Applying For An Urgent Loan In Singapore? Here’s What You Need To Know

Emergencies can happen to anyone and at any time. It may be important for you to consider where you can get your quick cash or an urgent loan from when a sudden need arises, especially if you have bad credit to boot.

Certainly, you would have to calm yourself first. This way you will be able to figure out a way and obtain your funds. You will be able to easily evaluate your options and find the best solution to your financial challenges.

What Are Urgent Loans?

Simply put, in Singapore, urgent loans are loans that you submit a loan application from licensed money lenders like Raffles Credit and receive within the hour. These loans can be anything from a quick cash loan to a personal loan to a payday loan.

For these fast loans, Singapore citizens can use them for anything that they might need, with some examples like paying off their credit card bills or a utility bill that has been overdue for a while now before they can repay it off. These bills, while smaller than what an average person would take out a personal loan for, nevertheless need to be repaid before their credit scores are further impacted.

These situations can be even more stressful coupled with the complicated application process and long approval periods from the bank as the amount due could affect their daily lives, not just for themselves, but their family as well.

A good way to bypass such issues and the long waiting periods is to obtain an urgent loan Singapore service from licensed money lenders.

When you are in need of emergency cash payday loans issued from registered moneylenders are among the best options. Oftentimes the loan process is a lot faster compared to that of the bank’s personal loans.

Most loan companies in Singapore often offer their customers a short-term payday loan with low interest rates which can have more flexible terms. You can also make use of fast loan Singapore calculators to assist you to get an idea of the amount of money you can borrow. This will also help you know the interest charged and the monthly installments as well as the loan tenure.

Limitations

However, you need to be very careful when selecting a moneylender. Ensure you borrow from registered moneylenders by checking the Registry of Moneylenders found in the Ministry of Law’s official website.

Although moneylenders are helpful during emergencies, there are personal loan sharks who act as if they want to assist you financially. They, however, end up sucking on your finances. Discover ways of spotting personal loan sharks to help you avoid falling for their scam.

Advantages of Taking Out An Urgent Loan from Licensed Money Lenders

There are several advantages to taking out an urgent loan with a licensed money lender.

1. Quick application and approval processes

When you work with legitimate moneylenders, you won’t need to spend weeks waiting for a decision to provide you with financing.

Once you submit proof of income and employment to legitimate lenders, you can receive your urgent loan amount quickly. In doing so, you can address any medical or injury-related accident that requires a huge amount of financing as quickly as possible.

Unlike banks, moneylenders do not refer to a borrower’s credit score, which we will explain further below.

You can use your line of credit or money lender instant cash loans to provide you with excellent financing in no time. Swiping your credit card or credit line ATM gives you immediate purchasing power, which is useful even in emergency scenarios.

On the other hand, moneylenders just need your income and employment proving documents. You will receive your financing once you’ve submitted these documents as part of the application process. Then, you can receive fast cash on the same day too.

2. Lower interest rates

While there are many other options available for someone who is in need of an urgent loan, most of these options charge higher interests as well. Credit cards are notorious for having high interest rates. This means that if you are paying off several expensive bills, your high interest rates along with the bill will cost you more in repayment than what you should be paying in the first place.

While you can also take out loans with a bank in the form of cash advances or overdrafts, remember that their interest rates can also be exorbitant.

While the cash advances are a short-term loan facility from banks that can be a lifesaver, you should expect high-interest charges starting from that day you make the cash withdrawal. Some banks can even charge for cash advance interests that range from 24%-29.9% for each year.

You need to be aware that cash advance interests are compounding. That means that interest is charged on the existing balance and not on the withdrawn principal loan amount.

The more time you take in settling your cash advance, the more you will end up paying. This might also drag down your credit score as well.

Licensed money lenders, on the other hand, have strict caps on their interest rates, making it a cheaper alternative to using your credit cards for large bills like these. Most licensed money lenders will only charge 4% monthly, making it a much cheaper option than what other lenders can sometimes offer.

3. Low credit scores are not an issue

Low credit scores can hurt someone’s chances of getting a loan if they aren’t careful. For anyone looking to borrow from a bank, you are required to have a good credit score in order for you to make use of their services. Most banks are risk-averse concerning any loan, regardless of how urgent the loan is needed if you have bad credit scores.

Some banks will even require you to offer collateral while other banks simply offer this loan facility to individuals who have to be their customers for a long time.

Why Apply with Raffles Credit?

1. Part of The Registry of Moneylenders

All moneylenders registered in Singapore’s Registry of Moneylenders comply with the rules the Ministry of Law has set. In doing so, Raffles Credit and other trustworthy lenders comply with regulations that guarantee fairness and quality service to customers.

2. Excellent Reviews

Loan Advisor has awarded Raffles Credit one of its Top 10 Best Moneylenders for 2020. Beside this, Raffles Credit also earns very good review in Google. With Raffles Credit, we guarantee exceptional service with a smile. If it’s your first time to apply for an urgent loan, we can approve your loan application and explain your complete terms and conditions in no time.

3. Flexible Payment Options

Even if you have bad credit, Raffles Credit’s excellent payment options are available to you. We will help you pay lighter and sustainably with flexible regular payment options. In doing so, you won’t have any trouble paying for your financing and avoid landing in the red.

Conclusion

When you are applying for fast cash loan, ensure you learn the advantages and benefits of the options available to you. It is advisable that you shop around for a moneylender that will offer you the best solution even with the pressure the urgent situation may have.

And regardless of what the reason for your urgent loan may be, make certain that you take the time to read all the conditions and terms to avoid making mistakes. Although there is an urgent need for money, you should not allow this urgent need to be the cause of your financial ruin.