WHAT IS A PAYDAY LOAN?
Payday Loan Singapore companies are fast becoming popular among borrowers in Singapore. The increasing popularity is due to the many alternative lines of credit they offer to customers. But what is a payday loan? A payday loan is a short-term loan offered by a moneylending company to a borrower on one condition that they pay back the money when their next paycheck arrives. Most of the time, the debtor will provide a complete check prior to getting the credit. On the next pay day, the debtor cashes in the check and get their money back.
Payday loans companies began operating in the 1800s in the United States catering to an unbankable market. This group of people were largely ignored by banks and other financial institutions. In the 80s several regulations were passed to govern the industry and protect customers. Here in Singapore, payday loan companies started operating in the 20th century. The interest rate applied is capped by the Moneylenders Association of Singapore. The interest rate applied cannot exceed the set threshold.
FEATURES OF A PAYDAY LOAN.
1. Fast processing
Most Payday Loan Singapore companies process an application within a few days. Whereas some can process within a few hours.
2. Higher interest Rates
Interest rates charged on loans are generally higher than those charged by traditional lenders.
3. Minimal requirements
Most payday loan Singapore companies will only require evidence of regular income to offer a loan. No collateral or guarantors are required.
4. Credit history not required
Borrowers are allowed to access money despite their past financial histories. Sometimes, this may be the sole alternative for a person with poor credit history.
WHY APPLY FOR PAYDAY LOAN?
Everyone faces their own financial emergencies from time to time. Are you facing a financial emergency? Do you need a sum of money right now? Traditional creditors will usually take a longer time to process your application. A payday loan can give you that peace of mind you need instantly.
2. Poor credit history
Your past money-lending track record should not determine your future borrowing habits. Many payday loan firms in Singapore will still offer credit to you despite having a poor credit score.
3. Budget deficits
Is your low income preventing you from financing all your monthly expenses? A payday loan can help you meet all your monthly requirements without stressing yourself out.
WHAT TO CONSIDER WHEN APPLYING FOR THIS LOAN.
1. Additional charges
Enquire about any additional charges that you may be subjected to. Choose a company that emphasizes on transparency.
Enquire about potential penalties that may be imposed to you. In case you are unable to pay the full amount within your next paycheck, what happens? Understanding companies can tailor a payment system specifically to your needs so that you are not overwhelmed by the repayments.
3. Get testimonials
It would be important to get feedbacks or reviews from someone who has borrowed from the company before. This way you will know if the deal is good. Also, find out how long they have been dealing with payday loans. Generally, if they have been in existence for long, then it is safe to assume that they are good creditors.
Payday loans are an easy fast and efficient way to fulfill all your financial deficits and emergencies. Do not hesitate to apply for this loan today.