Life’s unpredictability includes all kinds of unforeseen challenges. One of these challenges is sudden and unexpected financial shortcomings. No matter what the cause may be, they’re unavoidable obstacles that come swiftly, leaving no room for you to prepare in advance.
Emergencies come in many forms, but the most common ones are medical and technical. The former usually relates to abrupt illnesses or accidents, while the latter concerns one’s property, such as car troubles or urgent home renovations. These emergencies typically require you to cough up a huge lump sum of money – money that you may not have sitting idly in your bank account.
How short-term personal loans can help
When it comes to swift financial solutions, a loan is almost always the first thought that pops up in your head. While adding more on top of your current financial strain may sound like a bad move, short-term personal loans can be a lifesaver in unexpected situations, getting you out of a tight spot without compromising your finances further.
In fact, there are many other reasons to get personal loans — such as vehicle financing, large purchases or even to build your credit score.
With a small personal loan to aid you, you can get a hold of the much-needed money to pay off the expenses brought on by emergencies. Moreover, the strain of these unavoidable expenses won’t take a massive toll on your financial balance, as it will be spread out over smaller, more manageable payments.
An ideal choice for unexpected expenses and emergencies
Short-term personal loans are ideal if you are looking for quick cash to fix sudden financial shortages without making a dent in your savings account. Be it for individual or personal business needs, there will always be instances when readily-available funds are needed to tide over cash crises. In such scenarios, short-term personal loans may just be what you need.
What makes these loans great is that they typically have short repayment periods, possess no restrictions on what they can be spent on, and are available to persons of all income levels.
And when you opt for unsecured personal loans, the most common type of personal loan, providing collateral won’t be an additional concern.
Where to apply for short-term personal loans?
In Singapore, two of the most common sources for short-term personal loans are banks and legal money lenders.
Banks offer a range of short-term personal loans, including personal lines of credit, credit card loans, and personal instalment loans. They typically offer lower interest rates and longer repayment terms than licensed moneylenders. However, they also have stricter eligibility requirements and a longer approval process. If you have a good credit score and a stable salary that meets the minimum income requirements, a bank loan may be a suitable option for you.
Another option to consider for short-term personal loans in Singapore is licensed moneylenders. Ensure that your chosen lender is under the list of approved lenders by the Registry of Moneylenders, only these companies that appear in this list are authorised approved by the government to provide loans to individuals. They offer short-term personal loans with flexible repayment options, quick approval times, and a straightforward application process. Licensed moneylenders usually offer loans with higher interest rates than banks, but they can be a suitable option if you require cash quickly or don’t qualify for a bank loan.
When looking for a short-term personal loan in Singapore, it’s essential to conduct thorough research, vet through the best money lender reviews online and choose a reputable lender. Look for banks and licensed moneylenders that are licensed, have transparent application processes, and offer competitive private money lending rates that suit your needs. Beware of lenders that require upfront fees or make promises that sound too good to be true.
Navigating short-term personal loans: what you need to know
Before taking out a short-term personal loan, it’s important to consider a few key factors to ensure that it’s the right decision for your financial situation. Here are some things to note before taking short-term personal loans:
1. Understand the interest rates
Be sure to read the terms and conditions carefully, and understand the interest rate you will be charged before taking out the loan. If you are unable to make the payments on time, the interest charges will quickly add up and make the loan much more expensive in the long run.
2. Determine the total cost
Beyond the interest rate, be sure to understand the total cost of the loan, including any fees or penalties for late payments or early repayment. Take the time to calculate the total amount you will need to repay and ensure that it fits within your personal budget.
3. Have a repayment plan
Before taking out a short-term personal loan, have a clear financial plan for how you will repay it. Be sure to factor the repayments into your budget and ensure that you will be able to make the payments on time.
Evaluating your financial situation
One cannot deny that personal loans are excellent options that can quickly get one out of a bind. Despite all its benefits, you should consider several factors before applying for a loan, such as the loan requirements and your ability to pay it off.
Taking the time to assess these factors will not only help you make a more informed decision but also ensure that you do not put yourself in a worse financial situation. Carefully consider your financial circumstances and evaluate whether it is the right choice for you.
Looking for short-term personal loans from a licensed moneylender?
Get the financial support you need with Goldstar Credit – a reputable licensed moneylender with branches in Toa Payoh and Hougang. With our fast and easy application process, you can get approved for a short-term personal loan in no time. Apply now.
About the Author
Instituted since 2009, Goldstar Credit is a proficient licensed lender through and through. We pride ourselves on sharing our extensive personal finance expertise and knowledge with anyone and everyone who is keen on learning more about them.
