Differences Between Payday Loans Vs Credit Card Cash Advance

In Singapore when you are researching and making a comparison between payday loans and credit card cash advances, you will get confused by their different offerings.

Many credit card companies are increasing the competition as they compete against different lenders and amongst themselves to give fast cash loans to individuals.

In Singapore, it is easy to get a loan with the various schemes for the various package loan facilities. Licensed moneylenders, banking institutions and variation of loan companies offer varying loan types to suit their different consumers. To get a clearer picture below are differences between the credit card cash advances and payday loans.

Payday Loans

When you generally look for a personal loan, you may have come across many different words used interchangeably. These words may include; personal loans, Payday loan, fast loan and cash advance. A payday loan is a type of a personal loan.

Payday Loan Definition
This is a short-term loan that enables individuals to borrow a loan amount depending on their monthly income. There is a minimum cap on each month’s income depending on the rules guiding moneylenders. This cap also applies to individual borrowers who have a higher monthly salary which allows them to borrow more cash.

Payday Loans
Also referred to as personal loans and payday advances – is a version of an unsecured loan. This means no collateral is required to take out this loan type. Payday loans are normally approved depending on your income. They also come tailored to an individual borrower’s ability to repay in a given timeframe. Every now and then payday loans are paid back in several split payments. Even then, the entire loan amount is to be repaid with the fixed interest.

Although licensed moneylenders offer this loan type, the interest charged varies accordingly. A notable advantage of taking a payday loan is the adjustable or negotiable repayment plan. This greatly helps a borrower with regards to money management. This makes this loan type a better plan for individual’s finances.

An additional advantage that licensed moneylenders present their customers is simple policies on rates charged. Interest rates charged on loan amount taken with no hidden charges.

Credit Card Cash Advances

The credit card cash advance is issued to an individual depending on their accessible credit limit instead of your monthly salary. The credit card advance is normally treated as though it were a purchase made using the credit card. The credit cash advance repayment terms and conditions are often times strict.

Cash advance on your credit card might or might not give you a deal which is better than a payday loan. This is however dependent on your credit ratings and if you are creditworthy. A number of credit companies may charge interests that are higher on cash advances than the payday loan given by moneylenders.

Cash loan advance comes with the monthly credit card bills and it needs to be reimbursed accordingly. The interest rate is compounded each day and a substantial application fee is required when you make a loan request.

This credit card cash advance has hidden charges on the principal amount which might be late payment fees, withdrawal fees, transaction fees, card fees, banks service fees and setup fees. These charges are often not known to the borrower.

In addition, a lot of the credit card companies need you to make repayment on all the existing non-cash balance onto the credit card cash advance.- these are normal purchases you will have made using your credit card. This for a borrower means that you have to pay up this amount first with a lower interest. This is the cash advance amount outstanding is untouched and it will keep increasing and the interest compounded.

If you have ever received credit card cheques in your mailbox from credit card companies, then you need to know that these cheques are always treated as cash advances. Although these cheques offer you big sums of money, the misconception that many people have is that they come with the accompanying negatives. Most people tend to think this is an easy form of credit without them realizing that this loan type comes with multiple charges.

Credit companies in Singapore put a ceiling on the maximum loan amount depending on your credit limit. Cash advances often attract heavy interest rates and finance charges starting from the first day the loan is taken till when it is fully repaid.

The cash advance has its advantages where the borrower is able to request for loan transfer into their account. The borrower is also able to easily make withdrawals at the credit company’s ATM. Some credit card companies offer loan applications through the phone either by SMS or cash-on-call.

As a rule, you can avoid the huge charges when you make payments on the credit card statements each month. Do ask the card issuer to clarify for you how the interests are worked out. Ask them to also provide you with a working of an exemplary loan amount.

Evaluation And Results: Make A Wise Choice

The best way a borrower can go-about these loans. Payday loans may at times have high-interest rates compared to cash advances. This is because moneylenders take a high risk of borrowers defaulting.

Nevertheless, when you have been a regular customer and have a great history of timely payment, licensed moneylenders will often give you a better repayment policy or better rate. You can also discuss with loan officers for a convenient repayment plan suitable for you.

Payday loans have great flexibility in regards to repayment plans. When the repayment time period is taken into consideration, you are better off taking a payday loan. Payday loans, on the other hand, have no hidden charges. This allows lower-income individuals who cannot access credit card to access a loan.

Based on the loan requirements for your loan type, make the right and suitable choice. Regardless of the loan type, you are looking for, do a thorough research, read through reviews and also check out what the competition may be offering.

Pros And Cons Of Payday Loan

Payday loans are unsecured, short-term loan type that attracts high-interest rates. This type of loan can be used to cover bills, rent, and other urgent expenses that cannot be off until the next salary. Payday loans are good sources of quick cash in case you are faced with financial emergencies. In Singapore, you can access a payday loan if you have a stable source of income and a bank account.

Unlike traditional bank loans which offer 2-3 times of your monthly salary, payday loans allow a maximum amount of half the monthly salary you get.

There are ranges of pros and cons that are associated with the payday loan. Some of which include:

The Pros Of Applying For A Payday Loan

Payday Loans may not be that different from the traditional bank loans you have access to. The main difference is payday loans are designed for a short period of lending i.e. under a month and then you repay back the loan. Payday loans are great when you repay them back before the agreed due date. They can also help get you through a passing cash problem.

  1. Simple Online And Fast Approval Processes

Money lenders have made it possible for individuals to apply and also have the loan approved all via the internet. This offers a customer a 24-hour type of customer service. This medium ensures quicker transfer of information and approval. Therefore you are able to attend to your urgent commitments within a short period of time upon application.

  1. Cash Is Made Available Fast

Payday loans offer you quick access to cash. It normally takes less than 24 hours to process and disburse the money to your account. Traditional bank loans, on the other hand, take a number of working days for you to receive the cash.

