Comprehensive Guide: Payday Loan in Singapore
Are you thinking of taking out a Payday Loan in Singapore?
Even those with regular jobs sometimes need emergency cash. If your paycheck is still a few days or weeks to go, you have to pay a bill immediately, or you can’t pass up an opportunity to buy a valuable item that rarely goes on sale, you can get a payday loan in Singapore.
However, every time you sign a loan contract, two things will come to mind: “Are you getting the best payday loan deal?” and “Are my information really safe?”
Learn to identify the best legal payday loan with our comprehensive guide to ensure that you are not getting ripped off.
What is a Payday Loan?
Payday loans are usually multi-purpose.
Like on a few occasions a year, an unexpected bill, a lovely holiday, a chance to pamper yourself during a great sale, or even during a festive season, there are times when cash consumption is high. These moments are when we run low on our personal daily cash flow, and a need for a cheap payday loan will arise to bridge over for a short term.
Cash Mart provides helpful payday loans that help fill the gap before the next paycheque arrives.
How Do Payday Loans work?
Payday loans do not require any collateral. Therefore, this type of unsecured loan is easier to process since there are lesser requirements compared to secured loans.
Licensed moneylenders understand your emergency needs mean a quick cash disbursement. So choose a moneylender who can provide cash in less than an hour, like Cash Mart, which can disburse money in 30 minutes. Your loan will be disbursed to you on the spot in cash or cheque.
Once you receive your cash, do not forget to repay your loan based on your agreed terms. This way, you can keep your credit score high and your relationship with your lender healthy.
Which Payday Loan is Easiest to Get?
Every lending company has its own loan process. Nevertheless, all of them need to require the essential qualifications and documentation mandated by the Moneylenders Act.
But since a payday loan is usually used for urgent needs, the easiest you can get is the online payday loan.
With online payday loans, you can simply visit the lender’s website and fill up the application form. Once an appointment is set at your convenience, you can visit the office to sign the contract and get your cash. Online transfer of cash loans is prohibited.
The whole loan process can take as short as 1 hour to a day.
Which Payday Loan is my Best Option?
A payday loan online is a tool to help you in times of urgent financial needs. However, with too many options, you need to take the time to shop around, research, compare, and decide which payday loan is best for you. Get to know the fees, check the repayment options, and choose the most favorable for you.
How to Get a Payday Loan Online?
A payday loan online is a tool to help you in times of urgent financial needs. However, with too many options, you need to take the time to shop around, research, compare, and decide which payday loan is best for you. Get to know the charges, check the repayment options, and choose the most favorable for you.
Where to Get Payday Loan Online?
Get online payday loans only from licensed moneylenders who strictly abide by the Moneylenders Act and are part of the Credit Association of Singapore (CAS). The Registry of Moneylenders and CAS have agreed that all registered moneylenders must be a member of the Association.
Are 1 Hour Payday Loans Possible?
Of course! Payday loans are usually used for emergencies and urgent needs. There has always been a growing need for 1 Hour Payday loans. Now that we have online payday loans, you can get your disbursed cash in less than 1-hour.
It only takes 3 to 5 minutes to complete the online payday loan application. Once approved, you can immediately get your cash.
Add to that, if you can keep a good relationship with your money lender, you can even strike a better loan package with the same quick application process.
Should I get a Massive Payday Loan?
Getting any loan is a serious financial responsibility. It would help if you considered that any loan amount should fit your need and your capacity to pay on time. Too little amount may cause you to get another loan sooner than you think, but too much might make it hard to repay your loan.
It is a good thing if your money lender will be able to provide an online loan calculator. This way, you can make a well-informed decision.
Who Provides Protected Payday Loans in Singapore?
Get a payday loan only from licensed moneylenders.
Do not be tempted to borrow from Ah Longs. They may give you more cash, yet they will ask for higher interest rates that can bury you in debt for a long time. In addition, loan sharks use illegal ways to get their money, and MinLaw has strict regulations for people associating with Ah Longs.
