As lives become convenient in the city-state, the cost of living also goes up with inflation. You are fortunate if you can always keep up, however, not everyone is as lucky as you.
What do Singaporeans do when making ends meet is impossible? They get payday loans.
There is nothing new about this trend. In fact, getting a loan has been common though many would pretend that they had never tried it even once.
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What is a Payday Loan?
Payday loan in Singapore has been the answer to the needs of those who need to bridge the financial gap. When things seem to go according to the budget, something will come up to drain your financial resources. If you have no emergency funds, then you are doomed.
Good thing you can get online payday loans in Singapore. These loans are unsecured. This means there is no need to pledge any collateral. You can borrow instant cash without fear of losing any of your jewelry, gadget or signature bags.
A payday loan is a cash advance. If your salary is just around the corner but you have run short of cash already, you get borrow small amount of loans. Then you settle the loan on your payday or on the agreed date. Simply, payday loans art like having your salary in advance.
Banks do not offer cash advance, for the simple reason that they take too much time when validating the borrowers’ capacity to pay. Payday Loans are usually used for immediate needs. If the bank asks for too many requirements and approves the loan after a couple of days, this totally beats the purpose.
Why Singaporeans apply for an online payday loan?
Fast Cash Loans
Online Payday Loans are accessible right at your fingertips. Nowadays, everything can be availed online, and the future of lending has nowhere else to go.
With online payday loans, you can get your cash in less than an hour. You just have to simply apply online. You can save time by completing your application online. You can even make an application anytime of the time. Most money lenders will need your Sing Pass, however, they will not ask you to divulge it. Instead, you need to get down to their office and log in your SingPass yourself.
Secured borrowing with MAS Licensed Moneylenders
This is because licensed moneylenders are prohibited by the Monetary Authority of Singapore to get the borrower’s SingPass. Aside from this, licensed moneylenders are also strictly following the MAS lending guidelines.
This means not you will not be charged with an interest rate higher than 4% and there will be no hidden charges.
Another reason Singaporeans get online payday loans is for the convenience of less paperwork. Unlike with the banks, the requirements are simpler and the eligibility is easy to meet.
Builds up your credit score
Most banks have high standards with the credit scores, unlike the other licensed moneylenders. By getting a payday loan you can rebuild your credit history. If you are planning to get a car loan or a housing loan in the future, it is better to build up your credit score first before applying for it.
Unlike getting a loan from loan sharks, getting an online payday loan from a licensed moneylender ensures that your personal information are safe and your good paying habit is properly reported to the Credit Bureau.
There is no need to borrow from relatives and friends
There are some individuals who disgust borrowing money from friends and relatives. Countless relationships have been wrecked by unpaid loans.
Also, some Singaporeans value their pride. They do not want to show other people that they are going through a financial dilemma. This is especially true if the reason for the money problem are vices and luxuries.
How to find a responsible online moneylender?
- Registered with the Registry of Moneylender in Singapore
MAS has a list of registered moneylenders in Singapore. They are highly regulated to protect the rights of the borrowers. Unregistered money lenders or loan sharks usually charge high-interest rates and use illegal ways to collect repayments.
- Must not ask your SingPass Login
If it is needed, you must be the one to input it in the computer. Nobody has the right to access your SingPass.
- Must offer you a loan calculator
Loan sharks would like to keep their borrowers in the dark. They will hide charged and fees aside from the astounding interest rates. Responsible moneylenders provide loan calculators to help their borrowers make better decisions.
Some borrowers sometimes are just focused on what they can borrow but fail to assess if they can handle the payments.
- Do not lend an amount the borrower cannot pay at ease
Loan sharks just lend any amount to borrowers. This is to make sure that they will be buried in debt. This way the loan shark will have a reason to milk you of every single cent you have.
- Gives quotes of rates and terms of repayment
Responsible moneylenders give you the quote of interest rates and applicable fees before they ask you to sign a contract. They will make sure that you are well informed.
- Has a physical office
There are some online lenders who have websites pretending to offer loans. However, they just want to take your personal information and use it for fraudulent activities. Before you start your online loan application, it is better to do some research if the lending company actually exists.
- Has a professional looking website which is updated regularly
Responsible online moneylenders are professional. They make sure that their websites are user-friendly and always secured, this is why it is always updated. Also, keep an eye for grammatical errors and spelling mistakes.
- Teaches about the rights and responsibilities of the borrowers
Borrowers need to know their rights to prevent falling prey to loans sharks. On the other side, they also have responsibilities which come with benefits. If the borrower pays the loan on time, he or she can build up a better credit score.
- Guides the borrower towards financial stability
Responsible moneylenders are interested in making lasting relationships with their borrowers. This is why they want to give financial guidelines to their borrowers. Some of them make blogs to help borrowers gain knowledge on saving, budgeting and investing.
Need an online payday loan?
If you are looking for a responsible licensed moneylender who offers online payday loans, you can easily get it from Cash Mart.
Cash Mart has an accessible website and a team of accommodating loan experts to help you get a payday loan at ease. Feel free to give them a call at +65 6397 4111 or drop by the Balestier Road office.
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