  1. No Collateral Required

Payday loans do not need you to have any form of security, what you present to the moneylender is 3 months current payslip and bank statements. Thus you do not need to put in any of your property as security.

  1. Licensed Moneylenders Offer This Loan Facility

Although you can access loans from unlicensed moneylenders, it is, however, advisable to deal with moneylenders that are certified. Licensed moneylenders follow set lending rules, unlike loan sharks who answer to no authority. Licensed moneylenders are issued with licenses by MAS.

  1. Less Paperwork

Credit checks and other paperwork are not needed for your loan to be approved. Traditional bank loans normally take long to approve your loan since they do extensive credit checks. This makes it possible for more Singaporeans to easily access loans even when they have a low credit score.

The Cons Of Taking A Payday Loan

  1. Expensive rates

Payday loans attract high-interest rates almost as much as those charged on credit cards. This can be a drawback especially when the loan taken is a small loan which is payable within a short period. These rates applied on a loan which has a short duration i.e. it could be bi-weekly or weekly compared to the annual scale. The rates are usually higher since the money lender is taking risks and a financial liability.

  1. Possibility Of Recurring Debt

When not careful, taking a payday loan can potentially ruin an individual’s financial future. You may have finished repaying a previous loan but come mid-month, you find that you need urgent cash for bills. This may prompt you to apply for a second payday loan. When this is done through several months, you will find yourself piling debt into more debt. This also leads to financial uncertainty as you will find yourself in the never-ending financial cycle.

  1. Non-Payment Charges

There are fees that you will be charged when you miss making a payment. This is often stated in the loan contract. Failure to make payments or making late payments can lead to you repaying more money than is necessary. This is so when you have taken a small loan amount which is payable in a short period.

  1. Possibility Of Ruining Your Credit

Even when money lenders do not do extensive credit checks, they keep records of non-repayment and late loan repayments. Falling behind in making payments for your outstanding payday loan can ruin your credit.

  1. Not A Good Long-Term Way Out

This loan type should not be treated as the only source of fast cash when you are in financial difficulty. There many other solutions to your financial problem. Risking your future paycheck is not one of them. Missing a payment or late repayment is expensive and can even put you into more debt instead.

In Closing

Taking out payday loans will still have an effect on the amount of loan you may borrow from banks. This is especially so when you plan to take a bigger loan an example being the home loan.

When used wisely, payday loans are lifesavers and will offer you the much needed financial backing. This is more so when your savings end up being pillaged by daily expenses and bills. When used badly, payday loans will be a source of your misery. This loan type will put into a never-ending vicious financial cycle. This for you the borrower will mean each cent you earn goes into repaying your creditors which includes payday loan lenders.

The take away is that you need to treat payday loans as an alternative to the last result when you require some fast cash. When an urgent need arises and you must take a payday loan, make certain that you do so since you actually require money. Also, ensure that you can and will reimburse it within the set time period.

On time repayment of your outstanding loan will ensure you do not ruin your credit. It will also help you avoid being charged the late repayment and the non-payment fees. This fees can make you end up paying more than you needed to should you miss a payment or even make late payments.

Is A Payday Loan Right For You?

Living in Singapore, having cash emergencies is not unusual. You forgot about budgeting for this month’s rent. Maybe you need to make small payments on your car. These issues came up suddenly, at a time when you didn’t have any money. And then you thought of a payday loan.

A payday loan, a payday advance or cash advance loan, is a short-term loan. The loan amount is usually small, and the loan is unsecured. Payday loans are popular with Singaporeans. This is because applying and the requirements are simple. Also, the loan approval time is quick, and so is disbursement.

As the name implies, a payday loan is one that you have to repay on your next payday. Your payday could be the week after you take the loan or in a month. For emergency cases, payday loans are a great option. Despite their usefulness, their interest rates are high. Their rates can even be higher than the interest on typical bank loans. This is because they are short-tenure loans. This makes payday loans dangerous for you, especially if you don’t plan and use them well.

How, then, do you know if a payday loan is a right thing for you? Here is an outline of what you should and shouldn’t do with a payday loan. Use this to guide your decision when considering applying for a payday loan.

What You Can Use Payday Loans For

1. You Can Use A Payday Loan For Emergencies

You cannot plan and account for everything. Every once in a while, life throws something at you that you just weren’t expecting. As you were rushing to get to work, your car didn’t start. You don’t have the money to call the plumber, so you don’t have running water in your house. Extra curriculum costs requests from your child’s school. A medical situation has just come up that needs urgent attention. You can’t wait for your next paycheck to pay for all of this. Getting a payday loan is just the thing to set off these emergency costs.

2. You Can Use It As A Temporary Cash Flow

Sometimes you run out of cash before you have settled your monthly expenses. Sometimes, even the best budgets are overdrawn. For instance, you receive your salary. You have planned how much you will save and how much you will spend. Then other things come up. The money you kept for groceries has to go for paying the plumber. The money for utilities is converted to pay for an important subscription. When these things happen, you run out of cash. Or the cash you have just isn’t enough to do everything.

Getting a payday loan or a cash advance can tide you over to the next paycheck. A payday loan allows you to carry on as you would with your paycheck for the month. Since payday loans are small, you can get one and repay it with your next salary. Limited funds can’t keep you from living normally again.

3. When You Need Funds Urgently

Payday loans may attract high-interest rates, but they are very convenient. Bank loans, or getting a new credit card, may be cheaper than payday loans. However, they take too long process. The application process is lengthy and rigorous. The approval process can take weeks before you can get your cash.

So what if you need the money for an emergency with a deadline? The best option is to get a payday loan. Also, moneylenders can be found online. They also stay open after banks have closed. Your loan application can be processed and approved in minutes. Cash disbursement can happen within the hour. This makes payday loans most suitable for urgent occasions.

