Types Of Loans Available

Finance

 

Are you stuck in a sticky financial situation and are in need of cash urgently? For some, it might be uncomfortable and difficult to approach friends and family for financial help. Loans are a solution to help you regain stability in terms of finances.

However, there are many different kinds of loans. When one is in an emergency financial crisis, they might be unsure of what type of loan to take and thus feel overwhelmed.

To ease your mind, some common loans available from moneylenders in Singapore are introduced below.

Payday Loan

Payday loan Singapore is one of the most popular and common loans in Singapore. Payday loans are also known as payday advances, and cash advance loans. These loans are short term unsecured loans, meaning that a guarantor is not needed to secure the loan.

Payday loans are meant to tide you over until your next pay check arrives. If you are in an emergency that is time-sensitive and you need money but can’t wait till your next pay check arrives, a payday loan is suitable for you. 

A payday loan requires you to be employed. People with bad credit ratings can apply for payday loans as long as you are employed.

However, the interest rates for payday loans are usually higher than average.

Personal Loan

Personal loans are also unsecured. This means that a guarantor or collateral is not required to secure a personal loan.

Personal loans are suitable any of your own personal reasons. This can range from settling debts in business, making home improvements and dealing with unexpected expenses such as medical fees incurred during medical emergencies. They are also helpful when we want to make urgent purchases or planning a vacation.

Foreigner Loan

When working outside of your home country, one might face unforeseen financial situations that are complicated. In a place where your friends and family are not around, it might be difficult to source for financial help. As such, foreigner loans are designed to help foreigners in Singapore obtain urgent money easily.

In order to take a foreigner loan, you need to be a foreigner with a valid working permit from Singapore and be at least 21 years of age.

Business Loan

Business loans are to help companies to expand their business. This can come in the form of equipment upgrade to remain competitive in the market or to use as capital to establish a business. 

A business loan is a short term load that has a fixed repayment schedule. It is suitable for businesses who need some financial help to keep their business going.

A Note On Taking Loans

Before taking any loans, it is important to check that the moneylender you are borrowing from is licenced to prevent from getting scammed.

 

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