With the need for fast cash loans getting more common, Singaporeans are becoming more open to the ever evolving lending industry. That said, the tightening competition compels each instant cash loan provider to hustle and create innovative products and solutions to cater to the expanding market.
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The increasing demand among citizens and foreigners living in the city-state are due to various reasons. Moneylenders study these needs, and then they build innovative products that they can introduce to their clients.
Different licensed moneylenders may also offer services to different clientele, although it is likely that these will overlap.
Usually, banks only serve their own account holders. If you are planning to get a loan from the bank, prepare yourself for a grueling process.
This type of financial institution is being careful with the involved risks in giving loans. Thus, they require a long list of legal documents that you have to provide.
To be sure that the borrower can pay back the loan with interest, the banks scrutinize your documents before getting approved. It takes almost a week for the cash to be disbursed. Moreover, they seldom approve expat applications even if you have good credit history in your country.
Banks also have different products depending on your purpose. However, all of these come with fixed terms and conditions–making them the least flexible. Despite the few tweaks, these may come with tight boundaries.
In addition, they require collateral in exchange for their loan products such as auto loans and mortgages. If you do not have large assets, it may be difficult to have your loans approved.
Banks usually offer the shortest tenure at 3 years, and can be extended to 7 years. However, this comes in with high interest rates ranging from 4.35% to 8%.
It is a common thinking that banks can only offer loans to those who don’t really need it and they deny it to those in need. Thus, this makes low wage earners go to pawnshops and moneylenders.
Pawning is known for its fast transactions, quick cash disbursements, and availability to everyone not younger than 16 years old. These establishments are usually found near the MRT stations and connecting bus stations.
Pawnbrokers only give secured loans against collateral such as jewelries, luxury watches, and bags. If you do not have any valuables, you can’t get a loan from them.
You also need to have an identification card. Even foreigners can get loans in pawnshops if they have employment documents such as an E-pass.
Since the collateral do not have as much ceiling value as cars and houses, the loans can only have a maximum term of 6 months. The interest rate can start with 1.5%, yet every month it is topped with another 1.5%. The sooner you pay off the loan the less interest you will have to worry about. Failure to pay off the loans will automatically transfer the ownership of the valuables to the broker.
Emerging and going strong in the lending industry, a lot of Singaporeans are now going to moneylenders for various reasons.
Licensed moneylenders boasts their flexible, low interest rates that the Registry of Moneylenders cap at 4%. Since they require minimum documents to process an application, they can approve and disburse your money in less than an hour.
Many moneylenders also offer foreigner loans. These loans are specially offered to foreigners in need of quick cash, and doesn’t require any collateral.
If you are worried about the payment schemes, do not hesitate to talk to your moneylenders about it. The licensed moneylenders will be willing to create payment schedules to help you pay off your loans. They will even guide you on how much and which loan you can get.
Reasons You Might Need a Loan
With these three lenders to choose from, borrowers must also evaluate the reason they are in need of quick cash. That way, they can make a clear and better decision on which loan provider best suit their need.
Singapore takes pride of its highly effective healthcare system, which is the best in Asia Pacific. However, there is a possibility that a health insurance cannot cover some parts of the hospital bill.
If you do not have emergency funds in your bank, chances are you need a fast cash loan.
Most lenders, be it banks or licensed moneylenders, offer business loans.
You might want to put up a business and you need a capital to kick start it. Plus, you need to hire some staff to help you out, machinery, and possibly a place to rent.
Business is booming? You still need a business loan to expand or branch out. You might also consider automating your business to lessen your load and duties. This upgrade requires money.
Let’s face it: Some Singaporeans end up with a couple of debts that have skyrocketing interest rates.
Thus, they apply for personal loans with low interest rates to pay off their debts. Doing so allows them to be free from heavy financial burden.
Debt consolidation is like combining your loans into one, while lessening the interest rate at the most suitable tenure.
Surprising Increase in Bills
When you think everything is going on smoothly, your bills will have funny ways to sneak up on you. A sudden increase in your bills could mean that you will be short in budget. If your next paycheck is just around the corner, but you need the cash now, all you have to do is apply for a quick loan.
Purchasing Second-hand Bags and Watches
Are you eyeing a luxury watch and a second-hand suddenly came within your reach?
It is hard to pass up chances like this. Yet, buying second-hand item means you need to pay in cash. If that’s the case, a quick loan can save the day.
Heard how the UOB gold prices are being dynamic these days? A business put some stocks on the market that you think has great potential to grow?
Sometimes the good chance to invest would knock at your door. However, you cannot push through with it if you do not have the money. Good thing, applying for a loan can help you start with investing.
Getting Your Dream Vacation
There is a long weekend coming up, are you ready to grab a vacation in Bali?
If you are a hardworking employee and you need a breather, do not deprive yourself of the grand vacation you have always wanted. Get quick cash loan to book you tickets!
The risk of losing money will be imminent if you have gambling habits. While some profess that it is just a timeout from their demanding work, others have made it a hobby.
You know you cannot enjoy gambling if you have very limited cash to bet. Thus, you will need more cash to try and hit the jackpot. In case you lost more than you actually have, then a quick loan is your escape ticket.
However, do not overdo it.
Regardless of the reason, wisely choose where you are getting your loan. Banks don’t disburse cash quickly, pawnshops require collaterals, and there are so many moneylenders to choose from.
How Will You Spot a Licensed Moneylender from a Loan Shark?
First, you have to check the business name against the list of licensed moneylenders available in the Registry of Moneylender. If the business name is missing, it is most probably a bogus lending company trying to milk your money instead of helping you out.
How did you get to know the moneylender? The moneylenders are not allowed to advertise through SMS, emails, phone calls, and even flyers. On the other hand, they can advertise through directories, their own business websites, and in their business establishments.
Then evaluate on how they deal with their customers. Are the staff too pushy? Are they professional or are they using abusive language? Do they blackmail you? Some unlicensed moneylenders get personal information through social media to threat clients into signing contracts.
Despite any coaxing, threats or charm, never give away your SingPass. It is very personal and even licensed moneylenders are forbidden to gain any access from it. Should they need it to get further personal details, it should be you who have to key it in their database.
Another red flag to look for is if they refuse to give back the original copies of your personal documents. Most moneylenders need copies of your documents, but they should never keep the original ones.
Quick payday loans are great, but is there due and legal process?
If you were granted a loan without much fuss, don’t be happy just yet. Remember that loan sharks would be more than happy to quickly lend money as bait to a life buried in debts.
Even heighten your suspicion if you are asked to sign a contract but you are denied of a copy. Remember that any financial transactions should be put in paper for documentation.
As soon as you get your cash, count it before leaving the premises. You should get your approved principal loan as a whole and not in parts.
There are a lot of moneylenders willing to help you out, but some do not have the right intentions. Should you spot an unlicensed moneylender or a loan shark, email the Registry of Moneylenders at OneMinLaw@mlaw.gov.sg or call them at 1800-2255-529.
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