Unexpected situations can pop up any moment, and with them come panic and sudden need for more cash. Most of us have been in such situations, and it can be distressing if you do not have ample cash. In situation like those, standard loans might not be reliable because they take longer to process, or are only allowed for specified reasons, such as buying a car or renovating houses. One of the best alternatives is using a cash loan in Singapore.
When you decide to go for a cash loan, it is important to appreciate they can take several forms. Therefore, which one should you go for? This post will demystify the different types of cash loans that you can go for in Singapore.
Why Cash Loan in Singapore?
The main advantage of using cash loans in Singapore is that they are pretty easy to qualify for. However, the requirements still differ depending on the selected lender, and picking the best can be challenging. This is why you should consider working with a good lender comparison site, such as Lendela. Other advantages of taking a cash loan in Singapore are:
- Cash loans are unsecured, meaning that your assets will not be at risk if you fail to repay.
- Because the loans are processed fast, many Singaporeans prefer them for emergencies.
- You can repay the loans pretty fast because their term limits are shorter compared to other loans, such as mortgages and car loans.
- Cash loans provide you with a good opportunity to improve your credit mix. This makes it also a good method of improving your credit score.
- Cash loans are released directly into the borrower’s accounts. This gives them greater flexibility on how to use the cash.
While the above benefits are indeed awesome, it is important to appreciate that cash loans might have higher interest rates compared to other options.
The Main Types of Cash Loans in Singapore
Now that you know the special benefits of using cash loans in Singapore, what options do you have? The following are the main types of cash loans you can take in Singapore.
- Payday Loans
As the name suggests, a payday loan is a type of credit advanced to a borrower, and has to be repaid in the next pay day. Although this mainly means clearing the loan by the end of the month, some lenders in Singapore might be willing to allow you more time to pay the loan.
- Small Loan
If your cash shortfall is not major, going for a small loan instead of a full loan might be a good idea. For example, people in Singapore opt for small loans to pay for car repairs and house renovations, among other expenses.
- Micro Loans in Singapore
Micro-loans are like small loans in many ways, but differ slightly because they are used to meet smaller financial obligations. For example, if you find that the cost of an item that you had budgeted is slightly higher than anticipated, a micro-loan might come in handy to plug the gap.
How to Apply for a Cash Loan in Singapore
The large number of lenders in Singapore and their conditions for short loans can make selecting the best option challenging. This is why you should use Lendela, which helps to not only simplify the process of application but also ensures you work with the best lender. Here are the main steps to follow:
- Check into the Lendela’s website to create an account and fill a short application for cash loan Singapore. The process only takes a very short moment.
- Receive offers from varying lenders.
- Lendela books an appointment with the selected lender and you sign the agreement.
- Receive the cash and use it in your preferred way.
A cash loan in Singapore might be one of the best options for you to cover sudden financial gaps because it is processed fast and is unsecured. To identify a lender with the best conditions, you should consider working with a comparison sites, such as Lendela.