Taking out a personal loan can help taxi and Grab drivers bridge financial gaps, especially when demand for rides is low or inconsistent. So, if you’re facing this situation, you might be asking if getting a personal loan is a good idea.
By providing a lump sum of cash upfront, these loans can help cover essential costs like vehicle rental, petrol, and maintenance, ensuring that drivers can continue to operate their businesses without interruption.
Discover how a personal loan, with features like easy requirements, fast approval, and flexible repayment plans, can give you greater peace of mind to deal with the financial challenges that come with being a self-employed driver.
The Benefits of Applying for Comfort Taxi or Grab Personal Loan in Singapore
In these difficult times, taking a personal loan is an advantage and there are many benefits that you can get from licensed moneylenders.
Easy Requirements
One of the benefits of a personal loan for taxi drivers from licensed moneylenders is that they have less stringent requirements. ln general, to be eligible you just need to be at least 21 years old and must prepare for the following:
- Proof of Identity such as your NRIC.
- Proof of Income such as your payslip.
Your proof of income is important since some of the lenders may base the total amount of your loan on your income. There are also some money lenders that will just need your tax license or Grab statements to apply for a personal loan.
Fast Approval
Some lenders will just need a few minutes to approve your loan as long as your requirements are complete. You’ll enjoy less waiting time when it comes to approval, usually in 24 hours.
Easily Address Your Financial Problem
We know how hard it is for you to finance your expenses in these trying times. With a faster rate of approval, the money that you can get from a personal loan can help to finance your taxi rental and petrol costs.
No Collateral Needed
GrabTaxi driver or Comfort Taxi Driver loans are unsecured. So, what does this mean? In simple terms, you don’t need any collateral to apply for a personal loan for taxi drivers in Singapore. Instead, borrowers usually approve your loan based on your creditworthiness (credit score) and annual income.
But, if you’ve got a poor credit score, don’t worry there are still moneylenders that can help you. They will just need to check your current financial status and your ability to repay.
If it’s your first time borrowing, you may start with a low amount and pay it accordingly, so you can start earning a good credit score.
You may also read: How do you improve your credit score.
Tailor-made Repayment Schedule
The good thing about Grab personal loans or loans for taxi drivers is that the repayment schedules are based on your type of work and your current financial situation. Therefore, you will have a much more flexible repayment schedule.
Can Be Used for Other Purposes
A personal loan is not only essential for your daily expenses it can be also used for other purposes. Commonly, it can be used for the following:
- Emergencies. It can be used for unexpected events in our lives such as paying for medical emergencies.
- Enrolling Online or Upgrading Your Skills. If you plan to shift your career and want to work from home and be trained, a personal loan can be a good start to finance your skill upgrade. By learning other skills, you can find ways to increase your income while being a GrabTaxi or Comfort Taxi earnings are still low because of the outbreak.
- Paying Other Bills. In these tough times, you may be also having a hard time paying for other expenses because your earnings were greatly affected by the pandemic. Getting a personal loan can be helpful to pay other bills especially those that need to be paid immediately.
You may also read the Top 8 Reasons to Get a Personal Loan in Singapore.
How to Get the Best Personal Loan for Taxi Drivers in Singapore?
Check for the Lowest Interest Rates
Interest rates can affect the total amount that you need to pay. You need to find a personal loan that has the lowest interest rate.
Licensed moneylenders are only allowed to charge interest rates not more than 4% per month. Beware from borrowing from illegal lenders or loan sharks. They will usually offer interest rates above 4% per month.
Look out for the Fees and Charges
Among the key considerations when taking a Grab personal loan or a Comfort Taxi driver loan are the fees and charges. Make sure that the lender discusses all the fees and charges clearly.
Licensed moneylenders are only allowed to have an administrative fee of not more than 10%. Also when it comes to late interest, it must not go beyond 4% each month of late repayment and they can only charge a late fee of not more than S$60.
If some fees and charges can’t be explained or a much higher one, then you might be dealing with an illegal lender.
Also, if you are planning to take a Grab loan or a Comfort Taxi Driver personal loan from a licensed money lender please read the notes to borrowers in Singapore.
You may also check out how to differentiate a licensed moneylender from a loan shark.
Flexible Loan Tenure
In terms of choosing the loan tenure, the general rule is that if you take a shorter tenure, you will have a higher monthly repayment. If you choose a longer one, you’ll end up paying lesser monthly repayment but you’ll have higher interest to repay and the total amount of your repayment is much higher.
Choose a loan repayment based on your capacity to repay. You may either pay it weekly, bi-weekly, during your payday, or monthly.
You may also read The Ultimate Guide in Finding Personal Loan with the Best Interest Rates in Singapore (2020)!
How can you borrow with a Personal Loan for Taxi Drivers?
If you’ve decided either to apply for a Comfort Taxi Loan or a Grab Taxi Personal loan in Singapore, you must also know the maximum amount that you can borrow. Please keep in mind that when licensed moneylenders decide on how much you can borrow it will depend on the following factors:
Annual Income
To provide the maximum loan amount, banks and licensed money lenders usually check the annual income. This will also mean that the higher the annual income you have, the higher the maximum loan amount you can apply for.
If you are earning about S$20,000 or above annually, you can get up to 6 times your monthly income. If a taxi driver is earning an average of S$2,619 monthly, it will turn out that he is earning about S$31,428 annually. Since this is above S$20,000, the driver can borrow up to S$15,714.
To be a smart borrower, it’s important not to immediately take the highest offer. You must base the amount to borrow based on the total amount you need and your capacity to pay. Your capacity to pay is vital here since failure to pay on time means that you need to pay late interest and late fees. So, you will end up paying more.
Credit Score
Another key element that financial institution considers when providing you with the amount that you can borrow is your credit score. We all know that if you are a responsible borrower, you’ll end up having a higher credit score. However, on the other side, if you have delayed payments for loans, your credit score decreases.
The higher your credit score is or by maintaining a good credit score, you have the higher chances of borrowing for a higher loan amount. Banks usually consider credit score as a deciding factor, however, licensed moneylenders usually have less focus on this. This is why you can read or hear that they tend to extend help even with bad credit scores or no credit history at all.
Are You Ready To Take A Comfort Taxi or Grab Personal Loan in Singapore?
Personal loans can be beneficial while we are recovering from these challenging times. If you’re ready to take a personal loan for taxi drivers in Singapore, we can help you. You may start finding the perfect Comfort Loan or GrabTaxi Personal loan by using our loan matching platform. Find the right match for a personal loan today!
