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4 Reasons to Get a Personal Loan from a Moneylender in Singapore

Finger taping on a cog concept of personal loan on a screen with other cogs in pictorial format in Singapore
Finger taping on a cog concept of personal loan on a screen with other cogs in pictorial format in Singapore

Financial emergencies come in many forms, from medical fees to study loans to a sudden car breakdown. In an expensive city like Singapore, personal loans are a great way to tackle such problems, in addition to achieving your life goals and protecting your finances during emergencies.

Here, we will explore what a personal loan is, and why you should take a personal loan from licensed moneylenders instead of banks.

What is a personal loan?

Personal loans can be secured (requiring collateral) or unsecured loans and you can get them from either bank or licensed moneylenders in Singapore.

Personal loans can be used for almost any personal expenses – from downpayment for your home, funerals, wedding expenses, tertiary education to unexpected bills such as emergency medical fees (medical loans) or car repairs.

Licensed moneylenders in Singapore offer personal loans with low interest rates and a streamlined and friendly process. First-time borrowers might need to have the right expectations before taking a loan, as it also comes with a maximum loan cap, interest rates, late fees, and other charges.

Why take a personal loan in Singapore from licensed moneylenders instead of banks?

When it comes to borrowing, we have several options – such as banks, licensed moneylenders, or close personal contacts. Between banks and licensed moneylenders, there are 4 main reasons why you should favour taking a personal loan from the latter instead of the former:

1. Faster loan approval rate

In the face of financial emergencies, speed is key when it comes to getting different types of personal loans, such as fast cash loans, approved. Licensed moneylenders can approve your loan on the same day, usually in less than 30 minutes. By contrast, banks may take up to 2 weeks.

This is because licensed moneylenders benefit from having less red tape and less strict credit checks. Thus, regardless of whether you need payday loans or urgent cash loans, licensed moneylenders can get you your cash faster than banks.

2. Higher chances of approval

Licensed moneylenders offer higher chances of loan approval than banks due to less stringent requirements. For instance, banks may reject your loan if you have a bad credit history, have no stable income, or earn less than $20,000 a year. On the other hand, licensed moneylenders simply require you to be employed and not have a history of defaulting on payments to approve your loan.

Furthermore, if you have a bad credit history with banks, you can still get approval from licensed moneylenders. This is because some moneylenders will not check your credit history through the Credit Bureau Singapore (CBS), and those who do check are generally more lenient than banks.

Instead, money lenders will check your loan details with other moneylenders through the Moneylenders Credit Bureau (MLCB), which shows borrowers’ existing outstanding loan principal amount with other moneylenders, their total payable amount, repayment records, and borrowing limit.

3. No collateral needed

It’s easy to get loan approval for unsecured short term loans with moneylenders. This way, assets like your house or car will not be at risk, should you default on your repayment.

4. Great for short-term urgent loans

Licensed moneylenders are better than banks for short-term urgent loans because of the faster approval process and higher loan approval rate. For example, if you just need a payday loan that you can repay in one month when your salary comes in, it is less of a hassle to borrow from licensed moneylenders.

Need a personal loan? R2D Credit offers competitive rates and streamlined, professional service. Apply for a personal loan with us now.

Disclaimer

The information provided on our website is for educational and informational purposes only and is not intended to be a substitute for legal or financial advice. While we try to ensure that information on this website is accurate, we do not warrant that the information will be free from error. We shall not be liable for any loss or damage that may arise from the use of this website.

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