Singapore citizens often meet financial crises by taking out fast-cash loans. Unfortunately, when someone applies for fast cash, it means that the need is urgent. Due to that severe urgency, they forget to look at the terms and conditions of the loan and sometimes end up in even deeper financial trouble. Here are the different types of popular fast-cash loans available in Singapore:
- Personal Loan: This is a widely-used type of unsecured loan. (The term “unsecured” means that the borrower does not need to offer any collateral to get the loan.) It has a set interest rate and the borrower pays back the same amount every month for a set period of time. Such loans are used for various purposes such as debt consolidation, emergency medical bills and other urgent needs. The amount loaned is based on the income and credit rating of the client.
- Payday Loan: Typically, this is a small, short-term loan made available very quickly – often in just a few hours time. It requires negligible or minimum paperwork. The loan amount is decided based on the monthly income of the applicant and is expected to be returned the next payday. In the event of collateral, the borrower writes a check to the lender for the loan amount and fee to be cashed on his next payday. Applicants need to be a minimum of 21 years and a maximum of 64 years old to qualify. Such loans are perfect for emergencies.
- Cash Advance Loan: This is very similar to a payday loan. The amount can be borrowed from a licensed moneylender before payday. No collateral is needed for this loan and it is usually approved and disbursed quickly. The income of the applicant determines the amount to be taken as a cash advance. Such loans are very expensive, but have a high approval rate.
- Debt Consolidation Loan: Individuals who are finding it difficult to keep track of all of their debts find debt consolidation loans to be the ideal choice. They consolidate small loans so that the applicant can focus on one single monthly payment. These loans are usually for a larger amount than emergency loans and are paid back in installments over months or years.
- Instant Cash Loan: When there is need of some extra cash for emergency needs then it’s a good idea to opt for instant-cash loans. The money is disbursed instantly once the applicant’s loan is approved by licensed moneylenders.