When You Shouldn’t Use Payday Loans

Payday loans are good for any number of purposes. However, there are instances where it would be wise NOT to use payday loans, such as:

1. Using A Payday Loan To Make Payments On Existing Loans
This is a very dangerous habit, and you would do well to stay away from this. Payday loans are notorious for their high interest rates. This is because the loan is unsecured and is a short-term loan. The lender is the one at risk, so that interest has to be high. Borrowing to pay off another debt will just put you in even more debt. Falling into a debt cycle like this will harm your opportunities of keeping a clean credit report. You will also get into the habit of defaulting on repayments. It wouldn’t be wise to default on a payday loan repayment. If this seems like it could happen, meet with your lender and discuss on a repayment plan that is suitable for you.

2. Using Payday Loans As A Supplement To Your Income 
The standard of living in Singapore is high. It is true that you may need a loan at some point in your life. However, if you keep getting payday loans to help where your income can’t cover, you are making a mistake. Payday loans are not meant to be a supplement to your income. They are just a short-term solution to an urgent financial need. If you constantly borrow payday loans to pay for rent or utilities, maybe you need to reconsider how you are living and make the necessary adjustments.

3. Using Payday Loans To Make Purchases That Aren’t Important
It is important for you to consider what a payday loan is costing you before applying for it. The interest on these loans is high, so you shouldn’t borrow one to spend frivolously. Always budget your expenditures and stick to them. A Payday loan should only be used for what you need, not what you want.

You must understand that a payday loan is a short-term loan, and is only good for emergencies. Be sure that you can repay it with your next salary without going broke. If you need a larger amount of money, a payday loan may not be right for you. If you think you won’t be able to repay with your next income, check out other short-term loans instead of applying for a payday loan. It may not be right for you in that situation.

Top 10 Benefits Of Payday Loans

Payday loans are handy for getting out of sticky situations. However, many Singaporeans do not know about the benefits of getting payday loans. Singaporeans, as a general rule, do not like getting loans. Some turn to it as a last resort, because they are tired of borrowing from family and friends. A payday loan is a fast solution of cash, but a lot of people do not know how to go about acquiring such a loan.

A payday loan is a small loan. It is also a short-term loan that you can get to settle some monthly bills. They are most effective when you don’t want to miss any payments or explain about post-dated checks that have bounced. If you have any financial emergencies that require instant attention, a payday loan is just the thing for you. There are financial lending institutions in Singapore that offer payday loans like ours.  There are many benefits to getting a payday loan.

The Benefits Listed Here Are The Top 10 Advantages Of Getting A Payday Loan

These include:

  1. You Can Apply And Qualify Easily
    Unlike with other, larger loans, it is easy to obtain payday loans. Whether it is a payday loan or a cash advance, you will qualify for one easily. This is because the requirements for getting a payday loan are simple. You just need to have an adequate monthly salary. You also need to have a good loan repayment history. Since payday loans are to be repaid when you get your next paycheck, it is important that your repayment history is good. Once these two particulars are covered, you can get your loan.
  2. Your Personal Information Is Kept Confidential
    You don’t have to be afraid of your banking details getting out. All information provided to the lending institution is kept highly confidential. They are not authorized in any way to give your personal or banking details to anyone. You can apply for a payday loan knowing that your details are safe with them.
  3. The Loan Application And Approval Process Are Fast
    Personal loans from banks are the most common type of loans that Singaporeans apply for. However, the application process is long. The approval time is also quite long. It can take up to weeks for your loan to be approved. With payday loans, this is not the case. The application process is brief, and your application can be approved within minutes. Most moneylenders will even give you a guarantee of one hour to get your money once they deem you qualified for it. This makes payday loans great for emergency cash situations.
  4. Payday Loans Are Flexible
    Knowing the tenure of a loan helps you plan better for repaying it. Payday loans are loans with short tenures, i.e. short-term loans. However, they are flexible in that you repay when your next paycheck arrives, and not before.
  5. The Amount You Can Borrow Depends On Your Monthly Income
    At any given time, you can only borrow as much as your monthly income allows. While some may see this as a disadvantage, it actually works to your advantage. Repaying loans is easier for you this way. It also serves as a deterrent, stopping you from borrowing more than you need. Furthermore, you effectively avoid falling into a debt cycle.
  6. There Is Legislation In Place That Protects You As A Borrower
    This is an important fact that many Singaporeans do not know. The government has put in place rules that protect you from unscrupulous lenders. Some loan sharks go about, giving loans and charging exorbitant interest rates on the loans. There are laws that in place to keep you from getting high-interest rates. It is necessary that you know these laws before going for a payday loan.
  7. You Can Use Your Loan For Anything
    Typically, a payday loan doesn’t have any limitations on what you can use it for. For example, bridging loans are a specific type of loan used for obtaining property or selling/buying a house. Payday loans can be used for anything. That makes them a good option when you need instant cash to solve a problem.
  8. Payday Loans Are Convenient
    Getting a payday loan is very convenient. This is because most lending institutions (that are not banks) stay open after normal banking hours and open on weekends.  These factors make them easy for you to apply for loans and get them. They also provide you with a quick solution in case of an emergency.
  9. They Are Very Useful For Emergency Cases
    Circumstances that require money can crop up at any time. They are emergencies when they occur when you do not have any money at hand. Whether it is the rent, credit card bills, or to pay off a debt to a friend, payday loans are good for that.
  10. There Are Caps On Fees And Interest Rates
    The government has placed limits on how much payday loan lenders can charge borrowers. There is a maximum interest rate that they can charge you. There are also limits to the fees that can charge. Fees may even be limited to a one-time administrative fee and a fee for late repayment.

Payday loans are the perfect solution if you need to settle some bills without defaulting. A payday loan is also safe to go for if you want to keep your credit score clean. If you are considering getting a payday loan, you should think of the benefits. Payday loans are easy to obtain, and they are flexible when it comes to repaying.

Rules have been set in place to protect your interests. These prevent payday lenders from charging you high rates or fees. Most importantly, they are the best thing to get to settle immediate financial needs. With payday lending institutions everywhere, you can conveniently access one with a loan. Remember these pros when you want to get a payday loan.

