What are instant cash loans?
Instant cash loan in Singapore typically refers to personal cash loans, which can be obtained as quickly as a few hours. These loans are offered by banks or licensed moneylenders and have a relatively lower cap in terms of the loan amount one can take. Nonetheless, such loans are still chosen by some for their quick downtime and fuss-free procedure.
Today, anyone with access to the internet can apply for an instant cash loan in Singapore. Most banks also allow users to tap on MyInfo, a Singpass initiative launched in 2016, to auto-fill digital forms with their personal data from government sources. Depending on the financial institution’s terms and conditions, you may also verify your identity with Singpass, saving you the trip down to the bank when you apply for an instant cash loan in Singapore.
If going online is not an option, you can always visit the bank in person to make an application for a loan. Many licensed moneylenders also prefer this mode of transaction, which affords both the lender and borrower peace of mind.
When your application is all set and ready, these loans typically take between a few hours or a few days to be approved – much faster today than before.
Weighing the pros and cons of an instant cash loan in Singapore
Some of the benefits to consider when applying for an instant cash loan in Singapore are convenience, fast approvals, and flexible repayment terms.
Online applications save you the need to travel, especially as banks close early on the weekends, which are your only free days to make a trip down. They’re also made fuss-free and easy to apply, without the need to manually fill in details that can be hard to remember and troublesome to retrieve.
Some banks even promise approvals as quickly as a few minutes before you can start seeing the numbers in your account balance go up. For those in urgent need of cash, such loans are a great alternative to pay off upcoming credits without much hassle.
Banks also often put up promotions when you apply for a personal loan, including bonus credits, rebates as well as offering flexible repayment terms to help ease your burden.
However, such loans have their drawbacks as well.
Drawbacks of applying for instant cash loan in Singapore
Some instant cash loans in Singapore have relatively higher interest rates than other types of loans. The interest rate may vary based on your personal credit score and how well the bank thinks you are able to pay back the loan. This could be a big drawback to those on the lower end of the income scale as it will mean a higher interest rate when you apply for an instant cash loan in Singapore.
Aside from interest rate, your credit scores will also affect the lump sum amount you can borrow. Those with a lower monthly income and/or who are unable to produce collaterals of sufficient matching value may only take out smaller amounts. Sometimes, it may not be enough to finance your personal needs.
Additionally, personal loans also have a shorter repayment period as compared to other loans, so you should consider it carefully before applying for one.
Besides banks, you may also consider taking out a loan from licensed moneylenders, which provide competitive rates to suit your personal financing needs. Licensed moneylenders are as easily accessible, with many outlets located within the heartlands. However, as most of them do not have online application options, you would have to make a trip down personally to get your loan approved.
Some of the advantages of borrowing from a licensed moneylender may include a shorter approval time as well as a flexible repayment term, making them a valuable alternative if banks are not an option for you.
Do also be sure to borrow only from a licensed moneylender. You can verify the company’s validity by referring to the list of licensed moneylenders on the Ministry of Law’s website. It is illegal for moneylenders to loan you cash without a valid license and borrowing from them may cause you more harm than good. Still unsure about loans? Find out more about the truths and myths of taking up a loan in Singapore from licensed moneylenders.