Financial emergencies can arise at any time. It can be a medical emergency, a business emergency, or you may just need cash to pay off your higher cost debts. No matter what the situation, you need quick funds. That’s where instant cash loans come to your help. Instant cash loans offer a quick, easy, and flexible way of raising funds when you need them the most, these loans are a type of personal loan available in Singapore.
Where to get an instant cash loan?
If you are planning to get an instant cash loan in Singapore, you can turn to a registered, licensed moneylender for a quick and hassle-free borrowing experience. These moneylenders offer instant loans at flexible, low interest rates, with minimum documentation. Check out some key benefits of borrowing from licensed moneylenders:
Minimum documentation: Moneylenders require very few documents to process your loan application. Any valid ID, SingPass, and some other documents are enough to get the process started.
Flexibility: When you choose to borrow from a moneylender, you get flexibility in choosing the term of the loan.
Collateral: Most often, no collateral is required when you are getting an instant cash loan from a licensed moneylender.
Attractive interest rates: The maximum interest rate any moneylender in Singapore can charge is 4%.
Fast approval and disbursement: Some moneylenders can even approve and disburse your money within one hour of receiving the application.
Interest rate charged by a licensed moneylender on instant cash loans
Effective 1 October 2015, the interest rate that a registered and licensed moneylender in Singapore is allowed to charge cannot be more than 4% per month, no matter the loan is secured or unsecured. In case you are not able to pay back your loan in time, the maximum late interest that a moneylender can charge is 4% per month. The interest is always calculated on the remaining principal amount.
Fees and charges involved in borrowing from licensed moneylenders
If the loan contract was signed after 1 June 2012 but before 30 September 2015: In this case, a moneylender can charge the following types of fees:
- Fee for not repaying the principal or interest on time
- Fee for early payment of the loan
- Fee for making changes to the contract terms
- Costs incurred by the moneylender to recover the loan amount
- Fee for each cheque that was issued by you and got dishonoured
- Fee for all unsuccessful bank account GIRO deductions
Effective 1 October 2015, moneylenders are allowed to impose only these charges on you:
- Up to S$60 for every late repayment
- Loan approval fee of up to 10% of the loan principal amount
- Legal costs incurred to recover the loan amount
The sum of all the charges including interest, upfront administrative charges, late interest and fee payment charges can’t exceed the principal loan amount.
Things to consider before applying for an instant cash loan
- Make sure you are not taking an instant cash loan for something like a foreign vacation or shopping. Borrowing money for such things can put you under significant debt burden. Go for an instant cash loan only when there is an emergency and you have no other alternative.
- Always borrow money from a bank or a licensed moneylender. Borrowing from illegal moneylenders can put you in a tough situation.
- Make sure you have a plan for paying off the principal amount, as well as monthly interest charges. Any default in paying off the loan will affect your credit score.
- Considering how easy it is to get an instant cash loan, you should try and avoid borrowing more than what you need.
- Make sure you have no other cheaper alternative.
- It’s always best to know the consequences of not repaying the loan in time.
- Make sure you understand the terms and conditions of the loan. Ask the moneylender to explain everything in a language that you understand and to provide you with a copy of the contract.
How to identify illegal moneylenders?
You can visit the website of the Ministry of Law to get the full list of licensed moneylenders in Singapore. However, whether licensed or not, a moneylender can never:
- Use a language that is abusive or that threatens you
- Ask you to provide your SingPass user ID or password
- Request you to submit your NRIC or other personal documents
- Take your signatures on a Note of Contract that is blank or incomplete
- Deny you a copy of the contract
- Keep a part of the loan amount for some reason