Are you going through a rough financial patch and are in need of emergency funds with instant cash access?
Getting a fast loan in Singapore is easy as there are many options available in the market, such as a loan from a licensed money lender.
Since the Covid-19 pandemic started in 2020, many Singaporeans have been turning to low interest rate personal loans to help cope with retrenchment, unemployment, and rising living costs.
In recent years, payday loans have become increasingly popular among Singaporeans as the cost of living here has been on the uptrend.
Even with a full-time job, if your paycheck arrives later than expected, it could create a financial mess especially if you have many bills to pay. This is where payday loans can come in handy.
What is a payday loan?
A payday loan is a small short-term, unsecured personal loan designed to assist those with urgent financial obligations as these expenses need prompt payments.
Since these urgent obligations cannot wait till your next paycheck arrives, a payday loan will be useful at this point. This loan is easily approved and the cash is disbursed almost instantly if all paperwork is in place.
You can borrow up to your one month’s salary and will need to repay your payday loan when your next paycheck arrives.
This loan is available for both the employed and self-employed, and you can secure this loan even if you have a bad credit history.
Bear in mind that the repayments must be made on time to avoid incurring late payment penalties.
If you are facing financial difficulties, here are some scenarios when a personal loan may be helpful for you.
Benefits of taking a payday loan in Singapore with licensed money lenders
1. Fast approval
Urgent cash loans such as payday loans do not have a long and tedious application process as their main purpose is to provide access to quick cash.
With most licensed money lenders, you can simply apply online via the money lender’s website. The loan officer will get back to you within the next working day, after which you just need to visit the money lender’s office for a short interview and document verification.
Your loan can be approved on the spot within 30 minutes. Once you sign the loan contract, the money will be disbursed to your bank account or handed over to you in cash immediately.
You can also walk-in to their offices to apply. Similarly, if all documents are in order and your loan is approved, you can get the money immediately.
2. You can get a higher loan amount if you have a higher income
Before making an online loan application, it would be good to find out how much you can borrow across licensed money lenders at any one point in time.
The following maximum amount you can borrow across licensed money lenders is capped by the Ministry of Law:
|Borrower’s annual income||Singapore Citizens and Permanent Residents||Foreigners residing in Singapore|
|Less than $10,000||$3,000||$500|
|At least $10,000 and less than $20,000||$3,000||$3,000|
|At least $20,000||Up to 6 times monthly income||Up to 6 times monthly income|
Your borrowing power depends on your income. The higher your income, the more you would be eligible to borrow.
Similarly, you would be able to obtain a bigger payday loan if your income is higher. This makes sense since you’re allowed to borrow up to one month’s income for payday loans.
3. Your credit score does not matter
Your credit score plays a vital role in securing the best interest rates and loan terms with banks in Singapore as it is an indicator of your repayment capability. The higher your credit score, the higher the chances of loan approval.
However, with licensed money lenders, you can still get your loan approved even with bad credit history, as long as you meet the income requirements.
Apply for a low-interest payday loan
At Soon Seng Credit, we offer various types of low-interest loans with different repayment terms. We also offer quick and easy payday loans for all your urgent cash needs. Our application process is also simple — you can receive your loan within a day.