 

How Finance Companies Help SMEs Obtain Funds

During the tough times, small businesses often struggle to remain profitable amidst rising costs. A sustainable business needs to be profitable since without profits it cannot develop or transform. The possible methods that can be used to ensure increased profits are either cutting costs or increasing revenue.

Increased competition and world economic downturn have posed a major challenge for SMEs who are struggling to remain profitable. Many small and medium-sized enterprises are not given the attention they need for their sustained growth, yet they are a very important part of a country’s economy. Small and medium-sized enterprises (SME) are the biggest employment base of a country and are always employing new employees increasing the job creation and training aspect of an economy.

In an effort to increase revenue, SMEs face the challenge of financing. Most of the SMEs in Singapore lack the capital to help increase their production capacity, as well as improve branding marketing for their products both locally and overseas. Access to efficient and reliable financing channels is very important if the SMEs are to succeed. Singaporean SMEs face the challenge of unfulfilled customer payments which were as result of the slowing economy. This is made worse as some have been operating without any form of insurance to alleviate such risks.

Finance companies were always under strict business regulations that have made it difficult to offer financial services to small and medium-sized enterprises. This has negatively impacted the growth and expansion of these enterprises, especially during the slow economy. These enterprises need to make profits which are to help sustain them but with no funding, they are unable to expand and grow sustainably.

Monetary Authority Of Singapore (MAS)’s Announcement

Monetary Authority of Singapore (MAS) recently made an announcement that it will ease finance companies in Singapore business restrictions. This was aimed at helping small and medium enterprises (SMEs) have access to financing.

This announcement was made following the central bank announcement, on its taking measures to offer stronger financing channels for upcoming Asian growth companies. The central banks financing was also aimed at investing in supporting technology infrastructure in support of the Future Economy’s recommendations.

The set regulatory changes will help SMEs access financing without collateral, therefore, the business clients will be ready to contract more easily. This also allows SMEs to be able to borrow larger amounts of loans without offering any collateral.

Impact On SMEs Trying To Obtain Financial Help

Owing to the Monetary Authorities of Singapore (MAS) announcement, many SMEs will be able to restructure their business and increase their investment capabilities to help them become more efficient and effective. This will also enable SMEs to borrow money to help meet their working capital requirements.

The financing channels will enable SMEs to review how they operate their businesses so they can be more productive and competitive.

Small and medium-sized enterprises (SME) will also be able to clear all pending business transactions and pay their business clients and help strengthen their business ties.

SMEs are the largest employment base in Singapore, their expansion and growth will continue creating jobs for the population, therefore, making major positive economic impacts on a country’s growth index.

SMEs will now be able to access larger amounts of loan funds, which will help increase their investing power, hence increasing the employment rate, increase production and make goods and services available in the Singaporean market and the world over.

Reasons Why Business Financial Help Is Needed

The MAS announcement has come at a time that SMEs needed the financial channels to help support their business sustainability. Since SMEs are able to access loans without offering any collateral they are able to generate more profits.

Business expansion/outlets expansion/move to a new office

The availability of financial support for SMEs will help support their business expansion plans. Such a funding move will make it possible for SMEs to establish themselves in the local and international market hence opening up of business outlets which will help grow the Singaporean economy.

When small and medium enterprises (SME) access financing, they are able to embark on financial organization capabilities which will ensure better management of their business decisions and investment plans.

Tide over business delayed transactions

The loans extended to SMEs will help provide working capital. Small businesses will be able to complete all pending business transaction, therefore, reviving business for their clients as well as their business. A good business atmosphere will ensure the different business venture are working together, supporting each other in the growth and development of their businesses. Production will also be increased hence more revenue is realized.

Required Bulk Purchases To Facilitate Business Needs

Bulk purchases by the small and medium enterprises will ensure their products are readily available in the market. Increased production will help positively impact the economy during the crisis period. In addition, with the extra funding, many businesses are able to source investment and collaboration overseas. Most of the Singaporean economy is supported by the SMEs; therefore the availability in the market will help address the demand in a market.

– Important Impact On Singapore’s GDP

SMEs are very important to the health and stability of any country’s stability. The small and medium sized enterprises are the greatest source of employment base, therefore, providing the majority of Singapore’s goods and services. Supporting and nurturing SMEs ensures there is high employment rates, sustainable growth for the small and medium enterprise and continuous expansion of the business venture.

Conclusion

Singapore’s small and medium sized enterprises (SMEs) have been affected greatly by the economic downturn. These enterprises have also been impacted due to the limited access they have to access loans and financing channels.

Many finance companies in Singapore were previously not extending loans to small and medium sized enterprises due to the risk involved. The recent announcement made by the Monetary Authorities of Singapore has offered the support and necessary channels needed by SMEs to grow and expand their businesses. The ease in the business restriction made on finance companies will enable them to extend loans without collateral to SMEs.

Do You Know The 10 Types Of Loans Available In The Market?

In Singapore, there are various types of loans for a borrower to access the banking and other financial institutions. There are loans for renovation for your new home, personal loan when you need fast cash for your personal needs, education loan to allow you to pursue higher education or payday loan to tide you over until your next payday. This makes the choice of the right loan type for your needs rather difficult if you do not know their different uses.

Below is information about the different types of loans found in the Singaporean authorized lenders, the benefits these loans have for a borrower and how each loan is tailored to suit your needs.

Personal Loan

In Singapore, a personal loan is the most popular loan offered by the approved moneylenders. A Singaporean personal loan has a lower rate compared to home loans. Individuals normally apply for these loans to help pay for a wide range of their financial commitments, including debt consolidation, electronics, car loans among others.

Benefits Of Personal Loans

  • You can borrow loan amounts up to 4 times of your monthly income
  • Personal loans have fixed interest rates
  • This loan has an early repayment alternative.
  • The monthly repayment amount is the same every month

Payday Loan

A Singaporean payday loan lets you borrow a small sum of money at a high percentage rate. This loan needs to be repaid in a span of thirty days or until your next take-home earnings.

