The economy is fast facing a downhill trend with wages staying stagnant and the job market is not doing very well. Having cash on hand is becoming a common problem in today’s economic woes. We have heard stories from our borrowers that they face unpaid bills and threats from illegal moneylenders. Loans have been around for quite some time and today we have technology to help us in communications and providing different cash loan in Singapore.
There’s many cash loan in Singapore options. Cash loan in Singapore is offered by both banks and moneylenders with a number of options to choose from. Regardless of the name, type of loan or where the loan is from, as long as cash is involved it can be called a cash loan. Let us discuss about the various advantage and disadvantages of cash loan in Singapore or sometimes term as payday loan.
Flexibility – Cash is still king and is widely accepted across all payment platforms. Even with bitcoin, cash is still the age old safest form of payment. Cash loans does not restrict where the money is spent on, whereas a common car loan or renovation loans are used only for specific purposes.
Quick – Although with other loan packages, a cash loan in Singapore can be achieved without much credit checks and collaterals. One can get a quote of a payday loan package through an email quotation request. Most replies are usually within 1-2 business days.
Convenient – As cash loans are more flexible and easier to process, its accessibility makes it a draw for borrowers. Now, one can do it online to get pre-approval without heading down to the physical shop and getting rejected instead.
Cash is too Easy – With cash loan in Singapore being able to be obtained easier when compared to other loan types, there are higher tendencies for borrowers to splurge instead. Money woes should be controlled and one has to undertake a more disciplined approach when getting a loan. Be money smart about your new found cash flow.
Higher interest rate – With the added convenience and time saved, most lenders will impose higher interest rates. A typical payday loan scheme involves the calculation of your loan allowed amount. If your annual income is more than $30,000, one can loan money up to 4 times of what is your monthly income. With the new interest rate cap by the government, the interest rates that will be applicable for you will be fixated at 4% monthly.
Regardless of whom you are getting a loan from, either from the bank institutions or licensed moneylender, do your research properly. Clarify directly to the loan officer should any terms and conditions stated seems dubious. Get the loan officers to explain the terms as it is by law that they should inform borrowers of the loan package and any added charges to it. Finding a good licensed moneylender will go a long way.