of credit and defaulting on them can have serious implications. Therefore, you must have a repayment plan in mind. If you end up defaulting, your credit score will be damaged and the chances of getting future loans will be very low. The financial institutions that agree to lend you money will likely charge high interest rates.

Borrowing Money from Loan Sharks

Loan sharks have very high interest rates and can resort to less-than-friendly methods when repayments are due. Therefore, you should use trusted loan comparison sites, such as Lendela, as they only deal with legitimate banks and financial institutions.

Not Factoring Other Debts

When applying for an instant online loan, you must factor in other debts into your monthly budget. For example, do you have a mortgage or student loan? If you fail to take these additional obligations into account, there is a risk of payments going over 35% of your income, which is the recommended level. If your budget is very tight, think of some items that can be expunged.

Thinking Unsecured Loans Don't Have Significant Impact

This is a common perception but a serious mistake as it makes people not take repayments seriously. Although instant online loans are unsecured and defaulting will not result in assets being seized, the damage caused can still be severe, most noticeably to your credit score.

Apply for Instant Online Loan In Singapore through Lendela

The best way to apply for any type of loan is through Lendela. Our loan comparison service provides Singaporeans with a simpler and more efficient method of applying for instant online loans.

Lendela works with a trusted list of banks and financial institutions in Singapore to ensure that clients using our platform do not fall victim to loan sharks. In addition, we help match loan applicants with potential banks and financial institutions. As a result, the approval rate of applications made through Lendela is high. In addition, the loan application process is incredibly quick!

Here is a demonstration of how Lendela works, in five steps:

  1. Visit Lendela’s website to submit a short application.

  2. The application is forwarded to different banks and financial institutions and they return with pre-approved offers.

  3. Review the offers and select the one with the best terms and conditions.

  4. Book an appointment with the bank through Lendela for the loan to be signed.

  5. The money is sent to your account immediately.

As you can see, getting urgent loans in Singapore is much simpler. If you have an emergency, many loan providers are willing to lend you cash. To ensure you select the right bank or financial institution, along with the best loan, make sure to use Lendela.

Key Takeaways

  • Instant online loans are unsecured and can be applied online with cash released directly to your bank account.

  • Borrowers can use the money as they wish.

  • Pay extra attention to unreliable ah longs/ loan sharks.

  • Spend time re-examining your budget, credit score, and debt situation before applying for an instant online loan in Singapore.

  • Select the right lender with a trustworthy loan comparison site like Lendela.