Who can Get a Legal Payday Loan?
Anyone can get a legal payday loan as long that he/she can meet the set eligibility requirements and can present the required documents. The Moneylenders Act mandates every licensed moneylender to conduct due process when providing loan services.
It only means that those who have successfully gone through a loan application process will get approved for a legal payday loan.
If getting a payday loan is too easy without even having to submit a requirement, you are dealing with a loan shark.
Where Do I Find Good Terms of Payday Loan in Singapore?
What constitutes a good payday loan term in Singapore? You can get a payday loan in Singapore from a handful of licensed moneylenders. But having lots of options can sometimes be confusing.
You have to identify how much you will need.
Calculate how much you can afford to borrow and repay. Then, work out how long it will take to settle the total amount. Compare your options online. Shop around and look for a lender with eligibility requirements that you can meet.
Since you are getting a loan from a registered cash lender, you can be assured that the interest rate will not be more than 4% a month. Do your research and pick a payday loan that will suit your needs. Take a short-term loan offered by a reputable money lender.
How are Payday Loans Calculated?
Licensed lenders are highly regulated in Singapore. That is why rules and regulations are often updated to make the money lending industry fair and safe to both borrowers and lenders.
The Ministry of Law has put in place the unsecured loan caps.
For low-income borrowers who earn less than $20,000 annually, the maximum total loan from all moneylenders in Singapore will have a cap at $3,000 only.
For those earning more than $20,000, the aggregate loan cap will be 6 times the monthly salary.
Consider, Borrower A has a monthly income of $3,000. It means the borrower’s annual income is more than $20,000. The maximum loan he can get from all moneylenders in Singapore is $18,000. If Borrower A gets approved for a $5,000 cash loan, he can only apply for $13,000 from other lenders.
Take note that the loan cap only includes the capital loan amount. In addition, interest charges and other fees are excluded.
How much Can I Borrow?
Like any unsecured loan from a licensed moneylender, Payday loans are computed based on the guideline of the Moneylenders Act. Your payday loan in Singapore is calculated based on your annual income.
The annual income is calculated based on your salary for the last three months prior to the loan application.
Let’s say, Borrower B was jobless for a month but started to work in January 2019. So he applied for a loan of $3,000 in March 2019.
December 2018 = no salary
January 2019 = $3,000
February 2019 = $3,000
Annual Income = 0 + $3,000 +$3,000 = $6,000
$6,000 รท 3 = $2,000
$2,000 x 12 = $24,000
Since Borrower B’s annual income is more than $20,000, he can borrow as much as 6 times his monthly salary, $18,000.
How does Payday Loan Payment Calculator work?
When using a payday loan calculator, you have to key in how much you want to borrow and the repayment term that lets you settle your loan quickly.
Remember that you also have other financial responsibilities such as your bills, food, and transportation. Therefore, it would be best to consider your daily needs aside from your loan repayments.
With the loan calculator, you can easily see if you can repay it without sacrificing your basic needs. Also, it will help you know how you will adjust your finances effectively.
What does Refinance a Loan Mean?
Refinancing a payday loan means replacing an existing payday loan with a new one. The new payday loan will pay off the current one. It is a smart option if the new payday loan has good and manageable terms to help you improve your finances.
Take note that the new loan has to ultimately pay off the existing one. So make repayments to the new loan until you can settle it.
Is Payday Loan in Singapore Bad?
Payday loans are financial tools you can use to regain financial stability. Depending on your financial skills and discipline, a payday loan can be most helpful in unforeseen needs and can even help you build a healthy credit score.
Ensure that you get a loan amount that you can confidently repay with ease while also handling your other financial responsibilities.
Why is My Payday Loan Application Declined?
There can be various reasons why your loan application could get declined. The most common is a low credit score.
Before granting a loan, the licensed money lender must obtain the necessary information from the loan applicant. Then, the data gets verified by checking the details and identification against complete, genuine, and up-to-date documents.
The licensed money lender will then inform the applicant to submit the information to the Moneylenders Credit Bureau (MLCB). Your credit report is produced and will be kept in the licensee’s record.
