Singaporeans are more open to the ever-growing lending industry with the increasing need for quick cash loans. The tight competition has compelled instant cash loan providers to create innovative solutions and products that cater to the growing market. Moneylenders look at these needs and thereafter come up with loan products that can serve their clients.

Why Take A Loan

Borrowers need to evaluate their reasons for requiring the quick cash. Since there are three lenders for them to pick from, they can better decide on the provider that best suits their financial needs.

Emergency Bills

Sometimes health insurance may not cover parts of hospital bills. When you don’t have emergency funds, it’s likely that you require some quick cash loan such as payday loans.

Consolidating Debts

Debt consolidation is merging your personal loans into a single one yet reducing the interest rate on the most right tenure. Thus, you can apply for personal loans that have low-interest to repay your debts. This will help you be free from serious financial burdens.

Business Operations

To help you start a business you need capital to launch it. Additionally, you have to hire staff to assist you, machinery, and maybe rent a place. Even when your business is booming, do require a business loan to help branch out or expand. To upgrade your business by automating the business you will need money.

Surprising Increase In Bills

An unexpected increase in the bills might mean that you may be short on your budget. When your next pay is around the corner, yet you require the money now, what you need to do is make a request for a quick loan.

Investments

At times a good chance for you to make an investment might come to you. However, you aren’t able to go through with it when you don’t have the cash. Luckily, taking out a loan might help you invest.

Buying Second-Hand Watches And Bags

For someone who is eyeing a second-hand bag or even a luxury watch, a loan can help you not miss a chance like this. However, buying second-hand items means you have to make cash payments. In this case, taking out a quick loan might save the day.

For Dream Vacation

For a hardworking employee taking a breather maybe what you just need. Thus don’t deny yourself the grand vacation you’ve always wanted. Getting quick cash loan can help you book the tickets.

Gambling

Gambling habits are a big cause of people losing money. Although some admit that it’s just a break from demanding work schedules, others have gone to lengths of making it a hobby.

Types Of Lenders in Singapore

Moneylenders

Legal moneylenders have flexible, low-interests that are capped at 4% by the Moneylender’s Registry. Because they require fewer documents to help process your application, it is possible for them to approve and pay out your money in under an hour.

Many moneylenders, in addition, offer foreigner loans which are specially provided to foreigners who need quick cash and it doesn’t necessitate any collateral.

Banks

To ensure that a borrower is able to repay the loan taken with interest, most banks examine your documents before approving your application. It might take almost a week to have your cash disbursed. Additionally, they rarely approve applications form expats even when you hold a good credit rating.

Additionally, collateral is required in exchange for loans such as mortgages or auto loans. When you don’t own large assets, it can be hard for you to get your loans accepted.

Pawnshops

Pawning is recognized for fast transactions, fast cash disbursements, as well as availability to everybody aged above 16 years old. Many pawnbrokers only offer secured loans against security like luxury watches, jewellery, and bags. When you don’t have any valuables, you won’t get a personal loan from them.

Also, you’ll need an identification card. Foreigners can also get loans from pawnshops provided they have to present employment documents like the E-pass.

Interest rates may start at 1.5%, but each month it’s topped with an additional 1.5%. Thus the faster you repay the loan, the less in interest will need to worry about. Failing to repay the loans automatically transfers the ownership of your valuables to the pawnbroker.

How To Spot A Legal Moneylender From A Loan Shark

First, check the moneylender’s name against the name list of certified moneylenders accessible from the Moneylender Registry. Should the business name be missing, it’s probably to be a phoney lending company attempting to suck your cash instead of assisting you.

In Singapore, moneylenders aren’t permitted to promote themselves through emails, SMS, flyers and even phone calls. However, they may advertise through their business websites, directories and in their establishments.

Next, evaluate how they are dealing with their clients. Check to see whether they professional or if they use abusive language. There are some unlicensed lenders who get borrowers personal information by means of social media then use it for threatening clients into signing loan agreements.

Your SingPass is very personal thus never give it to anyone. Even certified moneylenders are not allowed to have to access it. When they need to get more personal details, you should be the one to enter it in their records.

Something to look out for is whether they refuse to hand back original copies of your own personal documents. Most legal moneylenders require copies of your papers. However, they shouldn’t keep original ones.

Fast payday loans are grand, but be sure to understand their due and legal process.

When you are granted a personal loan without a lot of fuss, don’t celebrate just yet. Bear in mind that loan sharks might be extra happy to lend you money fast as bait to lure you into further debts.

To heighten your suspicions they might ask you to sign an agreement but you aren’t given a copy. Keep in mind that every financial transaction needs to be put on paper for records.

Once you receive your cash, be sure to count it before you leave the premises. You need to get your approved total loan amount in full and not in bits.