If you are considering a payday loan from a moneylender you should read the “Notes for Borrowers” (PDF) from the Ministry of Law Singapore.
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How to get a quick loan, and how long it could take.
What exactly are quick loans in Singapore and how do they work? This guide explains the basics of quick loans, what to think about before you decide to apply and the options that could suit your financial needs.
How do quick loans work?
Quick loans simply refers to loans with quick approval periods. Once an application is made, such a loan is generally approved in a matter of minutes. The approved applicant will receive a credit contract agreement online and once it’s been agreed to, the money will be deposited into the nominated bank account. The exact time taken varies on the loan provider, but is typically faster than that for regular loans.
Who is eligible for a quick loan in Singapore?
Although this differs across lenders, the eligibility requirements for quick loans in Singapore tend to be as follows:
- Be aged 21 or above
- Be a Singaporean citizen or Permanent Resident
- Be able to provide his/her banking history and employment details
- Be receiving some sort of income (specified by the provider)
Quick loans in Singapore versus bank personal loans
Here are some key differences to consider before deciding on a quick loan or bank loan:
- Amounts and terms. Personal loans from traditional financial institutions generally grant larger amounts, for longer terms.
- Application and approval. Personal loans from banks and credit unions usually involve a longer application and a more stringent approval process. While some banks have same-day loans for existing customers, if you apply as a new customer, you’ll generally have to wait a week or more to be approved and receive your funds.
- Bad credit. Few traditional banks offer personal loans to those who have a poor history of managing credit. However, lenders offering smaller, quick loans look more at the applicant’s ability to repay rather than their credit file.
How to apply for a quick loan in Singapore
If you’re in need of a quick financial solution, start by comparing possible loans which are available in Singapore. Once you’ve found one that you’re satisfied with, proceed to submit your application via the provider’s website. You’ll typically need to have a few details on hand to complete your application:
- Personal. You’ll need your NRIC or foreign work pass documentation.
- Financial. Provide financial statements detailing cash flow, asset holdings and debt status (if any).
- Employment. If you’re employed, you’ll need to submit details regarding your occupation and your employer’s details.
- CPF details. Some providers require CPF account details from their borrowers to better assess your financial situation.
- Banking details. Lenders usually need to check your bank statement history as well as your personal account details in order to send you your loan.
What can I use a quick loan for?
This is up to the provider. If applicants have a need for the money and have the ability to repay it, in some circumstances they can apply and use the quick cash loan amount in any way they choose. In other cases, lenders may impose strict criteria that applicants must adhere to.
Be sure to understand the expenses you can cover with quick loans before signing off on your application. In general, quick loans aren’t suitable to cover necessities, repayments on existing debts or long-term financial expenditure so try searching for alternative financing options if you fall in any of these categories.
Are quick loans safe?
It’s important to ensure the security of the lender before providing any form of cash or personal details. Here are a few ways to check if a lender is reputable.
- Check the lender’s site for a credit license, you can also check if it is registered with the Monetary Authority of Singapore.
- Check all the information about fees and rates as well, including what will be charged for late repayments.
- Most lenders operate in the online space, so you can see how secure their application is.
- Look out for online reviews from previous customers.
- If you have questions, give the lender a call and see how easy it is to get in contact with them.
And as always you should read the “Notes for Borrowers” (PDF) from the Ministry of Law Singapore if you are considering a payday loan.
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