5 Features That Make Payday and Monthly Loans Attractive

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5 Features That Make Payday and Monthly Loans Attractive

Close up of a person’s hands holding bills above a desk above credit cards, a laptop, calculator and notepad, wondering if they should get a payday loan
Close up of a person’s hands holding bills above a desk above credit cards, a laptop, calculator and notepad, wondering if they should get a payday loan

Ever find yourself in need of a small boost in funds, but your monthly salary deposit is still a few days away? That’s when payday loans and monthly loans come in handy. Payday loans are short-term loans that are issued quickly for immediate needs and must be paid back entirely by your next payday (hence the name). For this speed, they usually come at high interest rates. Monthly loans, as the name suggests, need to be repaid in monthly instalments.

Infographic on the advantages of payday loans and monthly loans

1. They tide you through emergencies

Nobody likes to be met with unanticipated bills, be it to pay for car repairs (without claiming car insurance, as this keeps insurance premiums low), or paying upfront for a hospital visit before your medical insurance claims are processed. Sudden payments can upset our carefully planned monthly finances.

Payday loans are a good option if you want to avoid having to dip into your savings or cut back on your lifestyle in case of emergencies.

2. They help you seize opportunities

Imagine your favourite furniture store has a flash sale on that couch you’ve been eyeing for a long time, but the sale ends before your paycheck comes in. In such a scenario, payday loan services come in handy, allowing you to get access to funds on the same day as your application, which means you can purchase your desired items.

3. They are flexible

The structure of both payday loans and monthly loans is simple. Payday loans need to be fully repaid with interest by the recipient’s next payday. With monthly loans, the total interest and principal amount are broken up into a set number of monthly instalments of equal amounts.

It’s no surprise that payday loan services are popular for such flexibility. From paying for a visit to the GP with a payday loan, to paying four monthly instalments for the new sofa in your living room, it’s up to you to decide the optimal way to utilise these loans.

4. They are swiftly approved

Payday and monthly loans require few approvals due to their simple and fuss-free nature. Singaporeans and PRs only need to go to the lender’s office for face-to-face verification (a compulsory step), and the lender can use the borrower’s personal details to retrieve other necessary information using Myinfo. Foreigners are required to provide additional information such as their passport, proof of employment (work permit), proof of income (payslips), as well as proof of residence (tenancy agreement).

5. They protect your credit rating

Your credit rating is essential for purchasing and enjoying a wide variety of things in life. Many of us will often require credit for various big-ticket purchases, ranging from the downpayment of your Singapore flat to getting a mortgage. Failing to pay your existing loans in time negatively impacts your credit rating, making it harder to seek loan approvals at banks, or even apply for premier credit cards. In contrast, loans from licensed moneylenders, including payday loan services, do not take into account your credit rating, allowing for an alternative that is easily approved, as long as you adhere to the terms of the contract. If you have a small loan that you need to service or risk lowering your credit rating, a payday loan is a useful alternative in the short term.

Visit R2D Credit today to learn more about our payday loan services so you don’t have to miss out on the benefits.


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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