This article teaches you how this type of loan works, but also how to spot a licensed loan agency. These are very important information to know before getting a loan, and a short-term loan is no different. Making informed decisions will bring you the best results, and a stress-free life. Learn everything you need to know about the process now!

Understanding What a Payday Type of Loan Is

This type of loan is a short-term loan, unsecured, and often with high-interest rates. The interest rate of a payday loan in Singapore cannot go higher than 4%, but lenders can add a 10% administrative fee to it. A payday type of loan is about getting a relatively small amount of money you need urgently; which you are going to repay until your next salary. This type of loan has a high and fast approval rate, which is also what you probably need. Another good thing about this type of loan is that you can disbursed it immediately after approval!

Most lenders will provide the required sum of money in maximum 24 hours, and you typically need to repay it in maximum 30 days. There are also penalties for late repayments, but with a payday loan in Singapore ( https://monetiumcredit.com.sg/loan/payday ), this fine cannot exceed $60. With this loan, you can often borrow between $100 and $1,500, depending on the state you are in, and the lender you choose. As previously mentioned, it’s an unsecured loan, which means that a collateral is not required. It can be used in any situation in which you need some money, and you need it fast (groceries, utility bill, etc.).

Eligibility and Application Process

One of the best features of this type of loan is its minimal requirements. And, this is exactly why many people go for this type of loan. But what are these requirements anyway? These are, often, the only requirements lenders have for this type of loan. They will, of course, differ depending on the lender:

• Be at least 21 years old (be of legal age, depending on the country you are in).
• Have a job (a steady source of income with which you can pay back the loan).
• Owning an active bank account.
• Having a valid ID.

Many lenders nowadays allow you to apply for a loan online, but you can also go physically if it’s more comfortable for you. When it comes to the application, the first thing to do is to choose your lender. Then, you fill out on an application, and submit all of the needed documentation. The lender might ask for proof of income, identity proof, and employment contract. If everything is correct, your loan will be approved; and you will receive the money in the shortest time possible.

Repayment and Costs

The repayment process, like with any type of loan, can be very stressful. And, it’s very important to repay your loan. The typical way to do it is to repay the sum plus the interest rate and fees at the same time. You could go for automated payment towards your lender, so that you don’t forget. Repaying later than you should means other fees. It’s better to avoid any problems, and to make sure that you keep your word and repay in a timely manner. If you needed a loan from a licensed money lender, show them that you are a client worth trusting!

As previously mentioned, the interest rates are higher than with other types of loans, mainly because they are unsecured and because of the urgency. If you are lending from a licensed loan agency in Singapore, they follow Government regulations, which means that they cannot rise the interest rate as high as they might like too. But still, they can be pretty high, especially when combined with the loan and other fees. And, with some financial organization you can surely pay it all back! Getting caught in a debt cycle is no joke, and you should be very careful about it.

Why Should You Choose a Licensed Loan Agency?

The Ministry of Law ( https://rom.mlaw.gov.sg/information-for-borrowers/list-of-licensed-moneylenders-in-singapore/ ) from Singapore provided a list of all of the licensed money lenders in Singapore, and before signing with a lender, you should check that list. Choosing a loan agency that is licensed is the most responsible thing you can do. Even if an illegal lender might give you the money faster, and have even less minimal requirements, the risk is way too high. Illegal lenders can change the interest rate and fees at any time, and you have no one to protect you from getting scammed. They harass their clients until they received the money, and more than often, people get caught in a debt cycle.

There are some available options if you are looking for a licensed loan agency in Singapore, and this is exactly why you should carefully research the lender before borrowing any money. Checking their website, their reviews, and their office can, most times, show you if the lenders are worth trusting or not. Scammers will, most likely, not invest into a professional looking website, or other similar things. If you are in need of fast cash, you are vulnerable, and therefore easier to fool. Do your research, and choose carefully and responsibly. There are money lenders out there who care about their clients, and you should choose those!

Conclusion

You might be in one of those situation where a payday loan is the only thing that can help. These kinds of things happen to everyone, and there is no shame in that. But, borrowing from a legal money lender, and having a repaying plan should be on your list before getting the loan. You are now familiar with the requirements, and with the application process. You have an idea about the amount you can borrow, but also about the interest rates. All there is left to do is to make a good plan, and to get your loan.