There are times when people find themselves short of cash or in an emergency situation where they need a loan immediately.
In Singapore there are many options available for people to receive an instant cash loan. Many of the large banks offer personal loans and lines of credit so you have instant cash available when you need it most.
Other non-traditional lending institutions offer instant cash loans at reasonable rates for short terms.
Traditional banks offer personal loans and lines of credit for which you apply using the traditional means of credit discovery, verification of income and analysis of debt to income ratios. This requires you provide documentation to the banks and they then verify it and issue you a line of credit that you can access instantly from almost anywhere in the world. While this process is not instant, once established your access to your line of credit is.
In order to qualify for these types of instant cash loans traditional lenders require excellent credit, an account in their bank and sometimes require collateral to secure the loan.
Non-traditional lenders are available in Singapore for instant cash loans too.
These lenders are often referred to as Payday Loan lenders. They will typically loan a small amount of cash against your next paycheck. The application process is often very rapid and requires only proof of residence, a viable bank account and employment verification. The down side of this type of loan is the very high interest rate charged and large penalties if not paid in time.
Singapore also has licensed money lenders who offer personal loans. These loans are similar to the Payday Loans but allow for longer terms and repayment options. They have the same requirements as Payday lenders of proof of residence, a viable bank account and employment verification. A personal loan is done from a licensed money lender.
Cash advance loans are also similar to payday loans with high interest rates and are based on your income and paydays. The applications are simple and straight forward as is the method of collection with the lender usually requiring post-dated checks or permission for automatic withdrawal from your bank account on paydays. These are similar to personal loans and offer more flexibility in repayment terms.
Non-traditional lenders generally do not require collateral against the loan other than an agreement to for automatic withdrawal or some sort of repayment method that insures they will receive their money.
Singapore offers a short term loan solution known as caveat loans for businesses suffering a cash crunch. These loans are virtually instant or within hours, offer flexible payments and credit checks are not always required.
Instant loans are great for emergencies but should be carefully considered before signing any loan documents. Even traditional lenders have higher interest rates for their instant cash loans or lines of credit and non-traditional lenders mitigate their risk in lieu of collateral by lending at extremely high rates of interest. Applying for an instant cash loan in Singapore is easy to do with limited assets or poor credit but does come at a high price.