A payday loan or cash advance loan is basically a short-term loan that acts as a balancing role to meet quick cash needs. These loans carry a higher rate of annual interest and payments are often due within 2 weeks or close to your next salary. Moreover, this type of loan can be difficult to pay back and end up putting a figure higher than you assumed; if you’re not aware of the policies!
Before you plan to process an application, be assured you have known everything about it. It’s vital you realize how much you will get and how much you have to repay.
Since this type of loan has some benefits and drawbacks, you must familiarise yourself with everything beforehand. This write-up will help you have a clear understanding of a payday loans and the overall application process for it. You can too explore the pros & fundamental features in a brief.
Let’s get started!
Fundamental Features of Payday Loan
If you’re planning to acquire a payday loan, then reading out its fundamental features can help you know whether it’s suitable for you or not!
- The mortgage amount is small and even many states in Singapore have established a limit for it. $500 is a fundamental loan limit since it can fluctuate above and below the figure mentioned.
- This loan type is generally paid back in one single installment on the borrower’s following payday. The payable date will usually be around 2 to 4 weeks from the date, you borrow the money. The due date is mentioned in the agreement with other policies and terms & conditions.
- To pay back the mortgage, you either have to give a post-dated draft or give the moneylender permission to electronically debit the amount from your bank.
- The advantage of permitting the financiers is when you don’t repay the installment before the day scheduled, they will automatically withdraw the mortgage from your account and defend you from penalty charges.
- The amount will be credited to you either by cash or draft, as it is electronically transferred into your account.
Pros of Payday loan
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Easy & hassle-free application process
Simply by installing the app or sign in to the official website of the financing company, you can pursue the application for a payday loan online. All you need to ensure is filling out the form carefully & uploading the latest bank statement, identity, and address proofs.
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No stress of paperwork
All of your paperwork will get eliminated when you upload all the requisite documents online. If all of the documents are in order, then it’s guaranteed that the loan will get approved, and money will be credited to your preferred bank account on the same day.
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Flexible loan amounts
You can borrow a flexible payday loan amount, based on your monthly salary, repayment ability, and favorable terms and conditions.
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Short Term
There will be no stress of paying the loan for several months or years. The repayment tenure is customarily 1 month to 3 months, at the most maximum, 6 months.
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No Prepayment Charges
You can pay back the whole amount before the completion of tenure without paying any closing fee.
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Full Customer Support
Money Lending companies are quick with customer support and guidance is just a chat or phone call away. You can clear all of your doubts by choosing any of the options.
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Multipurpose
Similar to a personal loan, you can utilize your payday loan amount for any job that may include clearing your credit card bill before the scheduled date or repaying your monthly maintenance expenses. Likewise, if you are receiving it for marriage & voyage, purchasing your accessories, then you can also flexibly use it.
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An amazing credit line option
Various money lenders in Singapore give you a flexible credit line option rather than opting for a term loan. It means that you will be granted a particular amount and you can withdraw & repay that amount when you require it.
Also Read : Personal Loans Vs Payday Loans: A Detailed Comparison
List of Important Factors You Must Know Before Applying
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Interest rates
Usually, the rate of interest is high for this loan type. Licensed moneylenders Singapore issue an Annual Percentage Rate. That is simply the rate you have to pay if you are ready to borrow.
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Your bank’s access to financier
Many financiers get access to your bank account and collect repayments from your debit card electronically. Since they are fast to collect payments online, it can be hectic for you to manage your finances on the day of repayment. This is why it is advisable to keep track of your account regularly. It can also help you save yourself from unwanted penalty charges.
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Loan size
As we said earlier, a cash advance loan is for small amounts, you cannot use it for paying huge mortgages. In general, cash advance loans are used to pay credit card bills and other outstanding debts, which are of a small amount. A normal loan amount can be approximately $500 but can, of course, be higher or lower based on your requirements. So make sure, you request the amount, analyzing your needs carefully!
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More Financiers
It is not primarily essential that you need to acquire a payday loan from a local bank or a professional financier. You can hire us, top rated Jurong East Money Lender.We approve the loan with minimal hassle. No matter which company, bank, and financier you choose to get a cash advance loan. Be sure you research everything about it from the desired experience to the background.
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Uncertainties associated
Payday loans hold various uncertainties such as incompetencies to pay back the loan before the due day, penalty charges with more interest, minimized credit scores, more high-priced expenses, and a supplementary fee. Hence, you must make decisions wisely, keeping the risk factors in mind.
Key Remarks:
Well, it’s all about the payday loan. In addition, you can explore the internet for more information about the quick cash loan in Singapore. It is suggested to read the terms and conditions thoroughly before applying for the loan. A lot of things can put you into trouble whether it’s related to interest rate or tenure, all you have to do is to double-check everything beforehand.
Hopefully, you find the article useful and successfully will be able to apply for a loan. However, if you have any doubts, then you can feel free to write in the comment section.
Thanks for reading!
