When faced with an emergency and you do not have any savings left in your account, it can be a stressful experience. But you do not have to worry because there is a solution to managing the emergency through getting a personal loan in Singapore, and this will help you ease your financial challenges.
This article will guide you on the best types of personal loans that you can get fast and have your finances in order.
What is a Personal Loan in Singapore?
A personal loanrefers to a type of debt accessed from banks, licensed money lenders, saccos, and credit unions to repay it in the short term. Such include emergency loans, debt consolidation loans, car repair loans, and many others.
They are paid in equal monthly installments and with a defined rate depending on the financial institution with which one wishes to work with.
A personal loan is directly credited into your account, contrary to other loans such as a mortgage loan payable to the facility owner.
With this in mind, we are now able to know the type of personal loan that one can access in Singapore in times of emergency.
Unsecured Personal Loan.
This is a type of loan that does not require collateral for approval. You do not have to put your assets at risk of being auctioned, but you will get quick access to the loan.
Banks usually do not offer these types of loans because of their lengthy approval process.
However, licensed money lenders in Singapore have offered support to people looking for these types of loans. You only need to prove a source of income and eligibility, and within one day, you will have accessed the money. But on the other hand, it is essential to carry out thorough checks on the money lender you are dealing with.
This is because there are many sharks out there exploiting innocent borrowers unknowingly. One of the most reputable licensed money lenders in Singapore that offer Unsecured personal loans is OTC Credit in Singapore.
Besides, you can get a list from the ministry of law website that has all the licensed money lenders in Singapore and work with them.
Debt Consolidation Loans.
A debt consolidation loan is a type of personal loan that is used to combine and pay off outstanding debts in a quick way while at the same time, saving on the interest factor.
If we take an instance of a credit card loan, it charges high interest and can sometimes get out of control. Still, you could be holding many other loans and about to fall due, yet you do not have money to repay them. This emergency personal loan can be an excellent solution to help you escape the crisis.
However, if you are willing to consolidate your loans, including the credit card loan, you should refrain from using the card so that you are in a position to regulate the finances for this new loan repayment.
Secured Personal Loans.
When you do not have sufficient cash flow cover to help access a loan, getting a secured loan to cater for an emergency is a good solution. This type of loan requires one to take a loan against collateral. For instance, giving out a log book to serve as a security for the loan. One reason for such kind of loan is when looking for emergency medical support. If the hospital bill is still rising, one can opt for such a loan to meet the urgent medical need rather than keeping your patient in the hospital.
It is also essential that this is a risky loan in that if you fail to pay your installment on time, the lender can sell off your asset, hence the need for discipline.
How to Choose Your Emergency Personal Loan.
Researching for the best organization to work with when needing an emergency personal loan is critical. Do not fall for the very first company you meet. Below are some factors to consider before taking a loan.
- Interest rate- If your credit rating is good, then the chances of getting a low-interest loan are high. In such a case, compare several lenders and see the one that offers the best interest rates based on your credit score and avoid those that charge high rates.
- Personal Income- Before settling for a specific amount, consider your monthly income and evaluate whether you will be able to repay in the period under question. At this time, you can be able to negotiate with the lenders on the amount of money you can be able to repay monthly. This will prevent default, and your credit score will be impacted positively.
- Turn Around Time– How fast do you expect the money to hit your account? Will the lender be in a position to give the money at your stipulated time? This is important so that it meets your need as and when required.
- Fees Chargeable– Going through the lenders’ terms and conditions is essential, especially when accessing an emergency personal loan. By doing this, you will know how much the origination fees and the late payment fees are and plan for such eventualities.
- Credit Score Requirements- When taking a personal loan, check your credit score and evaluate how it will impact your interest rate and the amount you can borrow.
Where Can One Get an Emergency Loan?
There are many sources of getting a personal emergency loan from banks, saccos, and credit card issuers are all sources of getting an emergency loan. One of the most recommended organizations in Singapore is the Licensed Money Lenders. Getting a loan with one OTC credit will give you peace of mind and assure you of the best interest rates.
In the same case, OTC credit has professional staff who will take you step by step until you understand the type of contract you are about to get into.
Visit OTC Credit and submit a short online application. This should take a fees minutes, and you will get the much-needed help in a short time.
