- September 2013
- Posted By JohnnyG
- 0 Comments
There are many different kinds of personal loans, but for the purposes of this article we will be talking about short term loans, sometimes referred to payday loans. These types of loans are ideal for many people. Let’s face it, many people have poor or no credit, for one reason or another, so getting a conventional loan through a bank or other lending institution can be almost impossible. Even if you do have good credit, the bank loan process can be a long one, taking weeks or more for approval. You have to jump through a bunch of hoops, have to be approved by the lending committee, and approval is dependent on your income to debt ratio.
Who has the time to wait two or three weeks to get approved for a loan? If you are seeking a personal loan Singapore, it is usually for a problem that needs to be taken care of right away. Maybe your vehicle broke down, had some kind of medical emergency, or even just have to pay an important bill or put food on the table. By the time you are approved for a regular bank loan, you could be in real trouble.
With short term personal loans, many of these problems are eliminated. Sure there are some requirements. You have to have a steady income of at least $800 a month. You have to have a bank account, as well as a permanent address. You will have to provide the lender with your bank account information, because unless arranged otherwise, when the loan comes due, funds are taken directly from your account. If you can provide this information, 99% of the time you will be approved. If you go into the payday loan office, you can get your money within an hour, they do have to check your information. If you are using an online company, you will probably see your money deposited within 48 hours.
There are pros and cons to quick personal loans. On the plus side you are approved in a short amount of time. You don’t have to jump through all the hoops like you do with a regular lending institution. You can use the money for anything you need it for. For people who have bad credit and want to start rebuilding their credit rating, this is a good way to do so. On the other hand, there are drawbacks as well. You have to pay this money back in a relatively short period of time. Because you are providing the lender with your bank account information, when the loan becomes due they will take it out of your account, whether you have the money in it or not. This means that if you don’t have the money, your account is going to be overdrawn, you will have to pay penalties not just for your bank, but also for the loan company. If you default on your loan, you will have an extremely hard time getting another one.
Let’s talk about the fees associated with these short term lenders. While the interest rate vary from company to company, they can be high, as much as 35%, depending on the lender. Then you have to consider their processing fees as well. They can charge up to twenty-five percent of the amount of the loan. These fees can add up quickly. The best thing you should do if you want one of these loans is to shop around for the lowest interest rates and fees. It is also important to understand that you should start small, so that you will be able to pay the loan back, and on time.
If you are looking for a short term personal loan, then personal loan Singapore is a licensed moneylender. They are online, and offer a number of different short term loan companies under one roof. This way you just go to one site, instead of trying to search the internet for an inexpensive, qualified lender on your own. While this site isn’t an actual lender, they do provide you with a number of lenders to choose from.