The future is uncertain, and sometimes things don’t turn out the way we want them to. Even in a multicultural and metropolitan destination like Singapore, an unexpected turn of events can cause trouble. Consider this:
A bonus promised next month makes you ecstatic and you start planning how to spend it. Since you have been putting off a much-needed holiday, the promise of the bonus means you finally get to take a break. Dates are marked off and schedules cleared. Travel is booked to lovely Singapore. The family is thrilled, and as the vacation nears . . . the bonus gets delayed a few weeks.
What would you do now? Shatter all your hopes? Shatter the hopes of your family? How can you make it work with such short notice? In short, it may be time to look into payday loans in Singapore and beyond.
What Are Payday Loans?
Borrowing money is often the only way forward when people get in a difficult spot financially. A personal loan is always our first choice. However, if you compare loans online, then you soon realize that getting approval from a personal loan lender requires too much time to meet an immediate need. Consequently, you are now in the market for a payday loan.
Payday loans help in an emergency. Such loans are authorized in a short time, from a few hours up to one or two days. Payday lenders anticipate an influx of funds to pay the loan off. For example, your paycheck. Loan amounts are small. Also, these lonas are issued for a short period of time.
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In a perfect situation, the borrower repays the amount from their next paycheck, ergo “payday” loan. For their fast approval of loans, check out A1 Credit. They usually charge a low interest rate. Their most distinguishing feature is their willingness to loan to people with a low credit score. As a result, this company is able to help people who have had trouble in the past but are attempting to turn things around.
Applying for a Payday Loan
Processing of a payday loan is different than that of traditional loans. The process is mostly online and begins with filling out an application. The lender will contact you almost instantly via telephone, then schedule a meeting to discuss your loan needs.
A payday lender approves and provides a loan in a matter of hours, rather than days. Usually, payday lenders require proof of identity, regular pay stub, and bank account information. Once your monthly income is verified, the lender will directly credit the funds to your bank account.
Before You Apply for a Loan in Singapore
The most important thing you should do when considering a payday loan is to complete a thorough comparison of all the best payday lenders available. Here are a few steps to follow:
- Contact each company and ask for quotes.
- Review the payday loan lenders’ terms and conditions.
- Verify that the moneylender is licensed. For more information, visit the Registry of Moneylenders on the Ministry of Law website of Singapore.
- Narrow your options to lenders most suited to your needs.
- Review feedback from family, friends, and online forums on each lender. Talk to a lender’s previous borrowers online to know more about their first-hand experience with the lender.
- Check for any complaints or frauds registered against them anywhere. This will help in screening out some of the not-so-good lenders.
- You must also pay attention to payday loan lender professionalism. Ethical conduct begins as soon as you contact the company. It is important to work with an ethical lender.
Expectations of Borrowers
All lenders have qualifications they seek in a potential customer. Most of them would want you to be the following:
- Between the age group of 21 to 64 years
- Hold a permanent residency in Singapore
- Have a stable job with an assured monthly paycheck
- Hold a permanent work permit with a guaranteed salary
Wise Words to Heed
Always remember that lenders are in the business of making money. It is your responsibility to ensure that you make an educated decision. Before you borrow, consider these more advanced issues.
- Interest Rates: Know the exact rate of interest you would need to pay. It must be an amount you can afford. Though payday loans are heavily charged, don’t go overboard.
- Loan Repayment: Talk openly on the repayment of the loan amount. Understand the closing aspect of the loan thoroughly to avoid any legal struggle at the end.
- Fees and Surcharges: Ask about any hidden fees such as closing costs. This helps you calculate the total effective cost you eventually have to pay.
A payday loan is named as such because it is supposed to be repaid from your next paycheck. So always make sure that the loan amount is less than your salary. Ignoring this premise of the loan would amount to a financial blunder.
Also, since the loan has to be covered from your next salary, do not mortgage any of your valuables. The unique feature of a payday loan is that it is provided without any collateral in exchange. If any moneylender ever asks for any guarantee, step back. You went in the wrong direction. That company is an unlicensed moneylender likely running an illegal business. Do not fall into that trap.
A Final Note
Now, everything is done. You have double-checked all the terms and conditions, reviewed the lender and their legal status, and verified your responsibilities. As a result, you can go ahead and apply for the loan by filling out their form and furnishing all the relevant documents. If there’s any confusion with the paperwork, do not hesitate to consult a lawyer.
Resorting to payday loans happens when people require hard cash almost instantly. Though you may be short on both time and patience, you must do the groundwork to find the most suited moneylender. Doing otherwise makes a perfect recipe for a financial mishap.
Research everything thoroughly and try to get a loan from a veteran moneylender who has been in the business for a long time. Those who just spring up may vanish even quicker. Stay informed and choose wisely.