Much like the rest of the world, Singapore has been deeply impacted by the ongoing pandemic. This has not only affected the health of its people but also the economy, with many individuals losing their jobs and struggling to make ends meet.
Even though the situation is gradually improving, there has been a rise in the number of millennials in Singapore taking personal loans. Let’s explore why this is happening and the benefits of doing so in these uncertain times.
Reasons For Taking Loans
Whether it’s to start a business, buy a home, or pay off debts, personal loans can be a helpful financial tool for achieving one’s goals. However, with the pandemic still affecting the economy, these goals may be harder to achieve without some extra financial support.
Some of the most common reasons why millennials in Singapore are taking personal loans during the pandemic include:
- Loss of income and difficulty covering expenses
- Desire to own a home or clear existing debts
- Pursuing career goals or investing in education
- Unemployment or underemployment
Depending on the reason for the loan, some may require urgent funding, while others may benefit from a more flexible personal loan from a licensed moneylender. Despite the challenges presented by the pandemic, we are seeing more millennials requesting personal loans, including those with bad credit scores. One reason for this is the positive impact of the pandemic on credit scores.
Improved Credit Scores
The pandemic has resulted in many businesses closing down temporarily or reducing their operations. This has led to a decrease in consumer spending, allowing people to save more money and improve their credit scores.
A good credit score can make it easier to qualify for personal loans in Singapore, as it provides a level of security for banks and lenders. As millennials have seen some of the highest improvements in credit scores in recent times, it is no surprise that they are taking advantage of this by applying for personal loans when they need them.
Securing Financial Future
A study conducted by Standard Chartered in 2020 found that 70% of millennials globally —including those in Singapore— found it difficult to manage their finances due to the pandemic. Unsurprisingly, 35% of millennials reported an increase in borrowing at that time, compared to just 24% of those aged 45 or over. This suggests that millennials were looking for ways to secure their financial future, despite the challenges presented by the pandemic.
Taking out a personal loan can provide a safety net for those looking to invest in their future, whether by starting a business, buying a home, or making other major purchases. It can also help to manage finances more healthily during stressful times.
With the pandemic affecting almost everyone in Singapore, seeking financial help through personal loans has become a popular option for many millennials.
If you are looking for financial assistance, consider applying for a personal loan with Cash Direct, a licensed moneylender in Singapore. With competitive rates and a simple application process, getting the financial support you need has never been easier.
Don’t let the post-pandemic economy hold you back any longer. Apply for a personal loan with Cash Direct today.
