If you’re considering approaching a money lender for a small personal loan or a payday loan in Singapore, then the information given here will be useful to you.
We tell you everything there is to know about payday cash advance loans.
What Is A Payday Loan?
Payday loans are small unsecured loans that are given for a short period of time – 30 days or until the next paycheck – for a high rate of interest. They are called “payday” loans as the assumption is that you would be able to make the repayment of the loan on your pay day – when you receive your next wage. The money lenders don’t worry too much about someone’s credit history while offering them these loans.
What they are concerned about is your current capacity to pay the loan back in time.
So, a money lender would want to know about your current sources of income.
Do You Need A Payday Loan?
Well, that would depend on your financial situation. If you have an urgent need for money, whether it is for a sudden medical emergency or an expected expense, and do not have a great credit history, then your chances of getting a personal loan from a bank would be quite low. In such a situation, you’d be better served by approaching a money lender for a payday cash advance loan.
With payday loans, you make the payments only when you receive your monthly wages and have cash in hand, at the end of the month or within 30 days, depending on your agreement with the payday lender. Essentially, you pay as you earn – which is why these loans are so useful.
Is It Hard To Apply For A Payday Loan?
Not at all! It is actually very easy to apply for payday loans – which is such a relief, especially when you really need the money and fast, at that. It takes hardly a couple of hours for your loan application to be approved, as long as you’re able to validate your source of income. Essentially, what a money lender looks to see is if you have a regular job or not, he will want to see proof of your employment status and identity. A recent bank statement will also be asked. Indeed, you will get approved for the loan as soon as your regular source of income is verified by the money lender.
Are There Any Drawbacks To These Loans?
One of the biggest issues people have with these types of loans is that they have to be paid back within a few weeks or a month.
They are basically short term loans, and the interest rates charged are quite high as well.
So, if you fail to find the financial resources to pay these loans back in time, you will probably end up in a financial mess. Sure, the loans will be rolled over by the money lender, but that would only mean that you will find yourself having to pay higher interest rates on them. So, never take a payday loan unless you are reasonably confident about your ability to pay it back in time.
Should You Apply For A Payday Loan In Singapore?
Yes, if you need money urgently and are confident about your ability to pay the loan back in quick time, it makes sense to apply for a payday loan in Singapore. The biggest advantage of payday loans is that they don’t require a credit check, so you can get them even if your credit history is not all that great. Also, these loans are easy to get, as long as you have a regular source of income.