Benefits Of Payday Loans

  • This loan is flexible and convenient to a borrower
  • Payday loan has fixed interest rates
  • The loan application is approved fast
  • It is easy for a borrower to qualify for a payday loan.

Foreigner Loan

A Singaporean foreigner loan is for foreigners who hold a valid work permit and employment pass. Once you provide the required security it is used as collateral against the borrowed loan amount.

Benefits Of Foreigner Loans

  • This loan type has a low-interest rate
  • A borrower receives the required loan amount fast
  • When applying for this loan type, the number of documentation needed in order for your loan to be approved is very minimal
  • A borrower is not subjected to detailed credit records checks.

Business Loan

Business loans in Singapore are financial resources extended to different kinds of businesses by a financial institution, individual or a bank. This loan type often needs to be reimbursed within a specified date and includes an agreed upon interest amount. The requirements of the borrower, the interest rate, loan amount and the repayment date vary from one borrower to the next.

Benefits Of Business Loans

  • Business loans are easily accessible and convenient for a borrower
  • This loan type is a short term loan used to solve a businesses’ cash flow problem
  • Business loans are often approved faster compared to loans offered by banks.
  • This loan type offers varying repayment options.

Instant Cash Loan

Singapore’s instant cash loan allows an individual to make use of a loan amount which is often subject to their income. This loan type has a very high-interest rate and it is often extended to individuals who are facing financial emergencies and so they need quick cash fast.

Benefits Of Instant Cash Loans

  • A borrowers credit score is not needed to qualify for a loan
  • With proof of income, you can qualify for this loan type
  • The loan amount a borrower can take is up to 2-4 times of their monthly income.

Cash Advance Loan

In Singapore, cash advance loans are similar to payday loans in that you are able to borrow a given amount of money from a certified lender before your next paycheck. Although this loan type has a very high-interest rate, most people qualify for this loan.

Benefits Of Cash Advance Loans

  • You can access this loan type without putting in collateral
  • The approval rate for this loan is very high
  • A simple and easy application and collection loan process are used.
  • Fast and quick cash is made available to a borrower.
  • The loan amount you can access is dependent on your monthly earnings.

Education Loan

Student or education loan is intended for helping students pay for their university tuition, books, and living expenses. The repayment plan starts soon after a student graduates and the interest rates are often very low.

Benefits Of Education Loans

  • Education loans have a very low interest-rate
  • This loan type is easily approved
  • Nearly all students qualify for the education loan

Renovation Loan

Singaporean renovation loans are intended for borrowers who want to fund their home or apartment improvements.

Benefits Of Renovation Loans

  • The loan has a large loan limit
  • A borrower can choose between a variable and a fixed interest rate.
  • This loan type allows a choice of the preferred repayment method; whether to make monthly or weekly repayments.

Vacation Loan

Vacation loans are exclusively used to pay for a vacation.

Benefits Of Vacation Loans

  • Money is made available to you right away
  • There are no hidden charges
  • The repayment period starts soon after you are back from your vacation

Short Term Loan

In Singapore, the short term loan is also referred to as caveat loans. This loan type is aimed at helping businesses fix their cash flow issues and be able to straighten out their finances.

Benefits Of Short Term Loans

  • Application fees are not required
  • The loan is flexible and easy to access
  • The loan approval period is within hours
  • Credit checks are required.

Conclusion

Singaporean legal money lenders offer various loan types for their borrowers. The instant loan approval Singapore makes access to quick cash very convenient for any borrower. Once you identify your needs and the loan type that will suit your financial needs, approaching a legal moneylender in Singapore for assistance is very easy.

Most of the loans offered by the lenders require minimal documentations to help you have an instant loan approval Singapore. The various loan types’ help an individual meet the different needs they may have for renovation loan for home improvements and student loans for funding their education.

Pros And Cons Of Debt Consolidation Loan In Singapore

In a pile of unresolved debts? You may wish to consider debt consolidation loan.

Debt consolidation is a form of loan taken to pay off many other consumer debts. This type of loan can be secured with collateral or unsecured. Multiple debts are pooled together into one large loan debt. Debt consolidation loan Singapore has a more favourable way for you to pay off your debt due to the lower interest rates, therefore, lower monthly contributions. These form of loans do not get rid of your debt; they just transfer all debt to a different lender as a lump debt. Many people in Singapore are currently under a lot of financial obligations of meeting day to day expenses as well as other urgent expenses like car loans, home loans, business loans and renovation loans.

Debt consolidation can be a good payment plan for individuals who may have challenges managing their different loan debt types they owe. The challenge faced by many Singaporeans is that the different loan debts they are servicing carry varying payment interest rates. This makes the tracking and control of expenses rather hard for them.

In Singapore, there are several credit unions that offer individuals a chance to access the consolidation loan facility. This loan type helps take away a lot of stress and financial strain and you are able to pay off all your debtors and focus on repaying a single loan amount. As you look for debt settlement options, below are pros and cons of consolidated loans that will help you in deciding whether this form of loan is best for you.

Pros Of Debt Consolidation

You only need to make a single payment. In consolidating all your debt, your monthly contribution is reduced to a single payment which minimizes the chance of late or missed payments. Additionally, by dealing with one creditor means writing only one check thus saving you a lot of time and energy.

In understanding the interest rates on other loans and credit card debt, an individual is able to consolidate their debt into low percentage rates, making it easy to pay down debt and truly make noticeable progress.

When consolidation loans are well managed an individual can end up saving some money in their budget instead of spending the entire monthly earnings on bills.

Since you only make one payment it will mean your monthly payout is lower. The interest rate is lower, making the loan repayment period less hence faster debt payment.

When a borrower is hardly making payments every month, debt consolidation loan will assist in your catching up on your payments and even getting ahead. This will help take off the financial stress off your finances.

