by Susan Paige
Need fast cash? If you are facing a crisis or unexpected financial emergency, it can be beneficial to apply for a personal loan from licensed money lenders. Requirements for a Singapore cash loan are not too stringent, especially if you’re taking a loan from licensed money lenders as opposed to a traditional bank. It is a credible financing option, especially for individuals with poor credit history who might get rejected from the traditional banks due to a low credit score.
Follow these quick tips to get instant cash loans in Singapore.
1. Choose a licensed money lender that provides fast cash loan options
Licensed money lenders tend to be quick with their approval process as opposed to conventional financial institutions. Generally, licensed money lenders understand that during emergencies, you cannot afford to wait for your fast cash loan application to be approved, therefore they expedite the approval process.
The steps that you would generally need to take would be to fill up an application form and the team will get back to you on the loan eligibility within an estimated two working days from date of the application. This way, loans can be distributed immediately to you in cash without having to wait for cheques to be cleared or funds to be transferred to your account. There are also money lenders that can get you instant cash loans approved within minutes online – so do your research on the best one that suits your needs before applying blindly.
- Prepare the correct documents
Make sure you are able to provide the relevant documents for cash loan requirements. Whether you’re applying with a bank or a licensed moneylender, you’ll mainly need these two documents: your NRIC and income statement. In general, you should also prepare your income statement, CPF statement or notice of assessment; proof of residence or utility bills just in case the money lender needs additional information.
- Know your credit score
You should first understand your credit score to have a gauge at the likelihood of money lenders accepting your cash loan application. Typically, your credit score is a four-digit number used by money lenders and banks as an indicator of the likelihood of you repaying your debt. The higher your credit score, the higher the loan amount that you may be eligible for.
The score ranges from 1000 to 2000, where 1000 would indicate a high risk borrower that might default on payment; whereas 2000 would mean that you have a good chance at paying back your loans on time. With a small payment, you can find out your credit score from the Credit Bureau in Singapore. This score, together with a risk grade and description will be provided to you in the credit report.
However, you should not just rely on your credit score to get a fast cash loan approval as it’s just one factor used in the application process. Licensed money lenders are also not so strict on seeing excellent credit scores. Other more important factors relating to your income can also be considered during the approval process such as your employment status, annual salary, length of employment, and/or bankruptcy/litigation information.
- Know your eligibility
Eligibility for cash loans can vary depending on the type of loan you wish to take and the financial institution you choose. With banks, there are more stringent requirements to get a cash loan where they need you to have a minimum annual income of at least S$30,000. However, if your annual income is lower than that, say less than $20,000, you’ll still be able to get approved for fast cash loans in Singapore from licensed money lenders.