Short term cash loan in Singapore, are often taken out by individuals who urgently need fast cash for an emergency purpose. The short-term loans are an unsecured type of loans and in order for you to qualify for one. You are required to have regular wages from some sources like from a business or a job. You are also required to be a Singaporean or a resident of Singapore and can work here as well. In addition, the law instructs that you need to be 21 years and above before you are able to take out a short-term loan
Unexpected events in life can at times pressure many people into taking up short term types of personal loan. One thing tough banking institutions don’t offer their loans to every person. It may happen that a borrower needs a short term loan straight away but they may not hold a good credit rating.
However, licensed moneylenders are able to extend short term loan types to help their borrowers manage their financial deficit. During times of extreme anxiety, some borrowers may overlook the important conditions of the short term loan.
One important thing that borrowers need to keep in mind is that that they should avoid borrowing a loan for servicing games of chance that can include games like betting, gambling, investment trading and also undertakings that aren’t a guaranteed thing. The amount of money you borrow needs to be utilized for the particular need it was borrowed for.
When you have borrowed too much cash instead of using it on imprudent ventures, make sure that you repay it in huge sums as part of the loan repayment agreement.
How To Qualify For A Short Term Loan
Given that short term loans are unsecured, the money lender will require evaluating first your capability to pay back the loan. The assessment done also gives the potential lender a good plan of the sort of repayment scheme that will best suit you to ensure that you aren’t overburdened. Your money lender will examine the below-mentioned things for you to qualify this type of a loan:
Credit Rating – when your credit rating is poor, your lender is able to still help you access the credit you require on condition that your financial situation at present is able of supporting your loan.
Employment Proof – You also need to present your employment agreement. This contract should contain things like your monthly salary clearly indicated. Also, this serves as an indicator of your ability to service the loan taken with ease.
Your Recent 3 Months Payslips – this is only for foreigners. These documents enable the money lender to evaluate your income, debt servicing ration, and other expenses. Using this information, a licensed moneylender will know the amount of money they can extend to you in loan money as well as work out a repayment schedule that can work best for you.
This loan type is specifically ideal for individuals in business and those that are paid on commission. By using such information your money lender is able to work out the amount of money you earn each month on average. This way they are able to calculate the loan amount you are able to get as well as the repayment scheme that is best for you.
Bankruptcy – when you have in the past filed for bankruptcy, you will still qualify to get a short term loan with a licensed money lender by presenting your discharge letter. Unlike the traditional banking institutions which require a previously bankrupt individual to wait for as many as 5-7 years before they can be able to access credit, there some licensed money lenders who are able to assist you now.
10 Useful Tips To Consider Before Taking Out A Short Term Loan
When you are not sure about how the process works and whether you simply would like to access a loan fast and without hassle, it is advisable to read through these 10 tips listed below to guide you.
- A licensed moneylender needs to explain the conditions and terms of a short term personal loan to their borrowers using a language that is easy to understand and in a clear manner.
- Borrowers need to ensure that they get a copy of their Note of Contract during the time the funds are being issued to them.
- It is important that as a borrower you ensure that the Note of agreement is correctly showing the principal loan amount of your short term credit and rates of interest charged as well as dates of the contract and the loan disbursement as well.
- Borrowers should make sure that the licensed moneylender had issued the accurate loan amount with no portion of it being withheld for whichever reason at all.
- It is important that borrowers ensure that they pay their monthly installments promptly to avoid incurring additional late payment charges.
- Borrowers need to get a dated and also signed receipt each time they pay back the short term loan and also any costs charged by their moneylender
- The receipt needs to bear the certified moneylender’s name, telephone number, address, the cash amount repaid as well as the date when the payment were made.
- The borrower needs to ensure that they get their accounts statement for all their loan(s). The statements need to be issued at least once in every 6 months. Borrowers should make a point to request for one when they do not receive any from their money lender.
- Borrowers also should maintain proper records of all their short term personal loan repayments
- And above all borrowers should not rely on any verbal commitments made by lenders. They should ensure that they always obtain a written proof from their licensed moneylender.
Short term loans are often taken out by individuals who urgently need fast cash for an emergency purpose. Unexpected events in life can at times pressure many people into taking up short term types of personal loan. One important thing that borrowers need to keep in mind is that that they should avoid borrowing a loan for servicing games of chance. And above all be sure to work with a licensed lender.