Cons Of Debt Consolidation

There is the potential of getting into more debt. Having a single payment will mean more funds are available to you. For some individuals especially gamblers, however, it means having more to spend thus getting themselves further into more debt.

Even with the lower interest rates, there is a possibility of taking longer to repay your debt. This, in the long run, will mean you pay greater interest. In order to avoid this, you can stay focused and pay off your debt as fast as you can.

By failing to stick to your payoff plan, you might end up with more debt than before. In some occasions, some creditors agree to remove penalties and any added interests once you consolidate your debt. However, when you fail to make payments as agreed upon, the penalties and interests will be brought back.

Although a borrower has received some relief off of their finances, does not mean they have got hold of their spending habits. To avoid getting back in debt, the borrower can learn new money management skills which will go along way in cultivating better spending habits.

Where Can You Get Debt Consolidation Loan In Singapore

Singapore was one of the countries affected by the bad economy, which saw an increase of borrowers. Following the recession, many Singaporeans have been submerged in debt which they want to be paid off within the shortest time and at lower interest rates.

The introduction of the debt consolidation facility has been viewed by many as a God-sent intervention to help them pay off their debt. This debt repayment plan helps in tracking the monthly payments, which have been reduced to a single repayment amount. In addition, lower interest rates make the repayment period less than it was with the multiple creditors.

In Singapore, several financial institutions offer the debt consolidation loan facility. These include:

Banks

Singapore’s debt consolidation plan is designed to bring together loans that are over 12 times more than your monthly income.

Only Permanent residents and Singaporeans, with outstanding debt balances of 12 times more than their monthly earnings can apply for this loan facility.

If you decide to switch debt consolidation plan to other banks, you can only do so three months after the approval of your latest debt consolidation plan.

Once in a Debt Consolidation Plan, all your existing unsecured debts and credit cards are suspended. You will, however, be issued with a revolving credit offer corresponding to one month’s salary.

Moneylender

Like the banking institutions, moneylender’s debt consolidation plan is open only to Singaporeans and permanent residents.

You are required to be between ages 21 and 65

You are required to earning a minimum income of above S$20,000 per year

You are required to produce your identity card during application.

Conclusion

Debt consolidation loan in Singapore is a type of loan that combines all your existing loans in a single loan. The single repayment means you are able to manage your finances easily and even have some extra for your saving every month.

Debt consolidation loan helps you make lower monthly contributions with low-interest rates. This helps you only focus on one monthly contribution and thus have less financial strain. Debt consolidation loan Singapore helps negotiate with your creditors for penalties and interests to be removed, making your loan amount lower. In Singapore, banks and moneylenders offer this loan facility.

How Payday Loan Works And Where Can You Get It

A Singaporean payday loan is aimed to be a short-term borrowing service available to salaried individuals. The loan repayment period is often arranged over days before your next take home earnings but can also be spread over several months. Payday loans are good sources of quick cash in case you are faced with financial emergencies. The payday loan has fixed interest rate which is often higher than other most of the other borrowing loan alternatives. This loan type is a convenient way for an individual to have some extra cash for their day to day use before their next paycheck. When a borrower defaults in repayment of the payday loan, the loan amount taken can quickly grow into large and hard to repay the loan.

The payday loan application process is fairly simple and once it is approved, usually after you have submitted all the required loan application documentation, the money is disbursed to your account within 24 hours. Payday loans when not properly handled can hurt your credit score. When lenders see payday loans, it already shows them that your finances are already strained. Although standard credit reports do not show short term loans, it is advisable to ensure you repay your payday loan as soon as possible. This will also prove to lenders that you are a responsible borrower. Defaulting on payments can jeopardize future attempts at taking mortgages or loans. Payday loans are often time unsecured loans

How Does Payday Loan work?

Singaporean payday loans are aimed at offering quick cash to individuals who have financial commitments to attend to. The amount, once approved is transferred to your account and at the end of the month, it should be repaid plus the interest it has attracted. However, longer repayment periods can be negotiated with your legalized moneylender. How payday loan works are by ensuring the borrower is offered a quick financial solution to the funding crisis they may be experiencing. The lender requires you to provide them with your personal information and documentation which serve as proof of the information you have offered.

Once you have the required documents, you are expected to fill a loan application form which is often to find on the licensed moneylender platform. The loan officer from the moneylending institution then contacts you, usually within a few minutes after you have submitted your application. The loan application and approval process are very easy and fast therefore ensuring you receive the loan amount within hours after you have applied. The terms and conditions of the loan are always contained in the loan contract. This contract indicates the interest rates charged on the amount you have taken, the repayment period and the expected contributions.

It is advisable for a borrower to ask for clarification when the loan officer is working out the loan with them to ensure there are no hidden charges. As a borrower, you need to consider the implication of any defaulting and penalties you will incur.

Payday loans are best paid quickly as they attract high-interest rates, therefore, the longer you take reimbursing the loan the more you end up paying. It is also important to remember that any loan contract you sign, you are legally bound to honour the terms and conditions stipulated in the contract of the loan.

What You Need To Know 

It is useful and important that you fulfill a few requirements before applying for a payday loan in Singapore. These requirements are necessary to enable the moneylender to process your loan application with ease. This also ensures fast approval of your payday loan application. The requirements are:

  • You need to be older than 21 years.
  • You need to be a Singapore national, an expatriate in Singapore with a valid working permit or a permanent resident.
  • You should need to have a steady source of income to facilitate your advance repayment achievable.
  • You need to submit a valid identity card.
  • You ought to have evidence of current billing address. Utility bill for proof of address is accepted
  • You have to attach your past three successive month’s payslip.
  • If newly employed, attach your employment letter to your form of application.
  • You are required to present your income tax statement
  • This loan is not applicable to any undischarged bankruptcy or having pending bankruptcy
  • Your annual earnings need to be more than $18,000.

Who Provides Payday Loan?

