Taking a loan is a huge decision that you need to think about clearly. You don’t simply wake up in the morning and take a loan. You need to be certain that your reason for taking a loan is genuine and substantial. Of course, everyone has their reasons for taking loans and there are several reasons for one to take a loan.

However, you need to be keen about your reasons. This is due to the interest rates you will have to part with from the loans. Some loans have higher interest rates than others and this is something that you might also want to consider. So, before you request for a fast cash loan in Singapore, here are some of the reasons why you might want to consider taking a loan for:

To Finance Home Remodeling

Home remodelling is not an easy task. In fact, it has a lot of costs that can drain your pockets. This is why you might have to take a personal loan to help you get the job done properly. It doesn’t matter what exactly you want to remodel as anything that involves this job is costly.

Take, for example, changing your tiles, remodelling your kitchen or installing solar panels. All of these activities cost a considerably high sum of money. However, there are those renovations that will cost a little higher than the ordinary. For instance, installing a swimming pool where it has never existed is going to cost you a lot.

When You Are Moving

The costs of moving can sometimes be unbearable. This is especially true when you have a family and have bulky luggage. Hiring professional movers is always recommended, even if their costs are high. Although, local movers within the vicinity of your current home may not be very expensive.

However, when you are making a move from your place to a remote area, the costs can shoot to the sky. This situation may warrant you to take a personal loan to fill in the gaps left by the shortage of funds. It is, however, imperative that you analyze whether or not you will be able to pay off the debt after moving.

Funeral Expenses

Losing a loved one is a terrible thing to happen to anyone. The pain is usually overwhelming and the loss is unbelievable. What also burdens a person or family are the expenses involved in the funeral. Most times, death comes unexpected, thus, nobody is usually prepared for the expenses. If it catches all of you off-guard, then a loan might just be your saviour. Giving a loved one a decent and worthwhile send-off is not a cheap affair and a loan can help you get this done easily.

Medical Bills

This is another emotive issue that may force you to take a loan. Most of the essential services may be covered under your medical cover, except for a few other bills. Some of the extras that you may need a loan for include cosmetic or plastic surgery or even fertility treatments. Aesthetics treatments do cost a lot of money and oftentimes, your savings aren’t enough to cover the costs. This is when applying for a personal loan comes in handy.

Every country has its unique laws that guide every process. In Singapore, there are equally certain rules and regulations controlling lending and borrowing. Therefore, you need to know all of the basic guidelines before taking a loan. This will help you stay within the right lane and avoid any penalties. There are certain factors that can help you get instant loan approval in Singapore. There are also other factors that will help in applying for a personal loan or any other types of loans. In a nutshell, here are some of the factors and guidelines to qualify for a loan in Singapore:

Age

As with any other country, Singapore has an age barrier for taking loans. While some countries are stricter and others less strict, Singapore is considered fair in terms of the limits. You need to be between 21 to 65 years old to qualify for a personal loan in this country. If you fall under this bracket, a reputable lender will easily give you a loan based on your annual income and other credit-related factors.

Depending on the specific lender you are dealing with, the annual income can be different. Most of the time, S$30,000 in annual income is the minimum amount a lender would expect you to bear. However, some lenders don’t mind giving loans to those who earn below this amount. In case you are new in Singapore and are not a native, the basic annual income you’ll need if you want to take a loan is around S$40,000 to S$60,000.

Proof of identity

This will help the lender prove that you are a citizen of the country and that you are eligible to get a loan as a native. Basically, you will provide your identity card as proof of your citizenship. Also, in case you don’t have an ID, you can offer your employment pass or passport for easy identification.

Address authentication

You will need to show proof of address so that the lender knows where you reside. This is for purposes of accountability of the loan in question. Here, you can provide documents regarding your residential address. Some of the examples of such documents include utility bills that have your name and address clearly shown.

Income proof

You will also need to prove how much you earn. It is not just by word of mouth but through proper documentation. You will need to provide your central provident fund for the past twelve months. Also, you can give your contribution history statement or latest income tax notice of assessment. Some lenders may need you to provide your latest payslip so that they can tell how much really gets into your account every month.

