Sunday, October 21, 2012

Pros And Cons Of Singapore Payday Loan

By Roseanne Blossoms

Borrowing cash from our family and friends can be quite humiliating but there are instances when we don't have much choice because we need money immediately and payday is still weeks away. Although many people spend their hard earned cash carefully, there are emergencies that can upset their careful spending. That's why people loan from financial institutions and lending firms. But the downside is that it normally takes days up to weeks before people can be approved for a loan, which renders the entire emergency loaning thing useless. For this type of situation, there's payday loan that people in Singapore can turn to.

For those who wish to apply for loan in Singapore fast, payday loan is the solution. These short-term loans are almost always granted in just a few hours if the applicant has shown few essential papers and if the same have been confirmed. People who request for payday loan are expected to pay it back in full including interest in 30 days or less, which is on the following payday of the borrower.

But this is not for everyone. Payday loan is only allowed for employed individuals who need emergency cash and who are able to pay that amount in full plus interest on their pay date. That's why the initial common condition asked of borrowers is to be a full-time worker so they can have the cash to pay them.

The usual files that Singapore lending firms require for payday loan applications include the borrower's National Registration Identity Card (NRIC) and either their latest computerised monthly payslip or their Central Providence Fund account (CPF) for 15 months. Self-employed individuals may show their NRIC and their income tax statement of two years.

The best thing about obtaining payday loans is that borrowers don't have to await a long time before they get to know if they are approved. It takes an average of only three hours for approval. This short-term loan also nearly always has 100 per cent approval rating. However, the rate of interest of payday loans is generally higher than other traditional loans.

Some countries want to ensure that the loan applicant would be able to pay the amount and interest of their loan on their salary date so they automatically subtract the amount from the borrower's bank account on the arranged payment date. But Singapore normally has follows a different practice. Borrowers in the country are required to pay the legal money lender Singapore firm the entire amount in cash on or before the due date.

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