Anyone can face unexpected expenses. No one is exempt from money emergencies, especially in a fast-paced city such as Singapore. Sometimes it might be a medical urgency, other time it might be a home renovation need, the instances that require quick access to money are multiple. One of the ways in which you can get quick access to money when the circumstances require you to is with the help of an instant cash loan. If you’ve been considering quick cash loans in Singapore, here’s what you should know about them, before signing a contract.
What are Quick Cash Loans?
Just as the name suggests, quick cash loans are credit that you can get quickly. They are short-term loans designed to help you meet a financial emergency. You can get them from licensed moneylenders and, since they are created to offer you quick access to financial relief, you can get your money in as little as 24 hours after applying.
Here are some of the key features of an instant cash loan:
- They typically offer small amounts of cash
- The repayment periods are on the shorter side
- They offer fast-approval, typically within one day
- They address urgencies, such as medical expenses, a down payment, car or home repairs
In terms of benefits, these can include:
- Fast application and disbursement: with an instant cash loan you can get access to the money you need in as little as 24 hours, maybe even sooner.
- The credit requirements are more flexible, especially if you’re considering moneylenders instead of banks. Money lending institutions would often incorporate employment status or proof of income consistency as ways to grant a loan
- They are typically unsecured, meaning that you will not need to pledge any assets in order to gain access to the money. This makes it particularly popular among the younger generations.
What are Your Rights as a Borrower?
If you’re borrowing from a licensed moneylender, then you’re covered by the national law regarding the ways in which the process is conducted.
Unlike unlicensed moneylenders, which are not working under the Moneylenders Act and are more commonly referred to as “loan sharks”, licensed moneylenders have a set of rules they must respect in their practice:
- The interest rate cannot be higher than 4% per month
- The late interest is also capped at 4% and is calculated on overdue amount only
- The administrative fees cannot exceed 10% of the loan and will not be required before handling you the money
- The late fees can add up to a maximum of $60 per month.
Who Can Apply for an Instant Cash Loan?
The eligibility criteria differ from moneylender to moneylender, but there are a few documents you will be required to provide in your application form and these can include, but are not limited to:
- Age: 21
- Employment status: full-time or part-time, depending on the lending institution
- Identity proof: NRIC or Passport
- Income proof: a bank statement or a computerized payslip
- Residency proof: household bills
- Employment contract: for those who have under 6 months of experience at the current workplace
There might be more documents that certain moneylenders will require you to provide, but further instructions on that will be provided once you get in contact with an institution.
How to Spot Scammers
As mentioned earlier, licensed moneylenders have a set of rules and guidelines to respect, but unlicensed moneylenders do not. Here are some of the give-aways that will help you spot a scammer:
- They will ask for personal information (such as your Singpass login)
- They will require upfront payments (sometimes disguised as “admin fees” or “processing fees”)
- They initiate and maintain contact via text messages – licensed moneylenders are forbidden by law from contacting customers via text messages and social media
- Use threatening or aggressive language
How to Apply
If you’re looking to apply for quick cash loans in Singapore, then here is a step-by-step guide on how to do that and maximize your chances of obtaining an approval:
- Step 1: check the website for the Ministry of Law and look on the list of licensed moneylenders
- Step 2: Pick anywhere between 3 to 5 agencies from that list and start researching them
- Step 3: Pick one or two agencies from the ones you previously researched and look over their eligibility criteria. If you match it, then you can get started with your documentation.
- Step 4: Prepare all the necessary documents that are required on the website and keep in mind that they might for more, if you’re a particular case.
- Step 5: check that all of your documents are correctly completed and submit them. If you left documentation out or if you forgot to complete some sections, chances are your application will be dismissed on the grounds of insufficient information
- Step 6: if your application is approved, you’ll get a call from the moneylender asking you to come into their office and sign the contract face-to-face. If your application is rejected, you will get a letter stating that and the best thing you can do in that scenario is to call the agency and ask them about the ways in which you can improve your application for next time.
- Step 7: read the contract carefully, ask as many questions as needed (licensed moneylenders are required by law to answer your questions and explain the terms in a way that is understandable)
If you’ve got this far, then congratulations! Once you sign the contract, you will get your money instantly (if you pick it from the counter) or in a matter of minutes or hours, depending on the bank processing the transaction and the time of day.
Many Singapore people find it easier to obtain an instant cash loan, than another type of loan, but you have to keep in mind that you should never borrow more than you can take.
