Facing a temporary cash crunch and have no friends to fall back on? If so, you can consider taking an instant payday loan.
An instant payday loan is just what its name suggests. You get this instant loan against your pay and the loan is deducted from your next paycheck, hence the word ‘payday loan’. As this loan is approved rather quickly, it is called instant payday loan.
Payday loans are quite popular among salaried individuals, and it is not hard to understand why. This loan, offered by legal money lenders in Singapore, has many advantages over personal loans given by banks and large financial institutions.
Want to know what these advantages are and how you can benefit from a payday loan? Read on.
4 Top Advantages of Instant Payday Loan
Quick Cash Boost
When there’s a temporary financial emergency, you need cash fast, right? That’s why there’s no point in approaching your bank or credit card company for a personal during such a time, for they take anything from a couple of weeks to a fortnight to approve a loan.
However, with instant payday loan, you can get the money quickly, sometimes within a couple of hours after verifying and submitting the required document.
Bad credit report is not a hindrance
If your credit score is below par, you can forget about ever getting a personal loan from a bank or big financial institution. However, in case of a payday loan, your credit score doesn’t count for much. You can easily get a payday loan, whether your credit score is high or low.
You must meet two requirements for payday loan. One, your salary must meet the minimum salary criterion. Two, you need to submit a proof of your employment.
No Paperwork
You need to do a lot of paperwork when applying for a loan from a bank be it fast cash or a quick loan. On the other hand, you can apply for a payday loan online. This is another important benefit of payday loan.
Small payback cycle
You are more likely to fall back on repayment in case of conventional personal loans than payday loans. This is because the latter has a very short payback cycle. In most cases, the money is deducted from your next paycheck.
While you can defer repayment in case of payday loan, you should avoid doing it. As you have seen, payday loans offer many benefits that other loans don’t. All of these benefits come at a cost (remember, there’s no such thing as a free lunch): steep interest rate.
Compared to other loans, payday loans charge at a higher interest rate. That is why, it is your best interest to pay off your instant payday loan as soon as possible.
Keep this in mind
While payday loans can be of great assistance at certain times, you shouldn’t make it a habit to take one every month. Also, remember that a payday loan is only for an emergency. Finally, when taking a payday loan, speak to a few licensed money lenders before finalizing one. This may help you get the best possible deal as the interest rate of payday loan varies from lender to lender.