Sometimes life throws a curve ball and you find yourself short of cash or in an emergency situation that requires the need for a small personal or payday loan.
The advances in technology have made applying for these kinds of loan easier than ever.
Payday loans work by using your next paycheck as a loose form of collateral for repayment of the loan. Credit history is usually not an issue nor is there a need for collateral other than assigning your future paycheck.
Applying online for a payday loans is a matter of filling out the application. The requirements include your legal name, an official form of identification, your government issued ID number, your employment information and dates of being paid. While the requirements vary from lender to lender you may be asked if you own or rent your home, if you own a vehicle and of course the amount you want to borrow.
Online payday loan applications require a viable bank account in which to deposit and withdraw funds, a working email and phone number.
The lender then determines if you have sufficient income to repay the requested loan amount. They will verify your employment and possibly run a credit check to determine the risk. Once your information has been verified, they will issue a loan and deposit funds directly to your bank account. Some require documents to be faxed and some don’t.
There are risks to applying online with any form of moneylender. You should always verify they are licensed through Singapore’s Registrar of Money Lenders, the governing body that regulates the payday and personal loan quick cash lenders.
You should also clearly understand the terms and rates of the loan before agreeing to it.
These are expensive loans compared to traditional lenders with rates in Singapore of 25-30% with Annual Percentage Rates reaching as high as the 1000 percentile.
The personal loan is similar to the Payday loan with the exception of a more flexible repayment schedule. These loans offer up to a year for repayment. You will be asked all the same questions as a Payday loan as the lender has to make sure you have ample income and credit worthiness to repay the loan. If you have a poor credit history this usually does not disqualify you but you may be charged a higher interest rate to mitigate the risk of the lender.
The advantage of applying on line is that the loans are approved rapidly due to technology. Income and employment can be verified with a phone call. Your personal information can be checked via computer therefore the loans can be approved much quicker than traditional lenders are able to do often in 24 hours or less. Your loan funds can be deposited electronically as well as the withdrawal to pay for the loan.
Applying for a loan online is easier than ever with technology. There are still precautions that need to be taken to ensure you are dealing with licensed lenders. You should always understand the loan terms including the interest and repayment prior to signing for the loan as personal and payday loans are quite expensive.