Do you ever that one month when your finances are stretched tight? It is usually in these months that an additional financial requirement pops up in the form of a stolen phone or a broken appliance that needs your immediate financial attention. You know you could afford this if only you could get your next pay check. Well, you are not alone. An unforeseen event such as this is very common and an instant cash loan or a payday loan is tailor made for such a situation.
This type of loan is usually a short term loan where the amount borrowed is relatively smaller amount. These loans usually charge a higher rate of interest. Typically the borrower writes a post-dated cheque for the amount borrowed and the fee for the loan. The date of the cheque ends the tenure of the loan.
Things to Remember
A payday loan usually has exorbitant interest rate or finance charges so do not get tempted to take more than what you can afford with your next salary. Failure to pay on time will increase the debt many folds and come back to haunt you.
Know Your Options
Do your homework to find out that this kind of loan actually suits your needs and situation. If you need more details talk to loan specialists. You can explain your situation to the specialist and discuss your options. Any reputed money lender in Singapore will not force you into choosing a particular type of loan and you will be able to back out from taking a loan any time before you have agreed.
Usually the repayment of such a loan is done in one lump sum on an agreed date. However, in many cases, this can be broken into instalments. You can also make interest only payments, where each month you pay the fee agreed till you can pay off the agreed amount. This is typically known as renewal or rollover.
Below are the eligibility criteria for such a loan.
- The borrower must be at least 21 years old.
- He/she must furnish a valid passport
- There should be a valid NRIC
- A valid bill reflecting residential address as an address proof.
- Payslip for the last three months
An instant loan is very helpful in an unforeseen event where you need some extra cash for a short period of time. In case you need a larger amount or for a longer term you should check out the other loan options available in the market.