You can use a cash loan in Singapore to pay for emergency expenses as well as for big-ticket purchases. For this purpose, many people opt for personal loans. When you decide to take a cash loan in Singapore, you can choose between a licensed moneylender and financial institutions such as banks. Below, we will talk about how to find the best cash loan in Singapore.
Determine The Interest Rates Of Cash Loans In Singapore
When you compare the cash loans available in Singapore, you will notice the following interest rates. These interest rates will help you determine the best cash loan in Singapore.
- Effective Interest Rate
It is vital to state the EIR or Effective Interest Rate besides the advertised rate. It will take into account the miscellaneous and other different fees along with your repayment schedule details. So, in short, the EIR depicts the true rate of interest of a cash loan.
- 0 percent interest cash loans
Some banks offer 0 percent interest cash loans for a short-term period. However, these cash loans come with a high processing fee. It means that you will still have to pay the bank for your loan. The bank will thus collect the money up front instead of taking interest payments later.
- Advertised interest rate
It is the annual rate of interest that gets advertised. For instance, a personal loan offers an interest rate of 3.88 percent per annum. But, it will only give you an idea but not the entire picture that includes both the admin and the processing fees.
What Can You Use A Cash Loan In Singapore For?
You can use a cash loan for two purposes. Most borrowers require cash loans for an emergency, or they take loans to repay their debts.
Once you figure how do you deal with licensed moneylender in Singapore, you can avail yourself of cash loans. Getting a cash loan will enable you to get your money deposited in the bank account. This makes cash loans different from other kinds of loans that include renovation loans and home loans. In the latter case, the borrowed money gets disbursed to the contractor or the seller of your home.
So, to have cash, you need to open one bank account with your cash loan provider. Within a short time, the lender will provide you with money in your account. You can transfer it later to your regular account in the bank as cash.
If you are in credit card debt, securing a cash loan will help solve your problems. After the cash gets disbursed into the account, you can use it to clear your credit card bills. But, you will have to commit to the repayment schedule of your cash loan, which can be monthly repayments over years. Keep a check on your credit card bills and, if possible, cancel your non-essential loan facilities and credit cards, so you do not need to over borrow.
How Can You Choose The Best Cash Loan In Singapore?
A cash loan can span years of repayment. Make sure to choose cash loans whose instalments you can pay monthly. If you do not pay your monthly instalments on time, you may have to pay additional fees.
Another thing you will have to keep in mind is to avoid long-term periods of repayment. It can result in you paying more interest on the borrowed amount. If possible, you can try to pay before the scheduled period with an early repayment fee.
If you are borrowing a cash loan from a bank or top licensed moneylender in Singapore, you need to watch for the following things.
- Monthly instalments
Before you take cash loans, see whether you will manage the monthly instalments of your loan. However, do not opt for a long loan unnecessarily to keep the cost of the monthly instalments low. It will mean that you will pay the bank more interest.
- Loan amount
The loan amount you select must depend on your ability to repay the loan.
- Term period
The longer the term period that you choose, the more you will end up spending on interest. Hence, try to keep a balance between the two and go for a short-term period.
- Disbursement speed
Banks usually have a long application process where they review your income and credit rating. If you require a cash loan urgently, you can get it from a licensed moneylender in Singapore who can disburse your cash loans on the same day.
Cash loans will help you have money readily available to meet all your financial needs. Moreover, you can choose the term period and pay your repayment early to steer clear of a bad credit rating.