Taking loans is a part and parcel of modern financial management. Most of us face situations sometimes that necessitate taking a cash loan. However, before your need for an urgent cash loan makes you look for reliable providers of an instant cash loan in Singapore, it is important to fully understand the types of cash loans and conditions of repayment.
Through this article, let’s take a look at the various instant cash loans in Singapore. We will also see how taking a cash loan can help you overcome challenging situations.
Taking an instant cash loan in Singapore and ensuring eligibility
An instant cash loan is usually a loan that is disbursed almost immediately by a registered financial institution without the need for any collateral. Therefore, to ensure the safety of their loan, the lenders examine the eligibility of a customer who applies for an urgent cash loan. The eligibility depends on two main factors:
- The evaluation of the borrower’s credit bureau score (CBS) report
- Ensuring that the borrower’s balance to income (BTI) is within the acceptable levels
Depending on these two parameters, a person is granted the desired instant cash loan such as the personal loans, payday loans and microloans.
In the age of consumerism, it is common for people to indulge in the ‘buy now pay later’ facilities that various ecommerce companies and retailers offer. However, before taking such loan-based offers, one has to understand the loans deeply and how they can be used for financial management.
Instant cash loan in Singapore and how to use it for financial management
The most common type of instant cash loan in Singapore is the personal loan. It is offered by banks and licensed money lenders. Although, it is not to encourage living under debt, a good personal loan can help meet urgent cash loan needs and help manage problems like a large credit card bill. Not paying the credit card bill on time can cause heavy penalties and default fees which could be anywhere between 25% to 29% per annum. However, if you take a cash loan then you can save on that interest payment since a cash loan charges only 7% to 9% interest.
In any case, the major criteria for anyone being eligible for a cash loan is the ability to make complete and on-time payments. Therefore, an urgent cash loan can sometimes help you plan payment of your next bill on-time even if you are dealing with some cash shortage.
Payday Loans and how they can help
The cost of living has increased sharply in recent years especially in Singapore. The pandemic has also made financial management more challenging. Therefore, it is now becoming a common occurrence to see young individuals seek cash loans until their next paycheck. Typically, such payday loans are handy for people who need to spend money urgently and the payday is still far.
One might need cash urgently to pay a medical bill, buy something in a flash sale or pay an urgent utility bill etc. The payday loans are usually of short duration and need to be repaid within 1-3 months. The typical interest rate for such loans is in double digits which makes these loans quite costly.
Thus, it is imperative that the debt is kept as low as possible and one should always try to get an instant cash loan in Singapore that offers lower interest rates. At the same time, it has to be understood that such an urgent cash loan, even with the high interest, can sometimes be very helpful in managing a financial problem. The short duration of the loan makes them a better option.
For instance, paying 1-3 months of 10% interest will cost less than 2% interest for 2-3 years. The best way is to calculate the total amount of interest payable before deciding on the type of cash loan you want.
Instant loan for business, microloans, and how they can help
The first and foremost thing is to keep your business loans separate from personal needs. Entrepreneurship today has become highly dynamic. There are so many challenges faced by start-ups and funding is the most common of them all. By taking instant loans, individuals can manage financial transactions smoothly and these loans are often used as a backup to maintain cash flow if there is a delay in receiving payment from clients or some procedural delays in processing payments.
The business loans are often longer duration loans which help in growing a business during its early stages. Through such funding and finance support, businesses can fully focus on their operations as they don’t have to deal with the pressure of investors. Through an instant cash loan in Singapore, it is possible to fix cash flow challenges.
Understanding of types of instant cash loans in Singapore is extremely important. Credible cash loan providers and registered moneylenders often provide financial advice to their customers. Through careful deliberation and maintaining good payment schedules it is possible to take another urgent cash loan whenever needed.
Article by Born Realist