Urgent Emergency Loan: Apply Easily Within Minutes!
Financial crises are part of our lives. Many Singaporeans face debilitating accidents, retrenchments, or evictions. The best solution is to have an emergency savings account, but that’s challenging if you’re living off a minimum salary.
In this situation, you can consider a personal loan. However, your bank’s approval process may be prolonged and intricate. Remember that your bank will assess your credit score too before granting this loan.
The right solution for financial emergencies that require quick cash is an urgent emergency loan.
Remember to choose your provider carefully and to analyse several loan packages. We’re here to help.
In this article, we’ll discuss the advantages and disadvantages of various financing solutions. We’ll talk you through the eligibility requirements and paperwork, and we’ll tell you how much money you can get.
Next, we’ll help you with alternative solutions if banks rebuff your application.
The result: you’ll opt for the most suitable loan package. Use it wisely to overcome all your financial difficulties. Keep reading!
What Is An Urgent Loan?
An urgent loan is a type of personal loan that you can get quickly. That’s because the principal amount you’re borrowing isn’t massive. Thus, your repayment plan will also be shorter.
Many credit providers customise their financing solutions to your budget and the amount you need. In the process, they cut through bureaucracy so that you won’t have to submit lots of files.
Your credit score is less important when applying for an urgent loan versus a typical personal loan. The reason is that you’re borrowing less money on a shorter tenure, which decreases the risk that banks undertake.
Warning: There are many types of personal loans. Some, such as education or renovation loans, can only be used for their stated purpose.
Here are some examples:
- A study loan doesn’t pay for your visits to the museum or unconventional studying materials.
- A renovation loan doesn’t allow you to change your furniture.
Conversely, you can use your urgent emergency loan for anything you want. And there are other benefits too:
- Your interest rates are lower than those of credit card advances and pawnshop loans.
- You can get more money than with a payday loan.
- Increasingly more licensed moneylenders transfer your cash within a business day.
- You can negotiate flexible repayment schemes.
What Are The Types Of Urgent Loans?
Before choosing the right solution for your needs, learn how to get quick cash through:
1. Personal Loans
Some banks crafted unique emergency loan packages for people in need of fast funds. These personal loans look like urgent loans because they have streamlined approval processes, and you can get your money faster.
However, emergency personal loans from banks aren’t as quick as urgent emergency loans from moneylenders.
These personal loans are a good option, though, if you need more money. Some emergencies like a divorce or unplanned pregnancy allow you to wait a couple of days until you complete bank formalities. The result is a more massive amount at a lower interest rate.
But there’s an essential downside:
Your credit score has to be high.
Besides, some banks may impose conditions regarding your minimum wage, age limits, and nationality.
2. Credit Card Advance Loans
If your car breaks down on your way to work or you don’t have enough money at the shops, you can pop your credit card into the closest ATM. That’s a credit card advance loan.
Its crucial benefit is that you can get the money almost anywhere in minutes.
Compared to an urgent emergency loan, these cash advance loans are:
- 100% paperwork-free
- Without a repayment deadline
Unfortunately, these advantages can become your biggest enemies if:
- You continuously use your credit card for non-essential things, such as hairstyles, outings, or jewellery.
- You’re not repaying at least your minimum balance. CBS warns Singaporeans that their credit card debt can increase in size rapidly because of accumulating debt.
That’s why financial specialists frown upon credit card loans unless there’s a genuine financial emergency.
Why Do You Need An Urgent Loan?
You may need an urgent loan because you want to solve financial challenges such as:
- Accumulated debt
- An impromptu trip
- Building a savings account
- Car troubles
- Educational needs
- Finding new rent
- Overdue bills
- Pets’ health issues
- Unforeseen death
- Urgent repairs or restorations in your home
So why is an urgent emergency loan better than other financial solutions?
- It’s quicker, compared to conventional personal loans. Some self-titled emergency loans take several business days for approval, whereas urgent emergency loans are usually approved in less than 60 minutes.
- It has affordable interest rates, compared to cash advance loans.
- It demands less paperwork than personal loans.
How Much Can I Get For An Urgent Emergency Loan? How Much Can I Borrow?
Before sending in your application, make sure your chosen provider can loan you as much as you need. Your loan provider should have a strong financial standing like Katong Credit Pte. Ltd.. Also, ensure your moneylender crafts a customised reimbursement schedule, with affordable instalments. Otherwise, you won’t be able to refund your debt.
Although some lenders offer more massive amounts, here’s what influences how much cash you can get with an urgent emergency loan:
The rule of thumb is that an urgent emergency loan can’t be more than 4-6 times your monthly wages. That’s because you need to repay the debt with interest within one year comfortably.
However, if your yearly wages are over $120,000, banks like DBS can fork out up to ten times your monthly income.
- Higher incomes represent a reduced risk of default. That’s why banks are willing to give more money to highly-paid Singaporeans.
- Some banks require a minimum income limit of $20,000-$30,000, so add all revenues when you submit for a loan, not just wages.
Banks lend more money to Singaporeans with high credit scores because your rating indicates financial diligence. Thus, banks consider you’re not a risky customer.
Here’s how Credit Bureau Singapore associates your probability of default to your rating:
|Credit score||Risk grade||Probability of default (Minimum)||Probability of default (Maximum)|
Is your credit score low? Here’s what you can do.