Licensed moneylenders in Singapore often provide the payday loan. These moneylenders are licensed by the Registrar of Moneylenders. Moneylending institutions follow set rules and regulations that govern how they carry out the financing services they extend to their clients. The moneylending institutions are required to have valid licenses and an updated list can be accessed from the Registrar of Moneylender’s website. These institutions have a set limit on the amount of money an individual can take as well as the interest rates to charge.

Before taking any loan from a moneylender, ensure to check they are approved and registered moneylenders. Moneylenders are expected to offer all the necessary information to borrowers before they sign any loan contracts. This way the borrowers are able to understand what they are signing and the interest rates they have been offered. In order to avoid any hidden costs, borrowers are to be given the details and the working of the loan to ensure clarity to the borrower.

Conclusion

Payday loans offer quick access to money for individuals who need money fast. Singaporean payday loans are approved within a short period upon submission of the required documentation and a filled application form. How payday loan works are in providing quick cash to individuals. The loan amount is often repaid when they receive their next paycheck. The availability of funds makes it easy for individuals to attend to financial emergencies like car breakdown and medical emergencies with ease and in a stress-free manner. The fast approval rate of payday loans ensures quick cash is availed to your account in hours.

The Best Banks With The Lowest Interest Rate Personal Loans In Singapore

Personal loans are loans that banking institutions and moneylenders offer to borrowers. This loan type can either be unsecured or secured loan. The unsecured loans are always not backed by collateral while the secured need you to provide collateral when applying. Before a moneylender or a bank can offer you a personal loan, they use your credit score records to determine whether you are creditworthy. Personal loans are a form of an installment loan, this means that you make regular contributions in a given loan term. The interest rate on personal loans is often fixed.

Lowest interest personal rates Singapore ensure that you make affordable monthly contributions. This makes the repayment of the loan convenient for a borrower due to the low monthly contributions. When considering taking a personal loan in Singapore, it is suggested that you shop around for the moneylenders who offer the lowest interest rates that fit your budget. When you take an unsecured personal loan, ensure you repay back the entire loan amount plus the interest accrued lest you risk being taken to court by the bank or moneylender should you default payment.

Who Needs Personal Loans

There are situations that necessitate you taking a personal loan. A personal loan often offers a financial relief for an individual as he seeks to address financial emergencies. Some of the situations that call for you to take a personal loan include;

  • Personal loans can be used to consolidate credit. This will reduce the number of loans to one single loan.
  • A personal loan can be used to refinance education loans. This loan helps you pay off a loan with a higher interest rate with a one-off payment and service the new loan which offers lower interest rate.
  • Individuals who wish to finance a wedding can greatly benefit from a personal loan.
  • A personal loan can be a source of funding when you want to make purchases, like a car or a house.

Banks Provide Great Personal Loan Rates

In Singapore, three banks are offering the lowest interest rates personal loans. The lower the interest rates, the better it is for an individual if they want to take a large amount of money. These banks are UOB, HSBC and City Bank Credit Paylite.

UOB Personal Loan

In Singapore, UOB offers one of the lowest interest rates on their personal loans. a new customer, applying for a UOB personal loan with a principal of S$10,000 and three-year loan tenure gets a 4.38% annual flat rate.

This makes the monthly installments lower and a waiver will be offered on your processing fee. In order to enjoy personal loans from UOB, you need to be a Singapore national or a permanent resident. You need to be aged between 21 and 45 years with an annual income of S$20, 000 and above. If aged between 21 and 55 years, the required income must be above S$30,000.

HSBC Personal Loan

HSBC personal loans have a yearly interest rate of 4.5% for a period of 3 years. A waiver of S$88 will be offered off the processing fee. And S$50 cash back welcome.

HSBC Personal Loan has the longest loan period in the Singaporean market. This covers a 7 year period.

Singaporeans need to have a yearly income of above S$30,000. The maximum amount that you can borrow is 4 times your monthly income.

Foreigners living in Singapore need a minimum yearly income of above S$40,000 and are allowed borrow twice their monthly earnings and a max amount of S$100,000.

Citibank Ready Credit Paylite

Citibank offers an interest rate of 4.55% annually for a loan as low as S$1,000 and a 3 year loan period.

To qualify for a Citibank Ready Credit Paylite loan, Singaporeans need minimum annual earnings of above S$30,000. Foreigners need at least over S$42,000.

Not Everyone Will Meet The Strict Requirements

Accessing a personal loan for an individual from a bank and other financial institutions can be a challenge owing to the credit record. However, legalized moneylender available in Singapore can help.

Moneylender institutions are regulated by rules that have been set by the MAS to help govern their financial services and to ensure uniformity in the services they provide. Moneylenders are recognized in Singapore and are required to be registered with the Registrar of Moneylenders.

Depending on your financial commitments and needs, the choice of a reliable moneylender in Singapore is very essential. Different moneylending entities offer different financial loans.

The loan application process is easy and simple. It can be done in person at the moneylender’s offices or online via their platform. What you need as a borrower is to submit appropriate personal information like your contacts details, a current payslip, your employment status and all the supporting documents that the moneylender needs prior to processing your loan application. With the appropriate documentation, your personal loan will be authorized immediately in a matter of minutes.

Before taking a loan, make sure to shop around for the suitable moneylender for your financial needs. Read through the interest charges and penalty clauses as well as any other additional fees to be familiar with what you are signing. Ensure you can make regular loan repayments and on the agreed upon date to avoid defaulting penalties.

Ensure you understand the stipulated terms of the loan application form and when uncertain ask for the loan officer to clarify the terms and details of the loan. When the terms are not acceptable to you, you can choose to work with another licensed lender who will offer you the best loan terms for your needs.

