The financial industry is in itself very tough. Even with the money lending business that is present within it. Singapore’s money lending industry is continuously looking to adjust to the many changes. These changes are often resulting from the government policies enacted as well as the innovative changes in the economy. This oftentimes leads to high competition among the different moneylenders in Singapore. Each lender uses attractive personal loan offers to attract borrowers. The current economy is also contributing greatly to the rise in competition. This is because of Singaporeans’ salaries and wages have stagnated and job opportunities are on the decline.
This has led them to seek out personal loan options as a way of having the quick cash to fix their financial needs and desires. Singapore has many different personal loan types available to its citizens. The instant cash loan being the most frequent loan type offered to borrowers by the lenders. Both moneylenders and banking institutions offer instant cash loans. This loan type is at times referred to as cash loan. The loan name may not be the issue. But of importance is that borrowers need to carefully weigh the different pros and cons off getting this loan offer.
Pros Of Cash Loans In Singapore
The following are some of the benefits an individual enjoys when taking a cash loan in Singapore. This has made it easy for potential borrowers to be able to take out personal loans from lenders. One thing to bear in mind is to always deal with a licensed moneylender for your loan transactions. This will ensure you enjoy competitive interests and are safe.
- Fast Approval
Instant cash personal loans allow borrowers to have access to fast cash pretty quickly. Since there ate fewer credit checks and no collaterals needed, this loan type is made easily available to you. Many lenders in Singapore are able to offer a quotation based on your income for each month. This is on many occasions done through an email request. Lenders often reply to loan requests within 1 to 2 working days.
- Easy Application Process
Owing to the rapid growth in the use of the internet, many moneylenders are offering their loan services online. This, for a potential borrower, means you can go online to have your loan pre-approved without physically going to their offices to await approval. This has made it possible for a potential borrower to get several quotes from different moneylenders. This also allows borrowers to be able to first survey the market, obtain quotes. And also compare the different loan offerings thus end up making more intelligent choices in the future.
- Flexible Repayment Plan
Moneylenders offer cash loans that are a lot easier to understand. All a borrower needs to do is show proof that they have a steady source of income. In general, a borrower is able to get a loan amount of 2-4 times their monthly income. Normally, your credit score does not affect the approval process of your loan application.
- Less Paperwork
When making a loan application from a moneylender, you are required to meet a few requirements for you to get a personal loan. Some of the requirements include proof that you have a stable income source and proof of residency. These allow the loan application process to be speeded up. Make sure you confirm with your lender the needed documents before you make a loan application.
Cons Of Cash Loans In Singapore
There are some downsides of cash loans that a borrower needs to consider carefully.
- Purpose Of The Money
Experiencing a cash influx might lead a borrower to have no control. It is easy for A borrower to splurge the newly found money. This is instead of meeting your financial needs and also settling your debts needs. Once you have received your cash loan, you will need to lots of control, discipline, and a purpose for the loan money. It is recommended that you always put a plan in place for your money resources. This will ensure you get bills paid and you meet your financial obligations.
- Interest Charged
Although the interests charged on loans are generally high, it is possible for a potential borrower to find a lender who is offering a suitable interest to suit your financial needs. Make sure you shop around before settling for a particular lender. This will ensure you get the best loan offerings available in the market.
Bank vs. Pawnshop vs. Moneylender
If you are thinking of places to get instant cash loans in Singapore, there are three places that you can go that are legitimate and you are sure of getting your money.
Getting a loan from a bank in Singapore is a long, tasking process. Banks have to very careful when giving out loans, so they have to cover all their bases. Banks go over your financial history to determine if you will be able to pay back the loan, and they need to view all your documents before they can deem you fit for a loan –bonus for you if you are an account holder with the bank you are requesting a loan from. Banks require collateral for their loans, and you are required to repay the loan anytime from 3 years to 7 years, with high-interest rates and stringent terms and conditions. As for time of disbursement, you will get your loan in a week, which may not be ideal if your need is very urgent.
Typically found near MRT stations and connecting bus stations, pawnshops have been around for a long time, and are renowned for their quick loan disbursements and hasty transactions. The only collateral they accept is luxury watches, bags, and other valuable jewelry. You will also need to show them some valid identification. Pawnshop loans only have a maximum term of 6 months, and the interest rate increases every month. Failure to repay the loan transfers ownership of the collateral to the pawnbroker.
Once a very mistrusted source of loans, moneylenders are gaining prominence in the loan-taking scene in Singapore. With a governmental body governing their activities, moneylenders have a maximum interest rate of 4% on all loans. The process of getting a loan is very short: just present some documents and you can get your loan, without collateral. For your interest and protection, however, make sure you check the list of licensed moneylenders before transacting with any of them and make sure you understand the terms and conditions of the loan before you take it.
Summary Of Cash Loans In Singapore
Singapore’s government has put in place new control measures. These regulations and rules have now capped the interest rates at 4% for each month. The new ruling has lead to moneylenders being careful on whom they give loan money. For this reason, it is advisable to be upfront when you have any problem or even an action plan. This will greatly influence your chances of getting hold of loans issued to you from moneylenders.
When you find yourself in doubt, it is always advisable to check in with your loan officer. This way you will get the chance to clarify and seek further explanation on the loan of interest. A cash loan is an easy loan scheme; even then, it is advisable to be cautious when you are borrowing. And of importance is to always read the loan terms and conditions given in the loan contract.
When you have any questions, be sure to ask your loan officer. This is especially in regard to the repayment terms packages available for you. And also be sure you inquire about any additional fees and charges you will incur during the loan processing.
Ensure that you are well informed and are a smart borrower. This will let you make better loan choice decisions. And above anything else, be sure to find a certified moneylender you are comfortable with. And one who is more than ready to transact with you.
Always take time to shop around, make inquiries, and read reviews here. These are some good sources of the much-needed information that will enable you to make the best financial decision.