Payday Loan

Payday Loan in Singapore

There comes a time in our life when our finances hit rock bottom and cash flow somehow seems to be non-existent. It becomes even more bothersome when our pay check is not yet available until a few more days. In dire need and no other source of income, we have no other choice but to ask for help. In such a situation, one of the fastest ways we can gain access to instant cash is through a loan. Loans come in a variety of terms and conditions depending on the purpose, duration and interest rate. For immediate needs or emergency situations where you need cash on-hand the soonest, payday loans would be your best option. The best money lender Singapore has to offer does provide payday loans. Before you apply for one let us first understand what a payday loan is.

What is a Payday Loan?

A payday loan is a short-term loan wherein it is expected to be payable upon payday or when the debtor’s salary has been released. It is an unsecured loan wherein the only guarantee is the debtor’s forthcoming salary. What makes this type of loan beneficial for someone who is in immediate need of money is that it has very minimal requirements and that it has a very high rate of approval. Loans can be granted immediately after application. The only thing that may not work in favor of the applicant is that this type of loan usually has a high-interest rate compared to long-term loans. If the need for immediate cash outweighs the interest rate, then payday loans are an option to consider. However, if the principal amount together with the interest combined together would be greater than your expected salary, then you might either opt for a different loan type or work out other means of payment. Most licensed money lender in Singapore are well aware of the laws governing money lending and they do provide flexible terms at interest rates that are legal and fair.

How does a payday loan work?

Depending on your agreement with the lenders, you could either issue a check in favor of the lender which is payable when funds are available, in this case when your salary has been released or pay the entire amount together with financing fees in cash. That Is the first option and is the common route taken by most money lenders in Singapore. Another option would be to allow lending companies electronic access to your bank account wherein they could receive payment for the loan which was granted in your favor. A payday loan is just one of the possible solutions which you could turn to in case you badly need cash in a hurry. Although there are other options such as pawnbrokers or selling some of your stuff, payday loans are in a way better than these options as it allows you to gain access to cash immediately and it can be paid when your salary is available. It provides immediate cash and gives you just enough time to get out of trouble and be able to pay your dues in time. Be sure to check out our Moneylender Reviews for the latest reviews by real customers.