Your credit report is the record of your previous loans. If it is low, it means that you have unsatisfactory payment behavior. The lender will derive a low credit score which means you are at a high risk to default a loan. Conversely, you will likely get approved if you have a high credit score.
Your credit report will be disposed of from the lender’s records if declined. However, if approved, your lender will keep your credit records for 5 years upon completing your repayment.
Another reason to decline is when you have exceeded the loan cap based on your salary. Remember that MinLaw has an aggregate loan cap on lenders offering unsecured loans. If you earn less than $20,000 a year, you can only borrow up to $3,000. If you earn more than $20,000 a year, you can borrow up to 6 times your monthly salary. Once the lender sees that you have borrowed the maximum amount from other lenders, you will immediately decline.
You will also get declined if you fail to provide complete requirements and information.
Do Payday Loans Affect Credit Score?
However small is the amount you want to borrow, you need to make sure that you pay the loan on time as it will be reflected on your credit history.
Moneylenders are strictly mandated to update your credit profile. Therefore, in the future, should you decide to get loans from banks and financing facilities, your credit score will be one of their primary considerations.
Is Online Payday Loan in Singapore Safe?
Licensed moneylenders follow strict regulations. For example, they only allow disclosure of the borrower’s information to the borrower, Moneylenders Credit Bureau (MLCB), and the Registrar. Also, it applies to registered money lenders who offer payday loan applications online.
Can I refinance My Payday Loans?
The common reason for refinancing is to save money on interest costs. Payday loans usually have short repayment terms and are pretty manageable. However, in unforeseen need, some people opt to do refinancing.
To do this, you have to research and find a lender with flexible repayment terms and affordable interest rates.
Where to Refinance Payday Loan?
You can refinance your payday loan from the same lender where you got your existing payday loan. If you apply for a new loan, the lender will use the funds to close the old loan contract. It is easy if you can meet your previous repayments on time.
What are Payday Loans Open Today?
Most money lenders are closed on weekends, but your need to apply for a payday loan may happen on any day. Fortunately, some moneylenders let their borrowers apply for a loan, even on weekends.
Payday Loan Near Me
A payday lender nearest to you is the one you can apply to even in the comforts of your home.
You can apply for a payday loan online in just a few minutes anywhere you are, any day of the week. Once you get preapproved, you can visit the lender’s office to sign your loan contract and get your cash.
Ultimate Payday Loan Borrower Checklist
Be rational.
You may be emotional or stressed, but not reasoning may lead you to bad decisions. Never get a loan from a loan shark. It may help you right now, but it will only drag you more into spiraling debt.
Confirm if the money lender is licensed.
Check the list of Licensed Moneylenders provided by the Registry of Moneylenders.
Use a loan calculator.
Borrow only the amount you need and choose the repayment term you can confidently meet without sacrificing your necessities.
Check the interest rate.
Licensed moneylenders can only charge not more than 4% of interest a month. Higher than this interest rate means you are dealing with a fraudster.
Confirm other fees.
Make sure that your lender is transparent. Every fee must be indicated in the loan contract as well.
Be wary of advertisements.
The lending industry is highly regulated. Licensed money lenders are prohibited from advertising through pamphlets, SMS, or emails. Also, they can only advertise in online and print directories and their own websites and offices. But any other advertising is not allowed.
Understand the terms of the contract.
Before you sign the loan contract, you must ensure that you have read and understood everything.
Get a copy of your contract.
Once you have signed your loan contract, ensure that you get your own copy for safekeeping.
Get your cash in person.
Money lenders are not allowed to issue loans online. Instead, you need to personally drop by the lender’s office to sign the contract and get the disbursed loan.
Over the years, the need for quick cash solutions continues to grow. It led Cash Mart to innovate its loan offers and create a simplified process. As a result, cash Mart’s payday loan application is made available online to accommodate every borrower who wants to make an application at their most convenient time. Try it now to experience the best payday loan in Singapore.