Payday loan Singapore: Important tips for securing one

A neon sign on Payday Loan in Singapore

Going through a rough patch and need cash instantly? One quick solution would be getting a short-term loan such as a payday loan in Singapore.

 

What is a payday loan?

Payday loan is a short-term unsecured loan that covers urgent financial obligations that cannot wait till your next paycheck. It allows you to borrow up to one month’s salary, to be repaid by your next paycheck.

 

Advantages of payday loan

· Easily obtained and funds disbursed immediately

Most money lenders in Singapore can process your online application within an hour and disburse funds on the same day. Learn more about the 1 hour loan approval service here.

 

· Able to get a loan even with bad credit history

The good news is that you can secure a payday loan in Singapore even if you have a low credit score. Money lenders in Singapore are only concerned about whether you can repay the loan on your next paycheck.

 

· Not a stringent documentation process

Only a few important documents such as your payslip and NRIC, are required to process the payday loan in Singapore application.

 

· Good way of improving your credit score

Taking up a loan is not always a bad thing. Money lenders in Singapore regularly report your credit standing to the Credit Bureau of Singapore. Prompt repayments would improve your credit score.

 

Disadvantages of payday loan

· High interest rates

The interest rates for taking a payday loan in Singapore are comparable to those charged on credit cards. This can be a setback when the loan quantum is small as the interest is calculated weekly or bi-weekly.

 

· Loan quantum is restricted

You are not allowed to borrow beyond your monthly salary, which is good news as it serves as a deterrent from borrowing more than you need.

 

· No self-control

You can easily spiral out of control with these payday loans in Singapore. This can potentially ruin your financial future if you are not careful. Some people fall into the trap of taking a second payday loan to settle the first one.

 

Tips on applying for the payday loans

 

a) Ability to meet the lender’s requirements

Singaporeans or permanent residents need to provide their NRIC, proof of residential address, and 3 months’ payslip. Some money lenders in Singapore might also require an employment letter.

 

Foreigners need to provide their passport or employment pass, proof of residential address, employment letter, and latest bank statements.

 

b) Proof of income

You must be currently employed and produce your employment letter as well. For Singaporeans and permanent residents, the minimum income requirement is S$1,500 and for foreigners, it’s S$2,000.

 

c) Clear any outstanding payday loans

Money lenders in Singapore will be cautious about granting you a new payday loan in Singapore if you have other outstanding payday loans on hand. You would be profiled as a high-risk borrower.

 

d) Check your credit history

Most payday loans in Singapore are easily accessible even if you have a low credit score. You will get a lower quantum of loans with higher interest rates. However, if your credit history is poor, the lender may deny your loan application.

 

The application process

It is a simple and straightforward process as listed below:

 

· Choose a legitimate money lender

Browse through legitimate money lenders in Singapore by visiting their online corporate websites or visit them in person at their registered business premises. The choice is yours!

 

· Schedule an appointment in the office

At this point in time, you may ask as many questions as you want, pertaining to payday loan Singapore. Check on the interest rates and all other fees, if any.

 

· Loan officer will assess your income docs

The loan officer will go through the loan application process and verify your documents at the same time. Do provide all supporting documents to prevent any delays.

 

· Once the loan is approved, understand all the conditions of the loan

You will receive a call from the loan officer informing you that your loan has been approved. Understand all the terms and conditions of the payday loan Singapore.

 

· Sign the loan contract

Vet the loan agreement and make sure that you agree with all the terms of the loan. It’s not too late to back out now if the terms are not suitable. If everything is in order, proceed to sign the contract. You should retain a copy.

 

· Funds will be disbursed

Funds will appear in your bank account anytime now. Just wait and relax!

Elite Investment and Credit Pte Ltd is one of the best licensed money lenders in town. Talk to us today about a low-interest rate payday loan in Singapore. Click here to find out more.

 

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