Moneylender Approve Loan Faster Than The Banks With Less Documentation

A Personal loan an unsecured loan, therefore, no collateral needed during application. Money lenders offer personal loans to individuals who have an urgent need for quick cash t help meet their financial obligations. The money lenders require a borrower to meet the following requirements in order to qualify for a personal loan:

  • An individual must be a Singaporean or a permanent resident
  • You are to be aged 21 years and above
  • You need to be currently employed
  • You need to present a valid identity card
  • You are required to present the money lender with current 3-month payslips
  • You will need to submit 6 months of CPF contribution statement
  • Submit your recent income tax statement
  • Present your mobile bill as proof of residence
  • You should not have an undischarged bankruptcy or be undergoing a bankruptcy proceeding

Moneylenders loan application process is fast. Once you have submitted the relevant documents, you will be informed of the loan approval status. Paperwork is often not needed to approve your loan application, therefore, the approval process is smooth. Once the approved money is disbursed to your account on the same day for your convenience.

Personal loans are an alternative source of funding for individuals who are in need of emergency money for their financial needs and commitments. Although personal loans are easily accessible through moneylenders, be careful not to take too many personal loans which will eventually dig you deeper into more debt making it difficult for you to make repayments. Ensure you take loans that your budget can accommodate without causing you any financial strains. Make sure you take the lowest interest rate personal loan Singapore which guarantees that you pay low monthlyinstallmentss.

Fake Moneylenders: How They Trick You Into Believing Them

Due to the need to take loans to support the salaries that most Singaporeans earn, there has been an increase in the sources where you can go to take a loan. Among these are moneylenders. Moneylenders have always had a bad rap for being loan sharks and cheats, making people borrow from them without full disclosure of the terms and conditions of the loan, and then coming back to charge high-interest rates and even threatening the debtor. In October 2015, the Ministry of Law set down some rules and regulations that moneylenders had to follow if they wanted to remain in business.

  • All moneylenders have to be licensed and registered with the Ministry before they will be considered legal and allowed to work.
  • For both secured and unsecured loans, the interest rate is capped at 4%. If a loan is repaid late, an interest rate of 4% should be charged to the late payment.
  • Moneylenders are required to explain the terms and conditions of the loan to the customer in a language that the customer understands, and should give the customer their own copy of the terms and conditions for personal perusal and documentation.
  • No licensed moneylender will ask for your SingPass password. No moneylender is to keep your documents with them either.
  • The only fee a moneylender can charge you is 10% of the principal loan amount (administrative fee).
  • A moneylender shouldn’t charge you more than S$60 a month on late repayments.
  • Moneylenders should issue receipts with the proper signatures/stamps anytime you make a repayment.

Despite all these regulations put in place to curb illegal moneylending activity, illegal moneylenders still exist, and Singaporeans are still getting ripped off by them. One of the ways illegal moneylenders operate now is by stealing the advertisements of licensed moneylenders, and then affixing their own contact details on them. You or anyone took a loan from a fake moneylender, call that number and ask for a loan. And that is how the problems begin.

How Singaporeans Get Themselves Into Sticky Financial Situations

Cases abound of Singaporeans who fall into the traps of loan sharks disguised as licensed moneylenders. For instance:

  • A Singaporean, Mr Jack (not his real name), was really strapped for cash because his salary was not stable and he had a family to take care of. One day in January, he received an SMS offering him an instant cash loan without any fuss whatsoever (first red flag: no licensed moneylender will send YOU an SMS soliciting for business).He called the number but got no reply: two hours later, a Malaysian number called him, with the fluent, professional English speaker saying he was a staff of a registered moneylending institution. Jack said he needed a loan of S$2000, and the speaker asked for some documents to process the loan. Jack said he didn’t have those documents, but could he still get the loan?The speaker said yes (second red flag: you must provide documentation for them to see and verify before getting a loan), and asked for Jack’s SingPass login password (third red flag: no licensed moneylender needs your password for any reason).This password was used to find Jack’s residential address, and in a few hours, someone called him to meet on the void deck of the HDB flats where Jack lived. The visitor then called his boss, saying Jack was where he should be, and two hours later S$2000 was in his account. He didn’t have to present any documentation whatsoever.When he delayed in his repayments, things took a bad turn. He received threats on his life and that of his family, and, out of desperation, got more loans from moneylenders who had sent him SMSs (without meeting a single one of them). Jack’s debts ran up to S$12,000, and he didn’t know how he will pay all of that back.

This is just one instance; there are many of them, showing how anyone has taken loan from a fake moneylender, who isn’t actually licensed nor legal, rope themselves into financial problems with illegal moneylenders.

How A Loan Snowballs Into A Huge Debt

As in the example above, loans can metamorphose into huge debts when you keep borrowing to settle already existing debts, which all carry interest rates and a maximum time frame for repayment.

Also, when you borrow more than you earn per month/ per annum, it tends to be very difficult to repay loans with interest. Then you take another loan to settle the previous debt, and a different loan to settle that one, all with different interest rates, and that is how the debts just pile up till you don’t know what to do anymore.

What To Watch Out For In An Illegal Moneylender Pretending To Be A Legal One

  • All licensed moneylenders use only three mediums to advertise their business: business or consumer directories (print or media); websites (owned by the moneylender); and ads placed in, on, or around the moneylender’s building/place of business. Any moneylender who approaches you with a flyer, or uses emails, SMSs, radio or TV ads is not a legal moneylender.
  • A licensed moneylender will never send you an SMS soliciting for business.
  • A legal moneylender will always ask for your documents, including your income tax assessment records. Once they have gone through them, they will be returned to you.
  • A legal moneylender will always be courteous and patient, explaining every detail to you until certain that you understand. An illegal moneylender will definitely slip up on anyone of these points.

What To Do If You Really Need A Loan From Licensed Moneylender

The easiest thing to do is to check the Registry for the list of licensed moneylenders. Any moneylender not listed there is not licensed and, as such, not legal. Once you have checked the list, you can ask people around about the moneylenders you are considering: customer recommendations go a long way in helping you make the right decision.

Conclusion

It is easy to be duped into taken loans from fake licensed moneylenders in Singapore, and it is just as easy to avoid falling into that trap. To avoid running huge debts with high-interest rates, make sure you check the list of licensed moneylenders before approaching any moneylender for a loan.