A cash loan is a short-term personal loan with a fixed interest rate and repayment period. It is usually unsecured, which means that it is lower risk as the borrower would not need to put up collateral in order to apply for one.
When looking for a cash loan in Singapore, we all know the basics of finding low-interest rates and a reliable licensed moneylender who can meet your financial needs. What else should you look out for? In this article, we will share 4 things every borrower should know to find the best cash loan in Singapore.
1) A lower interest rate does not always mean a cheaper loan
One of the most important factors to consider when applying for a cash loan is finding a low and competitive interest rate. However, a lower interest rate does not always mean that you are getting a cheaper loan.
When you borrow a cash loan from a licensed moneylender, the interest rate usually depends on how much you borrow, for how long, and your credit score. You should look for a personalised cash loan for your needs such as a medical emergency, a wedding, a home renovation, and so on. Finding the right cash loan for the right situation would help you to secure just the right amount of loan you need that can suit your budget and needs, usually at a lower interest rate compared to credit cards and banks. You should also inquire about any admin or hidden processing fees that can potentially make your cash loan more expensive.
2) You should always have a repayment plan in place
The golden rule of taking out a cash loan is to make sure you have a repayment plan in place. One of the benefits of a cash loan is that the repayment period is pretty flexible and can be stretched up to 12 or 24 months, depending on the moneylender’s term.
When you apply for a cash loan, the key thing to consider is what the impact would be on your finances, and whether a cash loan would be the best option for you. Most licensed moneylenders will determine your cash loan limit based on your monthly income and credit score. In instances where this amount is higher than what you actually need to borrow, it is advisable to borrow only what you require.
To manage a cash loan successfully, find out how to set a monthly budget and plan your finances here. This will determine how much you can afford to repay for your cash loan while ensuring that your remaining budget is sufficient for other needs. You should also review your spending habits before deciding on your cash loan amount and tenure.
3) You should pay off your loans in full before the promotional period ends
Many credit cards and cash loans offer promotional deals that may seem attractive but are actually dangerous if you are not aware of the terms and conditions. An example is a deferred interest. It is a common promotional feature that lets the borrower or credit card user make charges and avoid paying interest if the payment is made in full before the promotional period ends.
The catch is that with deferred interest promotions if you miss the repayment period and fail to make the full payment within the promotional period, you will end up having to pay off the original interest amount. As much as possible, when applying for a cash loan during a promotional period, it is advisable to pay off your loans in full so that you do not incur additional interest rates.
4) Finding the right cash loan for you in Singapore
With the right financial partner, half the battle is won in finding the right cash loans for you. Soon Seng Credit is a licensed moneylender in Singapore that offers simple and low-interest loans for our customers. We offer flexible loan repayment terms of up to 12 months and the best of all, fast loan approval so that you can get your cash loans almost instantly.
Our loan officers are problem-solvers and we’re always here to help ease your financial burdens so that you can direct the extra focus onto greater opportunities.
Depending on your needs, Soon Seng Credit’s 3 of our simplest and hassle-free loans include:
- Payday Loan
- A small loan
To find out more about our loans, contact us at Soon Seng credit today.