The unfortunate thing about being an adult is that the responsibilities come with a price. And, you have to be prepared for these circumstances.
Emergencies might arise at any time, leaving you with no option but to take out an instant loan. However, banks don’t give out personal loans as and when we request them.
Hence, to get your hands on cash in times of need, you will need to research and find the best possible money lender in Singapore for your specific requirements. Read on to know more about getting an instant loan in Singapore for emergencies and what makes them stand out from other lenders.
What is a Personal Loan?
A personal loan in Singapore is a type of unsecured loan, which is given to individuals on the basis of their credit score or the absence of collateral.
Unlike secured loans that are backed by collateral, personal loans are unsecured. Hence, they come with higher interest rates compared to secured loans. On the other hand, personal loans are more flexible and can be used for multiple purposes, including:
- To pay emergencies – A instant loan or urgent loan can be used to pay for emergencies such as medical bills from sudden medical challenges
- To consolidate debt – Debt consolidation is the process of taking out a new loan to pay off your existing debt. This allows you to pay off your debt faster and in a single payment.
- To renovate your home – Home renovation loans are another major type of personal loan that people use to fund big projects.
- To pay for wedding expenses – A wedding loan is a type of personal loan that can fund any wedding-related expenses. Moreover, it can help in paying honeymoon-related expenses.
How To Get A Instant Loan In Singapore For Emergencies?
To get an instant loan in Singapore for emergencies, you need to find a lender that offers this option. Not all lenders have such a flexible policy.
You can check out the MoneyIQ Loan Matching Platform to find instant loans. In fact, you can get results in minutes.
You can also apply for a personal loan at a bank. However, banks tend to impose stricter requirements compared to licensed moneylenders in Singapore.
Here are some tips on how to get an instant loan for emergencies:
- Make sure to maintain a good credit score and credit history. You can enjoy getting a fast cash loan if you have maintained a good credit score. To keep a good credit score, make sure that you pay your debts on time.
- If possible avoid applying for multiple loans from banks and other lenders. Having more than one application can be deemed by banks and lenders that you are trying to take on more debt.
- Find a bank or lender that offers instant loans for emergencies. Make sure that
To know more about credit scores, read How to Check Credit Score in Singapore.
Available Options for Emergencies
As we have discussed, you need to find a lender that offers personal loans for emergencies. There are multiple lenders available in the market, each offering a different rate of interest and terms. Hence, you need to do some research and find the best option. Based on your credit score, you will be offered a certain rate of interest.
The following are some of the most common emergency loan options available in the market:
Personal Loans
A personal loan is an unsecured loan which is offered at a higher rate of interest compared to a credit card. However, it is a better option as you get more control over your loan. Moreover, there are instant loans available which are perfect for your urgent needs.
Credit Cards
Credit cards are generally the last option you want to turn to for an emergency because of the high-interest rates charged. However, in an emergency, it is one of the best options since it can be approved quickly.
Cash Advance
A cash advance is another form of a short-term loan that is offered by credit card providers. One thing to keep in mind is that they come with extremely high-interest rates.
When Should You Take Out Instant Loan?
Before taking out a personal loan, you need to assess the available options. This will help you take a decision that is in your best interest.
Taking out an instant loan to fund an emergency may not be a good idea. Instead, you can set up an emergency fund, which will help you avoid taking out loans.
However, if you are still lacking funds and can’t fund your emergency needs you may need to take out an instant loan.
How to Find the Best Lender for Your Instant Loan for Emergencies?
Before you take out a personal loan, you need to find the best lender for your specific requirements. When you apply for a personal loan, you need to provide details about your income and employment history. Hence, it is important to choose a lender that considers your credit history and offers flexible terms.
These websites collect data from multiple personal loan lenders and display them on a single page.
By comparing multiple personal loan offers from different lenders, you will get a better idea of the terms and conditions. This will help you choose the best personal loan for your needs.
What are the Benefits of Taking out an Instant Loan for Emergencies?
Emergencies can arise at any point in time. However, they often don’t give you enough time to save up for expensive surgery or a broken car. Thus, it is important to find a solution, which will get you your hands on cash as soon as possible. If you take out an emergency loan, you can get your hands on cash in a couple of days.
This will help you pay off your expenses quickly and get back to your normal life. Apart from this, taking out a personal loan is secured by your assets such as your car or home. This means that you don’t need to worry about your bad credit and getting declined by lenders.
Final Words: Taking Out Loans Doesn’t Have to Be Scary
Taking out a loan is not something that you want to do, especially if it’s an unsecured loan. However, it is important to remember that taking out a loan is a good way to get money quickly without having to wait for an insurance check to come in. To make the process a bit easier, it’s a good idea to research your options before choosing a specific lender.
Frequently Asked Questions:
What should I consider before taking up an instant loan for emergencies?
To apply for an instant loan for emergencies it is essential to consider the disbursement time of the loan – how fast can you get the cash? Also, you need to consider if you can get the cash on the same day. Licensed moneylenders are usually an ideal option as they can approve the loan in minutes and disburse the cash within the day of application provided that you have complete loan requirements. You must also consider the interest rates and the repayment period.
What are the instant loan requirements in Singapore?
Among the most common requirement of personal loan providers in Singapore is that they need to be at least 21 years old to apply. There are also some caps on the age limit which is either until 600 years old or 65 years old. For most banks, there is a minimum annual income requirement of at least S$20,000 or at least S$30,000 for Singaporeans and PRs. A minimum annual income requirement of at least S$40,000 to S$60,000 is required for Foreigners. However, if you earn below S$10,000 annually income, do not worry as there are licensed moneylenders that can provide instant loans. You may need to furnish documents to prove your identity and income.
How much can I borrow?
Since a personal loan is an unsecured loan which means that there’s no need to provide collateral, banks will generally not lend a huge amount. The maximum loan that you can expect is up to 4 times your monthly income.
For a licensed moneylender, Singaporean/PRs can lend you up to S$3,000 if your annual income is less than S$10,000 and up to S$500 for foreigners residing in Singapore. An annual income range from S$10,000 – S$20,000 can make Singaporeans/PRs and Foreigners borrow up to S$3,000. And, an annual income of at least 20,000 can make Singaporeans/PRs and Foreigners eligible to borrow up to 6 times their monthly income.
| Annual Income | Singaporeans/PR | Foreigners Residing in Singapore |
|---|---|---|
| Less than $10,000 | $3,000 | $500 |
| At least $10,000 and less than $20,000 | $3,000 | $3,000 |
| At least $20,000 | 6x monthly income | 6x monthly income |
Source: Ministry of Law – Registry of Moneylenders
How can I get a personal loan immediately?
One way to speed up your personal loan applications from the bank is if you have an existing deposit account and you already have a credit card. Since they have previously approved your application, they somewhat have knowledge about how much they can lend you.
Also, if you keep a good credit score, any loan provider in Singapore, whether a bank or a licensed lender can help you get an instant loan for emergencies immediately.
Are you searching for the best personal loan offer in Singapore?
