From business purposes to personal needs, fast and easy loans in Singapore from licensed money lenders are amongst the safest and quickest ways to facilitate the achievement of various milestones in life and the resolution of unexpected situations. Moreover, quick loans now come in many types to help you when fast cash is absolutely necessary, such as paying off hospital bills or getting a personal vehicle repaired. But given that these loans now come in many types, it may be confusing as to which one is the best for your needs and circumstances. To help you make the right choice, we shall dive into the specifics of three of the most common ‘quick’ loans available in Singapore today – personal loans, payday loans, and fast cash loans – and how they differ from each other.
1. Personal loans
A personal loan is essentially the most popular all-purpose loan widely available everywhere. It is a type of unsecured loan, which means there is no collateral involved when applying for it. Lenders do not have the right to take away any of a borrower’s assets should they fail to repay their loan on time.
How much can you get from a personal loan?
Financial institutions, on average, can provide a loan amount of up to 6 times a borrower’s monthly salary, provided they meet the minimum annual requirement, which is usually S$20,000. Those whose yearly salaries do not reach the lender’s specific requirement are still eligible for a personal loan, albeit at a reduced loan amount. The interest rate for personal loans is typically somewhere between 1 per cent to 4 per cent per month.
How quickly are personal loans given out?
Personal loans are considered to have relatively fast loan approval in Singapore – processing time for personal loans will typically only take one to three working days, depending on the money lending agency’s requirements.
2. Payday loans
Payday loans are a much shorter loan option that allows borrowers to access the funds they need right until their next payday comes around. They are generally a decent option for paying off small and unforeseen expenses, such as medical emergencies, or fund more significant ones that borrowers are confident they can pay off with their salary. Money lending agencies that offer this type of loan will typically require the borrowed amount paid for in post-dated checks that coincide with a borrower’s specific salary schedule.
How much can you get from a payday loan?
The amount you can receive from a payday loan will heavily depend on your income and potentially other factors specific to each money lending agency. What is certain is that applying for a payday loan will require borrowers to present key requirements, which may particularly include their most recent payslip. Moreover, credit history generally does not affect the approval rate for payday loans.
How quickly are payday loans given out?
Approval for a payday loan application is relatively quick, and borrowers can get their loan within one working day on average. This speediness is due to the loan being designed to be small and accessible to borrowers whom the money lending agency is confident will have the means to repay their debt.
3. Fast cash loans
As its name implies, fast cash loans are a type of loan that can be disbursed near instantly after approval, making it the perfect choice for those who truly need to get extra funds without delay. Like payday loans, they are ideal for more pressing emergencies that cannot wait even a few days due to their much faster processing time and cash disbursement than the two previous loans. This advantage is primarily what makes fast cash loans preferred by borrowers.
How much can you get from a fast cash loan?
The loan amount available to a borrower will depend on their annual income. According to the Ministry of Law, borrowers whose yearly income does not reach S$20,000 can get a loan amount that caps at S$3,000. Otherwise, borrowers can take out a loan of up to 6 times their monthly income.
The annual percentage rate of this type of loan will vary for every money lending agency. Under the Money Lender Rules of 2009, licensed money lenders can charge interest rates at a maximum of 48 per cent per year or 4 per cent per month. Since high interest is typically the trade-off for faster processing speed, fast cash loans are generally recommended only for very short-term loans, such as when a borrower experiences a temporary and unexpected cash shortage or simply needs a bit more cash without delay.
How quickly are fast cash loans given out?
After a borrower’s application gets approved, fast cash loans can be given out directly as cash or deposited to a borrower’s account within the day of approval. Applying for this type of loan is relatively quick and straightforward:
- Simply fill out the required application forms.
- Present the necessary documents.
- Await the money lender’s verdict all on the same day.
Quick cash loans for all-purpose needs now come in personal loans, payday loans, and personal loans. Each of these loans is ideal for different situations and will depend on your specific requirements in terms of loan amount and preferred payment terms. However, no matter which type of loan is chosen, it is essential to keep in mind that having a proper debt repayment plan is crucial to paying off your debts and improving your credit score.
If you need a quick cash loan today, do not hesitate to reach out to us here at Orange Credit. As one of the approved debt consolidation companies in Singapore, we are a licensed money lender that you can trust to provide you with the loans you need, be it simple personal loans, payday loans, fast cash loans, or more. Give us a call today to find out more about our services.