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15 Aug '16, 3pm

Payday Loan in Singapore: Understanding The Pros, Cons and Whys

Payday Loan in Singapore: Understanding The Pros, Cons and Whys  Singapore is a financial and business hub in ASEAN, and this means that businesses and individuals will have lots of financial products to choose from — payday loan, cash advances, housing loan, personal loan, business loans etc.   But that doesn’t mean that all individuals have equal access to all financial products, especially those in the lower to middle income group, except for one — payday loan.   

Benefits of A Payday Loan
 
Payday loan often helps to ensure that families in need remains available during periods of financial need in order to continue fulfilling everyday needs such as necessities and bills. 

Payday loan are usually a loan for short term needs as anyone from any income level can seek to apply for one. They are usually designed to be efficient, fast and fuss-free, even allowing for online application with some simple verification before proceeding to in-store application completion. 

They are usually part of a core offering from licensed moneylenders simply because it’s very hard for lower income individuals to secure a short term loan from the bank. 

Some obvious benefits other than these are: 
·         Fast approval process — averaging an hour for approval 
·         High discretion — you can indicate interest with online application   

Research on the right moneylender to borrow from
 While the government has spent a lot of efforts in clamping down illegal moneylenders, it’s still not enough to completely eradicate them and it’s up to you to do your own due diligence in order to avoid borrowing from the wrong company. These are some of what you should look out for when securing your payday loan: 

1. Legitimate and lawfully listed moneylender 
Always, and I mean always check that the company that you are borrowing from are legit. I would even advocate that you do a check again on the day that you are borrowing from the company. 

Ministry of Law has a list of registered moneylenders that you can refer too. Not only that, it also has lots of useful information such as understanding effective interest rate and the rights of borrower. 

Bonus tip:
 One easy way to weed out illegal moneylender is from their advertising channels. Legal moneylenders are not allowed to do print ads or SMS advertising — a method used often by illegal moneylenders.   

2. Decide on your borrowing amount and repayment period first 
Moneylenders often decide on your repayment package — interest rate and repayment period — based on your loan amount. So always make sure that you are borrowing just enough to meet your needs to avoid any unnecessary interest rate charges. 

3. Understanding the terms of the payday loans 
Each moneylender offers different rate to their borrowers, and you will need to do your own research on this. Always try to look out for one that clearly spells out how much you need to repay, with no hidden clauses or fees.   

Extra tips about borrowing
 
Always be confident about walking away from a loan if you felt that anything is amiss during the borrowing process, and always secure a loan contract to protect yourself. Also always try to return your repayments on time to maintain a good credit ratings so that you will still have access to these quick financial products in times of needs.   

For more details on Payday loan or at https://loansingapore.com.sg/payday-loan-singapore-understanding-pros-cons-whys

Comments

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