Unforeseeable events and financial emergencies could happen to anyone at any time, whether or not you already have an existing loan. However, having an existing loan does not mean that you are unable to apply for more funds for your current situation. Some of the emergencies that could necessitate asking for a second loan include medical bills, education funds, and a wedding.
Similar to the first loan, the borrower is required to meet specific requirements to qualify for the second loan. If you are already making payments to the first loan, the licensed moneylender will evaluate your repayment capacity before approving your application for the second loan.
As such, if the licensed moneylender believes that you are unable to pay back two loans comfortably, they will not approve of your request for a second loan. And in that case, you may need to look for other options to borrow additional funds while on a loan.
1. Seek a second licensed moneylender
While it might seem like an excellent choice to seek a second licensed moneylender, this option is not as easy as it seems. This is because you will have to go through the necessary loan eligibility requirements once more.
Licensed moneylenders will look at your income and your repayment capacity before deciding if you are eligible for a second loan. If you do not qualify for a loan from one licensed moneylender for one reason or another, there is a high chance that the second licensed moneylender you seek will reject your loan request as well.
2. Apply for a loan on top of a loan
Licensed moneylenders understand that borrowers might require more than one loan to deal with various financial emergencies that come their way. As a result, licensed moneylenders in Singapore have an option to top-up loans for their customers. A top-up loan will increase your existing loan limit, which eliminates the need for you to seek another licensed moneylender.
Some licensed moneylenders also allow you to combine your new loan with the old loan and treat it as a consolidated loan. How much money you can get on top of another loan depends solely on your eligibility. The lender will look at your credit score, current liabilities, and income before approving your loan request.
3. Take more than one similar loan
If you meet the eligibility set out by the licensed moneylender, taking more than one similar quick loan in Singapore is another option. However, the requirements for taking a similar loan in most financial institutions in Singapore are stringent. If you are most likely going to apply for a top-up loan, the best option is to speak to a licensed moneylender that can quickly fulfil your increased need for additional funds.
Taking a top-up loan from the same licensed moneylender can be simple due to the documents that were previously submitted and the trust that was built. The licensed moneylender knows your ability and reliability as you are already servicing an existing loan with them.
Borrowing additional funds is an excellent way to finance all types of projects or even deal with personal emergencies. However, you should ensure that your finances are not significantly affected by taking a second loan.