Payday loans are handy for getting out of sticky situations. However, many Singaporeans do not know about the benefits of getting payday loans. Singaporeans, as a general rule, do not like getting loans. Some turn to it as a last resort, because they are tired of borrowing from family and friends. A payday loan is a fast solution of cash, but a lot of people do not know how to go about acquiring such a loan.
A payday loan is a small loan. It is also a short-term loan that you can get to settle some monthly bills. They are most effective when you don’t want to miss any payments or explain about post-dated checks that have bounced. If you have any financial emergencies that require instant attention, a payday loan is just the thing for you. There are financial lending institutions in Singapore that offer payday loans here are some benefits to getting a payday loan.
Here Are The Top 10 Advantages Of Getting A Payday Loan
- You Can Apply And Qualify Easily
Unlike with other, larger loans, it is easy to obtain payday loans. Whether it is a payday loan or a cash advance, you will qualify for one easily. This is because the requirements for getting a payday loan are simple. You just need to have an adequate monthly salary. You also need to have a good loan repayment history. Since payday loans are to be repaid when you get your next paycheck, it is important that your repayment history is good. Once these two particulars are covered, you can get your loan.
- Your Personal Information Is Kept Confidential
You don’t have to be afraid of your banking details getting out. All information provided to the lending institution is kept highly confidential. They are not authorized in any way to give your personal or banking details to anyone. You can apply for a payday loan knowing that your details are safe with them.
- The Loan Application And Approval Process Are Fast
Personal loans from banks are the most common type of loans that Singaporeans apply for. However, the application process is long. The approval time is also quite long. It can take up to weeks for your loan to be approved. With payday loans, this is not the case. The application process is brief, and your application can be approved within minutes. Most moneylenders will even give you a guarantee of one hour to get your money once they deem you qualified for it. This makes payday loans great for emergency cash situations.
- Payday Loans Are Flexible
Knowing the tenure of a loan helps you plan better for repaying it. Payday loans are loans with short tenures, i.e. short-term loans. However, they are flexible in that you repay when your next paycheck arrives, and not before.
- The Amount You Can Borrow Depends On Your Monthly Income
At any given time, you can only borrow as much as your monthly income allows. While some may see this as a disadvantage, it actually works to your advantage. Repaying loans is easier for you this way. It also serves as a deterrent, stopping you from borrowing more than you need. Furthermore, you effectively avoid falling into a debt cycle.
- There Is Legislation In Place That Protects You As A Borrower
This is an important fact that many Singaporeans do not know. The government has put in place rules that protect you from unscrupulous lenders. Some loan sharks go about, giving loans and charging exorbitant interest rates on the loans. There are laws that in place to keep you from getting high-interest rates. It is necessary that you know these laws before going for a payday loan.
- You Can Use Your Loan For Anything
Typically, a payday loan doesn’t have any limitations on what you can use it for. For example, bridging loans are a specific type of loan used for obtaining property or selling/buying a house. Payday loans can be used for anything. That makes them a good option when you need instant cash to solve a problem.
- Payday Loans Are Convenient
Getting a payday loan is very convenient. This is because most lending institutions (that are not banks) stay open after normal banking hours and open on weekends. These factors make them easy for you to apply for loans and get them. They also provide you with a quick solution in case of an emergency.
- They Are Very Useful For Emergency Cases
Circumstances that require money can crop up at any time. They are emergencies when they occur when you do not have any money at hand. Whether it is the rent, credit card bills, or to pay off a debt to a friend, payday loans are good for that.
- There Are Caps On Fees And Interest Rates
The government has placed limits on how much payday loan lenders can charge borrowers. There is a maximum interest rate that they can charge you. There are also limits to the fees that can charge. Fees may even be limited to a one-time administrative fee and a fee for late repayment.
Payday loans are the perfect solution if you need to settle some bills without defaulting. A payday loan is also safe to go for if you want to keep your credit score clean. If you are considering getting a payday loan, you should think of the benefits. Payday loans are easy to obtain, and they are flexible when it comes to repaying.
Rules have been set in place to protect your interests. These prevent payday lenders from charging you high rates or fees. Most importantly, they are the best thing to get to settle immediate financial needs. With payday lending institutions everywhere, you can conveniently access one with a loan. Remember these pros when you want to get a payday loan.