There are some moments in our lives when things can get a little tough in terms of dealing with a number of expenses on a day to day basis. Basic needs must be met, along with some other miscellaneous items that are supposed to be taken care of. Whether you are single or married, there are certainly surprises that come your way, which require you to have a steady source of income and adequate funds. In Singapore, for instance, the cost of living is quite high. In fact, there are some Singaporeans who deal with financial issues because their income is not enough at times. This is why they get into some trouble when emergency expenses come along because of not having sufficient funds to cover these.
If you find yourself in such kind of a situation, you may worry about where to gain an access to extra cash. While approaching your family members may seem very convenient to do, you have to admit that they also have their own personal expenses to be taken care of. This is why it is not always ideal to borrow some funds from them, particularly if you are intending to borrow a larger amount of money. Also, there is the awkward feeling of borrowing money from them, which can be rather uncomfortable to deal with.
What Payday Loan is All About
When money is a bit too tight, there is an option to take out a payday loan for your expenses. This type of loan is designed to help tide you over until the next payday comes. It is also not a large amount of money, so it should suffice for your basic and immediate needs. If you have a rental payment that needs to be settled, or perhaps some other small items to take care of, then a payday loan should be adequate for these purposes.
As Singapore is a financial hub in Southeast Asia, it is rather easy for individuals and business to select the best loan products that match their particular needs. There are payday loans, housing loans, personal loans, cash advances, and so on. However, the easiest among these for you to gain an access from is a payday loan from licensed money lender due to the less strict requirements and processes that come with it. This is why people who need additional cash consider taking out a payday loan because of the seamless process involved.
What are the Advantages of a Payday Loan
A payday loan allows you to have all your basic needs covered when you are experiencing financial concerns. You will be able to have a sufficient amount of money for your bills and basic needs through the extra cash you can get from this loan. So, for your utility bills payment and other needs, a payday loan should be ideal to get if you find no other way to obtain some cash. It is worth noting that a payday loan is only designed for a short-term need. No matter what your income level is, you should be able to take some money out for your concerns. The process for applying for a payday loan is generally efficient and fast, and there are no extensive paperwork required from you.
In fact, you can find payday loan companies with websites that feature an online loan application form that you can fill out in a matter of minutes. However, there are minimal verification processes involved, which are usually completed at their office. This is a good way to determine the legitimacy of the lender since you can be certain about the valid business operations they have because of their actual physical office and registered landline that you can contact anytime when you have concerns. There are a few benefits that you can expect from a payday loan. For the most part, you will appreciate the speedy process when applying for a loan. It may even take as fast as an hour before you can receive a feedback regarding your application. One hour may be all it takes before your loan application is approved.
Another important benefit is the confidentiality their provide to their clients. Lenders make sure that all of your personal details remain private, which gives you the peace of mind as you fill out the application form. Important information about yourself such as your income or employment details are not divulged to other individuals. This is very essential since the last thing you want is to have details about you wafting around the internet or exposed to other lenders and financial institutions.
What to Consider Before Taking Out a Payday Loan
Although a payday loan is easy to obtain, there are important areas to look into before you take out a loan. The Singapore government is conducting ways to make sure illegal moneylenders are prevented from performing their fraudulent activities that will compromise the safety of people. However, this does not mean that their operations are completely clamped down. This is why you need to make an effort to search for the right lender that will spare you from massive headaches due to scamming.
Before you decide to take out a payday loan, the following are some of the things you may want to look into:
1. Choose a legitimate moneylender
There are hundreds of moneylenders in Singapore. But not all of these are operating legally, as there are those without any license or physical office, yet their operations are on-going. Thus, it is best that you check the legitimacy of the money lender and make sure they are performing their advertisements for the services offered in a legal manner. Stay away from moneylenders that do SMS or print advertising since these are common activities of an illegal moneylender.
2. Determine the amount you need and the monthly payments to be made
Before you submit the application form, make sure that the money you are borrowing is exactly the amount you need. There are interests that come with the principal amount borrowed, so you have to be aware of this when you need to repay your loan. Borrow only the exact amount you need, as this will prevent you from suffering due to massive interest rates and fees.
3. Read carefully the payday loan terms and conditions
While money lenders usually have varied interest rates and repayment schedule, there is a standard that they follow as set by the governing authorities for money lenders in Singapore. This is why you should read the terms and conditions carefully and request for a clarification when need be. By doing so, you can spare yourself from unscrupulous lenders that are conducting their business illegally just to get something out of their clients.
More Tips to Consider about Payday Loans
A payday loan is generally easy to apply for. There are only a few documents that you need to submit including a proof of your residence and a notice of assessment, with the latter being applicable only for self-employed individuals. These must be presented to the lender during the time of verification of information you supplied on the application form. Then, you will be assessed accordingly by the lender, so you can determine the amount that may be borrowed based on the information you have provided.
Just keep in mind that a payday loan is not at all a long-term solution for your financial concerns. It is only a short-term unsecured loan, so you will have to pay it off in a matter of weeks. If you are not certain about being capable of repaying the loan, it is best not to take one out to begin with. Otherwise, this could truly hurt your credit rating and give you more stress when it comes to dealing with the repayment process. So, unless the need for extra cash is urgent, a payday loan application should not be the only solution to look into for your financial concerns.