Credit score

Some types of loans require you to have a high credit score so that you can get the loan. Credit scores or otherwise known as credit reports, are calculated based on how efficient you pay back your loans. If you have been taking frequent loans and have a high credit score, the better your chances are for a loan. To be eligible, you need to maintain a high credit report.

Not all loans are equal. Some have stringent terms while others are a bit more relaxed. The type of loan you choose depends on what you intend to do with it. Whenever you need credit, you have to understand which exact loan befits your situation. Otherwise, you will take a loan that doesn’t directly apply to your condition. As you commence comparing loans, you will learn that there are different factors that come in play. You need to clearly understand everything before applying for easy cash loans in Singapore. To start off this comparison, here are some of the main types of loans available:

Secured personal loans

From the name, these types of loans require collateral as security for the loan. This can either be a certificate of deposit or a car logbook. It can even be a title deed to a property you own somewhere. Anything that can stand for the value of the loan you are picking is appropriate for use. These types of loans often have lower interest rates when compared to the unsecured personal loans, which is covered below.

This is mainly due to the use of collaterals, which brings down the risks involved. The presence of an asset as a back-up for your loan is enough to guarantee for the creditor. The only downside of such an arrangement is that there’s the potential of losing an asset you used as collateral. For instance, if you fail to honour your debt within the stipulated timelines, the creditor can seize the property under collateral.

Unsecured personal loans

Unsecured personal loans are the direct opposite of secured loans. In this case, there is no collateral used to secure the loan you are granted. They tend to have a higher interest than the secured loans due to the high risk. They are appropriate for major purchases and heavy spending for investment. The downside of such loans is that the creditor will use your credit scores to determine your loan limit and how you can repay a loan. Those who have higher credit reports are more eligible for better loans than their counterparts.

Payday loans

These are short-term loans that cater to instant needs by a person. Most of them are normally due by the next day, hence the name payday loans. Based on your location and rules, there are different rates that lenders use to determine loan amounts and interest rates. They are best for emergency money when you are stuck and don’t know what to do. The downside of them is that they have high-interest rates.

Credit card cash advances

Some credit cards offer cash advance against the balance you have at the moment. Most of these loans are short-term and require fast payback. The service allows account holders to withdraw money at a bank or other financial institution, up to a certain amount, either via an ATM or over the counter. If you have a credit card, this would be known as your credit limit or a certain percentage of it.

They are best for paying cash where the shop you want to purchase from doesn’t permit cash payments. The downside is that you might end up spending a lot on the interest rates and fees. This is because it is different from normal spending using your credit card. The interest begins to accrue once you have made the withdrawal.

Starting up a business is not a walk in the park. It takes immense dedication and commitment to get things rolling. A small business that has just started is like a baby. It needs constant attention and dedication until its full growth. Whether it is the cost of hiring employees or buying new equipment, everything can escalate and become unbearable. This is especially true if you don’t have enough money and also don’t have a sustainable source of income. Therefore, an instant cash loan in Singapore may be appropriate to cater for all your business’ needs. Here are some of the ways in which a loan can boost your startup:

Helps You To Maintain Control Of The Business

The major challenge that many businesses face is lack of funds and this usually raises a lot of concerns and problems. Due to the lack of funds, many business owners opt to get investors to chip into the business. Unfortunately, nothing comes for free and therefore, most of the investors require a percentage of the business. The biggest downside of this investment is that some investors want their shares for a lifetime. Meaning that the investment they make will grant them returns throughout their lives. On the other hand, you can apply for a loan and cater to the shortages as the business grows. Later on, you can clear the debt and maintain full ownership of your company or start-up.

Helps In Purchasing New Equipment And Items For The Business

Depending on what type of startup you have, you will need money to buy a variety of equipment. In most cases, service-based businesses don’t require heavy financing for equipment. But on the other hand, product-based businesses tend to have a heavy cash requirement. Due to this, it makes perfect sense to take a loan that can help you jumpstart the business. In some other cases, you may also need to upgrade the current equipment that you have at hand. Old items in your business may be inefficient and thus, upgrading is necessary for boosted efficiency.

