Need money to pay to pay unexpected medical bills but are short on funds before your next paycheck? How about unexpected leaks in your house that require renovation costs? AH! No need to fret! No matter the reason behind these unforeseen expenses, you can take up a payday loan to help ease the financial tension.
A payday loan in Singapore is available to help create a channel for consumers to access cash quickly when they need to cover their immediate expenses and can’t wait until their next payday. Payday loans in Singapore may also be known as “cash advance loans” and should not be confused with a credit card advance facility, which involves withdrawing a credit card’s remaining credit limit as cash.
The maximum loan quantum of a payday loan cannot exceed one month of your monthly salary. Any payday loan you take also counts towards your maximum loan limit across all moneylender loans.
A payday loan is usually repaid in a single payment on the borrower’s next payday, or when income is received. This time frame is typically two to four weeks
While banks claim to offer “instant loan approvals”, this often requires having an existing bank account or credit card. Non-customers will have to wait for their loans to be approved before they can receive their funds, which could take a few working days. However, most moneylenders are often able to disburse the funds within the day and sometimes within an hour. All you have to do is apply for your loan, acknowledge the loan offer, then pay a visit to the moneylender’s office to verify your identity and sign the loan contract. Afterwards, your funds will be disbursed to you.
As the name suggests, an unsecured loan is a loan that does not require the borrower to put up any collateral. In theory, these loans are a less risky borrowing option because there is no danger of losing any assets if you can no longer repay the debt.
Often, you only need to offer proof of employment, identity documents, proof of residential status to be granted a loan. Further, a high credit score is usually not required to secure a payday loan.
Due to higher interest rates, payday loans should be paid off as quickly as possible to avoid falling into a debt spiral. It is also recommended to be used for only non negotiable everyday expenses like rent, utility and groceries. They should not be considered for impulse or unnecessary purchases that you could hold off on, save up for and purchase at a later date. If you keep borrowing for several months, your debt will snowball into a huge amount if you fail to pay it back and can lead to more financial strain. Thus, it is not recommended to take multiple payday loans to avoid over borrowing.
Other things to note are the terms and conditions of the payday loan before borrowing, especially repayment terms, interest rate, fees and charges. For example, when you fail to make loan repayments, you’ll incur late fees of up to S$60 and late interest rates of up to 4% per month!
The following are commonly required when applying for a payday loan.
Licensed money lenders are legal entities in Singapore that offer payday loans. They are highly regulated by the Ministry of Law and they abide by the rules and regulations stipulated in the Moneylenders Act.
Though there are many licensed moneylenders listed on the Ministry of Law’s website, it is not advisable to go to the first moneylender that catches your attention. Instead, you should check out multiple moneylenders and do your own due diligence on them by checking feedback and reviews of previous clients.
Alternatively, there are also loan comparison platforms such our platform, Lendingpot, that can help you save the hassle and reach multiple lenders at once through one application! This way, you can not only increase your chances of your loan approval upon your first application but also ensures that you are applying to trustworthy moneylenders.
Additionally, many of these platforms including ours are free to use! With this, you can put the cash towards paying the loan instead. So what are you waiting for? Sign up, submit your loan application and get your cash now!
To apply with us, simply set aside two minutes and use MyInfo to fill up a loan application form with your desired loan quantum and tenure.
If you are not a student, yes, you can still qualify for a payday loan.
Yes, you may apply for a payday loan as long as you show a proof of your income (e.g. 12 weeks Grab statement).
Payday loan is suitable for borrowing smaller amounts of money (an amount that can be covered with your monthly salary).
It is suited for working professionals who have maintained a steady employment but are in need of access to cash immediately.
Payday loans often has higher interest rates than personal loans. But, by doing some research, it is possible to find a lender that is able to offer a payday loan with reasonable interest rates. One such lender is Friday Finance. Friday Finance charges an admin fee of 7% with a 3.5% refund upon full repayment and offers a 2% interest rate!
Alternatively, you can also apply through brokers such as us that would be able to compare the rates for you. Not to mention, Lendingpot provides this service for free!
Even though payday loan lenders do not run credit checks, they would still report non-repayment or late payment of the loan. If you fall behind on your payday loan payment, the default payment or debt will be reflected in your Moneylenders Credit Bureau report which will then decrease your credit score.
We’re happy to answer your queries.