Emergencies strike when they are least expected and can happen to anyone! Whether it is a medical issue or a car breakdown, the most important thing is that you need urgent cash to address it. So, if the money at hand is not enough, it might be crucial to think of where you can get quick cash. The good thing is that there are a number of immediate credit options that you can use. One of the common options is the instant online loan in Singapore. Keep reading as we dig deeper and establish how it works.

What is an Instant Online Loan?

This is a type of credit that is approved fast and money deposited into the client’s account. The credit is like a personal loan because it is unsecured, money is sent to your account, and repayment is done in instalments. However, it differs slightly because the application and processing are made online.

To apply for instant online loans in Singapore, you need to identify a banks that supports such a type of credit. Then, check the requirements and ensure you meet all of them. For example, most banks require applicants to be between 21 years and 65 years. Also, they need to have a demonstrable and frequent source of income of a certain amount. Once the instant online loan is approved, the cash is sent to your account in a ransom.

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

Because the loans are offered online, you need to be on the lookout for the danger from ah longs (illegal lending actors). So, how do you differentiate genuine loan providers for instant online loans from loan sharks? Here are some useful tips.

  • Genuine online financial institutions are guided by the laws laid down for financial operators in Singapore. However, loan sharks are not. So, if you are suspicious about a certain loan provider, look it up online (both the company and their business should be registered).
  • Unlike financial institutions who are very straightforward about the loan terms and agreements, loan sharks are not. You will get them online, indicating they have very low-interest rates, but will not provide the loan agreements to avoid revealing their hidden charges. So, if you find a loan provider who does not provide borrowers with loan agreements, there is a likelihood you are dealing with a loan shark.
  • Most loan sharks insist on closing their deals by phone or online. However, every loan provider is required to carry due diligence on clients, including having a face-to-face meeting. Therefore, if you see a loan provider who does not insist on due diligence, including a face-to-face meeting, is likely to be a loan shark.

Six Ways You Can Use Instant Online Loan in Singapore

As the tough times caused by the COVID-19 pandemic continue in many parts of the globe, including Singapore, even the common issues are proving very tough. The good thing about instant online loans in Singapore is that you can use the cash as you wish after loan approval. Here are some common ways you can use the funds after loan approval:

  • Meeting medical emergencies
  • Catering for unexpected costs in your event
  • Repairing your car
  • Topping up funeral budget costs
  • Repairing your home
  • Paying extra holiday expanses

Advantages of Using Instant Online Loans in Singapore

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

You are Free to 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 it is up to you to decide how to use the funds. So, if you had an accident, some money can go to paying medical bills and the rest repairing the car.

The Process of Application is Simplified

To make it easy for borrowers to access instant online loans in Singapore, most financial institutions have simplified the process so much. As long as you have all the required documents, it is possible to complete the application pretty fast. However, it is crucial to start by checking the requirements outlined by the financial institution.

Instant Online Loans Offer a Perfect Opportunity to Improve Applicant’s Credit Score

If you were thinking of how to improve your credit score, short instant online loans could be an excellent option. Because they come with a short timeframe, you can pay them rapidly to build a positive history. To make the process of improving your score even more effective, consider also maintaining a good credit mix and get your credit report to correct possible errors.

As you focus on the benefits that come with instant loans, know that the amount that can be approved is usually small. For example, banks are willing to approve higher amounts for mortgages and car loans compared to instant loans. This is why the funds are used for sealing small gaps in personal finances.

Mistakes to Avoid when Applying for Instant Online Loan in Singapore

Although the benefits that come with using instant online loans in Singapore are many, it is important to avoid the following mistakes:

Failing To Check Your Personal Ability To Repay The Loan

When you take instant online loans, they are like any other type of credit and default is likely to have serious implications. Therefore, failing to think of how the loan will be repaid after approval raises the risk of default. If this happens, your credit score will be damaged, and the chances of getting loans in future will be very low. Even the financial institutions who might want to work with you will be charging very high-interest rates.

Borrowing Money from Loan Sharks

These illegal players have very high-interest rates and can easily cause emotional stress because of the abusive methods they use to ask clients to repay money. This is why you should work with trusted loan comparison sites, such as Lendela, because they deal with banks and financial institutions only.

Not Factoring Other Debts in Your Budget

As you fill that application for an instant online loan, it will be a great mistake to fail to factor other debts into the monthly budget. For example, do you have a mortgage or student loan that you are repaying? If you fail to factor in these additional obligations, there is a risk of payments galloping over 35% of your income, which is the recommended level. Therefore, think about your monthly budget and how the new loan slots into it. If the budget is very tight, think of some items that can be expunged, such as avoidable luxuries, and direct the money into paying debts.

Thinking that Unsecured Loans Do Not Have Significant Impact

This is one of the common perceptions that people hold, but is a serious mistake because it makes them sluggish in paying their debts. Although instant online loans are unsecured and defaulting will not result in auctioning of your assets, the damage caused can be equally severe. The most notable is the damage to your credit score, which implies that future loan applications are likely to get declined. Indeed, it is not just about loans. Now, even employers and phone companies are making background checks and only prefer working with those who have a good score. As you can see, the best thing you can do after securing a loan is to ensure you repay within the agreed timeframe.

Apply for Instant Online Loan Singapore through Lendela

If you want to avoid some of the mistakes we have listed above, the best way is to apply for loans using Lendela. Lendela is a loan comparison service dedicated to assisting Singaporeans with a better and simpler method of applying for instant online loans.

Lendela works with a long list of banks and financial institutions in Singapore to ensure that clients using our platform do not fall into the danger of loan sharks. In addition, we help to match loan applicants with potential banks and financial institutions. This makes the approval rate of the applications made through Lendela pretty high. In addition, the process of the loan application only takes a short moment. No need to take the whole day or week!

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. Then, 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 dispatched to your account immediately.

As you can see, getting urgent loans in Singapore has now been simplified. If you have any emergency, many loan providers are willing to lend you cash in ransom, and you repay in instalments. To ensure you select a good banks or financial institution and only pick the best loan, make sure to use Lendela.