All You Need to Know to Get an Urgent Loan in Singapore

Sometimes, you may face a situation where you need money right away. This could be to pay off any medical or business emergencies or even to meet basic monthly expenses in case you have exceeded your monthly budget.

In such situations, you need funds immediately. Family and friends may be able to assist to some extent, but if the sum required is large, they may not be able to help cover the entire cost. For such cases, you need a more feasible yet quick solution, like an urgent loan.

Let’s find out what exactly an urgent loan is, how and where you can get it, and what are its advantages.

Urgent loan defined

An urgent loan is a type of personal loan and is unsecured, which means no collateral is required. It is a short-term cash advance that you can get quickly if you face a financial emergency. You can easily pay down all of your emergency debts and smooth out your financial cycle with an urgent loan.

Banks typically have lengthy approval processes for this type of loan, but licensed moneylenders in Singapore typically have less stringent requirements and can process and approve your request quickly. All you need to do is find a reliable moneylender to work with.

The features of an urgent loan

Why pick an urgent loan when there are so many other loan options available? The answer is that urgent loans give you quick access to the money you need in an emergency!

Here are some other great reasons for choosing an urgent loan:

Fees

Fees charged for the loan determine how much you have to pay back to the lender in total. Fees usually include interest rates and late payment fees. However, licensed moneylenders typically keep these as low as possible so that users can take out loans to meet their short-term cash needs quickly.

Turnaround time

When you need money quickly, getting funds into your allocated bank as fast as possible is critical. Banks and other conventional financial institutions have a lengthy and time-consuming approval process that involves a fair bit of documentation. However, with a licensed moneylender, you will get loan approval within the same day along with a flexible repayment schedule.

What’s the right time to get an urgent loan?

Here are some occasions when an urgent loan might come in handy. While these are the most common reasons for getting a loan, they are by no means the only ones and you could well have a need that falls outside this list. So do consider these as a guiding principle to determine whether you should get an urgent loan.

When monthly bills are due

No matter how thrifty you are, in an expensive city like Singapore, families with lower incomes or a single source of income may find it hard to pay off the many inevitable monthly bills and EMIs ie., Equated Monthly Installments.

For such families, being able to save is far from reality. So when they need money right away, an urgent loan is often the only option. Due to its competitive interest rates (licensed moneylenders can charge no more than 4% monthly interest). This loan, if paid back within a short period (ideally in about six months), is the better option to cover all your monthly costs compared to credit cards.

Healthcare emergencies

Medical problems can occur at any moment. In Singapore, citizens and PRs have the mandatory Medisave and Medishield, but that may not be enough to cover major conditions. In such situations, meeting high hospitalisation costs in Singapore can seem daunting, but an urgent cash loan can help at such a time.

When other emergency expenses arise

Aside from healthcare costs, numerous other emergency expenses might arise.

For instance, your car might need repairs or your house could require immediate safety renovations. Either of these could be out of your monthly budget. An urgent cash loan would be very handy in these instances.

Occurrence Of Natural Disaster

Natural disasters, such as floods, can cause damage to your house, necessitating immediate financial support. If you have any money set aside, you can get started on renovating your home and replacing damaged appliances right away. So what if you don’t have any money set aside? Then, applying for an immediate loan will be the right choice for you.

Securing a low-interest instant loan online from a reputable bank or moneylender in Singapore can help you avoid more property loss and save your home.

As a means of debt consolidation

If you already have several loans to your name, you are likely paying a high amount as your monthly interest rate. This not only affects your ability to pay off the principal sums on your various loans but also your credit score. After all, the more you borrow, the lower your score.

This is why getting a debt consolidation loan as a form of urgent loan is a good idea. It will also help you improve your credit history and ensure that your finances are in order.

What amount can I get as an urgent loan?

Whether or not a licensed moneylender agrees to approve your urgent loan application–and the amount you can borrow–depends on two major criteria. The first is your salary or source of income, and the second is your credit rating. Both moneylenders and banks often process loan applications and assist people with emergency cash needs depending on these two criteria. The higher your salary, the more likely you are to be approved for a larger loan amount.

Here’s how your salary impacts the amount you can borrow from a licensed moneylender.

Like your annual income, your credit rating is also considered when assessing your loan application. Banks in Singapore use CBS credit reports to assess your creditworthiness, while licensed money lenders use MLCB loan information reports.

A good credit rating and a history of on-time payments will help you obtain a larger loan amount. If your credit rating is low, the moneylender may still lend you the money you need as long as your employment and salary records check out, but the rate of interest may be higher (but still under 4%). There are many types of loans that you can consider while choosing what best suits your requirements.

Urgent Loan: Key considerations before applying

Here are a few important points to remember before signing the loan agreement. Let’s take a quick look at them.

Repayment policy

Make sure you fully comprehend the urgent loan repayment strategy. Make sure you don’t miss out on any repayments, because late payments can impact your credit rating and result in a variety of penalties.

General terms and conditions

The terms and conditions will be explicitly stated on the documents you’ll sign prior to loan approval. Make sure you read all of the terms thoroughly. It will assist you in avoiding potential mishaps and frauds.

Eligibility criteria

Another useful feature to look for in an urgent loan is the qualifying criteria. To qualify for an urgent loan from licensed moneylenders in Singapore, the applicant must be at least 18 years old and a Singapore citizen, permanent resident, or foreigner with a stable source of income. If you satisfy these requirements, you can apply for the loan with ease.

Interest rate

Another critical feature to consider is the interest rate. For an urgent loan, various banks and moneylending companies charge different interest rates. Before you apply for your loan application, make sure you review the interest rate. Remember, legal moneylenders cannot charge more than 4% interest per month because higher interest loans can be difficult to repay.

An urgent loan is the best way to fulfil all of your urgent cash needs. However, remember that many unlicensed moneylenders in the market can lure you in by offering low-interest rates and large loan amounts.

Make sure you don’t put your faith in someone without first doing a thorough investigation and verification. Only opt for verified, trusted, and legal moneylenders like Cash Direct for your urgent loan needs. Contact us and let us know your requirements, and our loan specialist would get back to you with a quotation tailored to your needs.