A short-term personal loan is a suitable option if you need a small amount of fund and is unable to repay in a short time. The advantage of this kind of lending is it offers peace of mind compared to long and medium-term loans. A short-term loan comes with a short repayment period. This guide to getting the best short-term personal loan Singapore will first explain the types.
Types Of Short-Term Loans
- Invoice Financing
This is another short-term loan where you can borrow funds as a provision for outstanding invoices from customers. Lenders offer an early payment for unpaid invoices and receivables from them. The settling of the payment from the lender will take place after invoice settling.
- Personal Loan
This kind of loan is mainly for foreigners and helps make big purchases. Short-term personal loans have a lower personal loan interest rate compared to credit cards. It can be used to combine several credit card debts into a lower-cost and single monthly payment. Also, borrowers do not need to put any collateral, and lenders give loans without evaluating your creditworthiness.
- Payday Loans
It is a short-term and small loan for emergencies and is easier to obtain. In the terminology, ‘Payday Loan’ payday means when you have to write a post-dated check to the lender based on when the payday will arrive. But one important thing about this loan is it comes with a higher interest rate.
- Merchant Cash Advances
This loan type is more like cash than a cash advance but is set off as a loan in exchange for a part of forthcoming sales. Every time a person purchases, a section of the sale is taken by evaluating your credit card details. It is done till the repayment of the loan.
- Lines Of Credit
This short-term loan is compared to using a credit card, and through it, you can access funds at any time from the line of credit. There is no fear of exceeding the credit limit or maximum amount specified in the agreement here. Many businesses have been utilising this form of lending to attain their capital needs.
Where Can You Get These Short-Term Loans?
If you are searching for where can I borrow money in Singapore the answer is here.
- Money Lenders:
With the Ministry of Law of Singapore, secured loans can be acquired from moneylenders easily. If the borrower’s annual salary is led than S$10,000, the foreigners residing in Singapore get S$500, and permanent residents and Singapore citizens get S$300. For a borrower’s yearly salary of at least S$10,000 and not less than S$20,000, the permanent residents and Singapore Citizens can get S$300, and foreigners residing in Singapore will get S$3000. For a salary of at least S$20,000, the permanent residents and Singapore Citizens, and foreigners residing in Singapore can get six times the monthly income.
- Private Funders:
Under MAS’s excluded Moneylenders Act,’ private funders are accepted and have permission to land money onto accredited corporations or investors.
Singapore banks offer loans to people with lower interest rates starting from 3% yearly. Also, banks are flexible regarding loan amounts, from small to large. But you have to keep in mind that their approval process is lengthy. In addition, you must have a good credit score to get your loan sanctioned.
Advantages Of Getting Short-Term Loans
- Quick Loan Application Process:
Many short-term lenders offer an undemanding and swift application process. It lets you allow for the loan with ease. Several lenders have mobile applications and websites, which reduce the hassle as there is less paperwork. It provides a speedy turnaround time which makes the entire process beneficial for applying for a loan.
- Easy To Acquire:
Short-term loans are suitable for people who do not have optimum credit scores. They can get the required funds without getting their credit rating checked.
- A Better Option Than Traditional Lending:
These short-term loans come with slightly lesser risk than long-term loans due to their shorter maturity date. Also, the chances of even out accounts are comparatively less over a span. The time needed for the lender to subside also short. That’s why short-term loans are suitable options to go ahead with.
The Bottom Line
Whenever you decide to take funding to meet your needs, check out which lender is best for an easy personal loan in Singapore. Before committing to anyone, you must be completely sure that all paperwork is in place and you are getting it from a legit source.