A payday loan is a type of short term loan. It is popular in Singapore due to it has fast approval processing, no credit check and no collateral is required to. The requirements are simple. As long as you are an adult with a regular job, have a stable income and a valid bank account. You can get a loan from the moneylender easily. What is more, the loan is small so that you can pay it back without financial burden.
A payday loan is suitable for those who need small cash to deal with unexpected financial emergencies. If you are looking for such loan in Singapore, here are some guides for you.
1. Figure out why you need this payday loan. If you need this loan to pay for a new car, car repair, tuition fee, or home improvement. You should know how much will you need and how long will you pay it back according to your financial conditions. You could consider a student loan. Different people seek for this loan for different reasons. If you look for this loan for unrealistic purposes such gaming, gambling, or drugging. You are not recommended to get a loan.
2. You should know as much as your lender. It is important to work with a licensed money lender. A licensed moneylender means that it has met the requirements which are set by the government for the type of business. It also means that any services that the lender offers you are legal. If there is any dispute, you can follow up with the authorities due to they have a database of these licensed moneylenders. The reputation of the moneylender is also very important. You should make sure that your moneylender with a good reputation. The reviews of these moneylenders from previous customers may help you to choose the best lender that you want to work with. It is advisable to compare their services when choosing moneylenders. This is the best way to obtain excellent services from a number of moneylenders available in the market.
3. Figure out terms and conditions. The terms and conditions of a payday loan in Singapore that your moneylender provides you are in accordance with the contract you sign stating the amount, the repayment plan and the interest rate. It is wise to work with a licensed moneylender that offers you terms and conditions best suit your financial position. You must make sure that you have understood the terms and conditions because the contract you make is binding legally.
4. Pay attention to penalties and fees. Find out what will be the penalty if you cannot afford the repayment on time and then you can come up with an idea to prevent this from happening. Moneylenders may charge you some fees for their services. It is wise to know how much money that a moneylender will charge you prior to working with it. Different moneylenders have their own fee. It is important to check and cooperate with one that is affordable. Comparing the charges of different moneylenders before you chooses your final one.