To Manage Inventory

Inventory is among the biggest and toughest expense to manage in several sectors. The dilemma is you need to invest in the goods you are going to carry until your customers can purchase them and cover the cost. Once you are in business, you will need to constantly increase and replenish your stocks in order to meet the demand as well as provide your consumers with better alternatives. In case you are running low on inventory and have an on-peak season coming up, it would be wise to take a loan. This will help you finance the costs of getting inventory, as you sell the items and recover your money. Sometimes you have not managed your cash well, and that is why you need to take a loan for bringing in new items.

To Hire More Staff

The most common justification when it comes to considering a loan for small businesses is the chance to invest in the potential growth of your business. Continuing to grow your business will help to ensure that your revenues are not stagnant or declining when business is booming. The need to increase the staff size comes with the growth of your company. The costs of paying employee salaries are high and can get overwhelming with time. Due to this, you can easily get stuck and this is why you will need to take a loan to pay for the extra labour needed in your startup.

Helps Your Business Grow

The company’s continued development has many expenses such as ads, new property, and building renovation. You’re unlikely to have the cash available to pay for all of it unless you draw it from the accounts that keep the business going. A loan can make a standstill business grow to greater heights. Loans will help you cover the costs of increasing your company without consuming your operating funds so whilst growing your business you can continue to satisfy the demands of your consumers. It can be a saviour when you are stuck and don’t have a clue on what to do to make things better.

Personal loans are some of the most common types of loans taken by a majority of people. They are usually efficient and convenient when you need cash to finance different projects. Most people use personal loans to consolidate debts and pay for emergency expenses. Some also take personal loans for home renovations or improvements. The number of people taking personal loans has gone up by a great extent. Most people need quick cash loan in Singapore so that they can sort out urgent issues. Here are a few things to note about personal loans, before deciding to take one:

Different Types Of Personal Loans

The two main types of personal loans include; secured and unsecured personal loans. For secured personal loans, the interest rate is a bit lower than its counterpart. This is due to the presence of collateral used to cater for the risks of the loan. On the other hand, unsecured loans tend to have a higher interest rate due to the high risk involved with them. There is no collateral or item to hold and thus, the lender solely depends on your ability to pay.

Their Impact On Credit Scores

As a borrower, the primary thing you want for your credit score is for it to rise. The more it rises, the higher your loan limits every time. Depending on how you are paying for the loan you take, the credit score can either go up or down. A better credit balance can be achieved through personal loans and getting various types of credit help to improve your credit score. As a personal loan is paid off in recurring monthly payments, if most of your credit is revolving, you can maximize your credit mix.

Besides getting a better credit mix, making your personal on-time loan payments helps to build a consistent payment history that can improve your credit score. In addition, it helps to lower the credit utilization rate. Since it is an instalment loan, your credit utilization ratio is not affected by a personal loan, which determines how much of the total revolving credit you use. When replacing revolving debt with an instalment loan, using a personal loan to pay off revolving debt, such as credit card debt, will help you improve your credit scores.

How Personal Loans Work

You need to know how personal loans work so that you don’t go against the dictates. For starters, you need to understand that personal loans are a type of instalment loan. In case you don’t know what an instalment loan is, it is when you borrow a fixed amount of money and then end up paying for it over the course of several months. The loan accrues interest, and so, you will need to pay a higher amount than the one you took. Most personal loans range from 1 to 7 years, depending on the lender.

Also, they are not like other loans where you can use the same account for a new loan. Once you have cleared your payments, the account you used will be closed. Therefore, it is important for you to clearly think about why you need the money before taking it. Your reason should be substantial due to the interest rates involved.

Where To Get Personal Loans

Like any other loan, a personal loan can be achieved from legal moneylenders such as banks. In most cases, many people opt to take these loans from banks, due to the trust and reputation they have. However, you need to understand that banks are not the only source of personal loans. There are equally other credible and reputable lenders offering personal loans to individuals. Some of these lenders include; peer-to-peer lenders, consumer finance companies, credit unions and online lenders.

You need to evaluate all of these lenders and find an appropriate one that fits your needs and demands. Due to the emergence of many online lenders nowadays, you need to properly check for authenticity. This is to ensure you deal with genuine lenders only and not fraudsters.