It is not uncommon for anyone to be challenged by an unexpected turn of events that requires more expenses than planned. This can be an emergency medical bill, a sudden car breakdown that requires a repair or even a wedding cost that escalated beyond budget. It is at these times that fast cash loans would be a saving grace.
What Is a Cash Loan?
A cash loan is a type of personal loan that is sometimes known as an instant loan or a quick loan. Compared to other forms of loan, getting a cash loan is a convenient and fast way of obtaining temporary funds to quickly make ends meet and let you focus on more important matters at hand.
While banks do offer cash loans in the form of credit lines, they are still subject to stringent approval guidelines and often take up to days to process. This is why many borrowers are turning to licensed moneylenders like UK Credit for cash loans. Here are three key reasons why such loans are gaining popularity:
1. Quick Application and Approval Time
When applying for cash loans with licensed moneylenders, you can expect minimum documentation that takes no more than five minutes to fill up. The application can even be done online, which means you can literally do it anytime, anywhere. There is no need to visit the moneylenders’ office or wait behind long queues, that’s how convenient it is!
The approval process is extremely quick and hassle-free as well. Usually, borrowers can receive a confirmation in as short as 30 minutes and receive the money right after.
2. High Approval Rates
The loan quantum for a cash loan is generally much smaller than other loans like mortgage loans or business loans. The smaller loan sum works in the favour of borrowers because lenders are more confident about recovering the money and less likely to hold back on the approval.
In general, moneylenders don’t evaluate the borrowers’ credit scores when processing cash loans and thus allowing a higher rate of approval. There is also no need for collateral, deposits or guarantors.
Do you have a bad credit score? Find out how you can still qualify for a loan here.
3. Low Interest Rates and Flexible Repayment
Cash Loans from moneylenders often come with very flexible repayment schemes of up to 12 months. This enables borrowers to pay back the funds at a manageable pace that does not disrupt their regular way of life.
The interest rates are also relatively low at 4% reducing interest per month. Furthermore, borrowers would not have to worry about hidden fees or hefty late payment charges because all licensed lenders are regulated by the Ministry of Law, and their chargeable fees are transparent and in line with the Ministry’s guidelines.
What You Need To Know Before Getting a Cash Loan
Keen to get a cash loan? Before you rush ahead to apply, here’s a basic guide of the eligibility criteria you must meet, the amount you can borrow and what kind of interest rates you can expect in the lending market.
To qualify for a cash loan, you must:
- Be a Singaporeans and Permanent Residents
- Be 18 years old and above
- Have a stable monthly income
- Apply with Singpass or NRIC
If you are a foreign applicant, you must:
- Be 18 years old and above
- Be working and residing in Singapore.
- Apply with passport, proof of employment (Work permit, E-pass, S-pass, other proof of employment), proof of income (the latest three months’ payslip) and proof of residency (tenancy agreement or bills addressed to applicant)
Cash Loan Borrowing Limit and Interest Rates
As a rule of thumb, you can borrow up to six times your monthly salary. But the limit is subject to the lender’s approval. Interest rates are based on 4% per month, calculated based on the Reducing Balance Method (RBM). This means interest will only be levied on the outstanding principal balance.
How to Apply for a Cash Loan
Step 1 – Fill up the online form on the licensed lender’s website
Step 2 – Get approval in as fast as 30 minutes
Step 3 – Receive cash in your account in as fast as 30 minutes upon approval