- Learn money management strategies to improve your rating, such as budgeting, separating essential from non-essential expenses, and paying your bills timely.
- Find a moneylender that relies on other risk indicators, such as employment status or psychometric analysis.
Who Can Apply For An Urgent Loan In Singapore?
Certain Singaporean banks impose age, income, and citizenship-related conditions:
- 21 to 60-65 years of age
- $20,000-$30,000/year minimum income
- Singaporean or PR status
Licensed moneylenders in Singapore won’t enforce these criteria, but they customise your principal amount according to your income:
- You can borrow below $3,000 if you’re earning less than $20,000/ year.
- You can borrow 4-6 times your monthly earnings for incomes over $20,000/ year.
How Do I Choose The Right Urgent Loan?
The best way to choose the right urgent loan is to ensure it fits your budget. Thus, you need to make a list of your income and expenses. Compare prices of various solutions to your current problem, and choose the best value-for-money plan. That way, you won’t borrow over your financial power.
Pro tip: Don’t send too many loan applications because this practice decreases your credit score.
Below are other factors to consider:
1. Maximum Sum
- Your licensed moneylender can loan you the needed sum.
- Their reimbursement scheme is split on affordable instalments that don’t restrict necessary expenses.
2. Reimbursement Plan
Long and short tenures have particular sets of advantages:
- Long-term tenures feature more flexibility, lower rates, and can improve your credit rating.
- Short-term tenures decrease your overall debt expenses and ensure you don’t owe any money faster.
3. Interest Rate
No financial institution can go over the 4% monthly interest imposed by the Ministry of Law in Singapore. However, rates vary within this limit from low to high.
Here’s an industry secret:
High-interest rates have certain benefits, depending on your needs:
- You can borrow more money at the same tenure.
- You can borrow the same amount of money but reduce your tenure.
Advice: The keyword here is “your needs.” Start from your budget and necessary expenses that cover your financial distress. Then, compare several moneylenders with an online calculator to get the best deal.
4. Additional Charges
Some emergency loans have processing fees. You see that particularly with banks in Singapore, as they demand sums of around $200 to speed up your loan inquiry.
Take all these fees into account before signing up for a loan.
5. Your Financial Partner
Ensure your lender has high reviews because that shows you’re dealing with an expert and caring moneylender. You’ll need a partner with those features in case of reimbursement difficulties.
What Are The Documents Required For An Urgent Emergency Loan Application?
Most banks and moneylenders in Singapore need paperwork to prove your ID, residence, and income. Examples of these files include:
- Your NRIC
- Utility bill with your name on it
However, foreign citizens may need additional documents, depending on your moneylender:
- Proof of earning at least $2,000-2,500/ month
- Work permit
Pro tip: Want cash faster? Choose a moneylender that lets you apply online with your SingPass.
What If My Loan Application Is Rejected From Banks?
Unfortunately, it’s not uncommon for Singapore banks to rebuff specific loan applications, especially if you have low credit score and income.
Should this happen to you, make sure to never borrow from loan sharks! Once you fall into their trap, it will be hard to get out.
These loan sharks use fraudulent and physically dangerous means to recover their loan.
Here’s what you can try instead:
- Ask one of your friends for a loan or to co-sign on a personal loan.
- Consider a secure personal loan. You can read more about them here.
- Take a pawnshop loan.
- Sell or rent things you don’t use anymore, such as your wedding costume or bike.
- Consider leasing one of your rooms.
- Apply for a part-time job.
- Consider any skills that can bring you extra money, such as tutoring, macramé, baking, or DIY projects.
- Seek financial assistance on a P2P lending platform.
- Reduce all non-vital expenses to save money.
- Consider online donations.
- Enrol in credit counselling.
After a bank rebuffed your loan inquiry, the best option is to seek professional assistance from a licensed moneylender.
If you need extra financial guidance, you can also receive free credit counselling from non-profit groups in Singapore.
Why Should You Apply From Licensed Moneylenders In Singapore?
Banks are not your only option.
You should apply for an urgent emergency loan from a licensed moneylender because:
- Their interest rates are convenient, compared to P2P platforms, credit cards, and pawnshops.
- You can keep just one job because expert moneylenders practice affordable installments.
- Urgent emergency loans are unsecured so that you won’t put your things up as collateral.
- You won’t need to rent your home.
- You won’t have to bear your family’s criticism or snooping around because you won’t borrow money from them.
Besides, licensed moneylenders:
- Transfer your money within a business day in most cases. Remember that licensed moneylenders are obligated to set up a meeting at their headquarters for due diligence.
- Licensed moneylenders follow laws imposed by MinLaw. You can find the list of vetted moneylenders here.
- Expert moneylenders know how to craft flexible reimbursement schedules according to your budget.
- The chances of application approval are higher.
- Your credit score is not a primary factor for loan approval.
- The application process is bureaucracy-free. The online application takes minutes, especially if you’re using your SingPass.
Remember that licensed moneylenders in Singapore offer different urgent emergency loan options. Choose a lender with whom you resonate. Expertise is crucial, but so is customer support.
Get a loan from someone who cares about more than numbers on a piece of paper. Find out more here, we promise no obligations.
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