Here in Singapore, there are many situations which require cash to resolve, failing to do so will result in a range of consequences. Taking a short-term loan is an effective method that can help many people in times of need. However, several factors must first be taken into consideration, namely, eligibility criteria, interest rates and the reason for taking the loan.
You should understand know these factors by heart if you intend to take an instant short term loan from a moneylender.
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Eligibility Criteria
Technically, many short-term loans from moneylenders are unsecured loans. This means that there are certain criteria a borrower must meet before qualifying for these loans. There are three basic requirements that one must meet before qualifying for an instant short term loan. Firstly, the borrower must have a steady source of income from their careers. Secondly, the borrower must be a Singaporean citizen or foreigner that is permitted to reside and work in Singapore. Thirdly and lastly, the borrower is required to be 21 years old to qualify for an instant short term loan.
Here is a summary of the eligibility criteria:
- Steady source of income
- Singapore Citizen or Permitted to Reside and Work in Singapore
- Above the age of 21 years old
Interest Rates
After qualifying, it is important to note that the interest rate is one of the most important things to know when borrowing from a moneylender. While various moneylenders have a different interest rate and ways of calculating them, it is important to check form the moneylender of how the interest is calculated and deducted. Generally, the interest rates of moneylenders tend to be on the higher side as compared to banks because it is an unsecured loan. Unlike taking a property or car loan which is secured, a short term loan has higher interest rates because a moneylender does not need additional security as compared to banks or financial institutions.
Why Use Moneylenders?
When engaging a moneylender for any loans, it is important to check the reliability and type of moneylenders you are borrowing from. Licensed moneylenders are the way to go when taking up instant short term loans. A good moneylender would stand out from other shady money lenders in terms of reliability, honesty, being an established company and look out for your interests. In regards to instant short term loans, moneylenders would advise you to take them only if there is urgency for the money. Due to the nature of the loan and the interest rates, it would not be recommended for borrowers to return over a long term period. The loan is suitable for financial emergencies that require immediate cash flow to resolve the issue. If you need instant cash while being able to return it as quickly as possible then moneylenders are the right choice for you. All you would have to do is meet the eligibility criteria and produce the relevant and necessary documents to the moneylenders. After the verification, the loan is approved and you will receive the money for your needs.
