When you face desperate financial situations, traditional lending institutions like banks may not approve your loan application. In such cases, you should consider taking a payday loan offered by legal money lenders Singapore. For those that have never taken payday before, here is some basic information about it.

What Is Payday Loan?

A payday loan is a short term unsecured loan where you do not have to provide security or a guarantor. The payday loan can be compared to a cash advance taken by you that you need to return on your next payday. As there is less paperwork involved, the lender can quickly process the loan application. For payday loans, the cash is in your hands within a few hours after you submitted your loan application.

When offering payday loans, the licensed moneylender may not give much importance to your credit score. Even if you have bad credit score, the money lender is more likely to approve your payday loan than a bank.

How to Apply for a Payday Loan?

The first thing you need to do is to find an authorised money lender. Before applying for a loan, make sure the money lender is legitimate by checking the money lender’s registration number or license. If the money lender is licensed, the registration number of the money lender should exist in the list of moneylenders on the Registry of Moneylenders website. If the money lender is legitimate, you are more likely to have a good experience when applying for a payday loan. The money lender will be required to follow standard rules and procedure when granting the loan. If you fulfil the eligibility conditions, you will be more likely to walk out of money lender’s office with cash in hand.

What Is the Eligibility Criteria for Payday Loan?

Although the loan eligibility may differ according to the lender, the loan applicant should usually meet the following eligibility criteria

• Must be in the age group of 21-60 years.
• Should be either a permanent resident, citizen of Singapore, or hold a valid work permit or employment pass
• Should be able to provide valid employment proof

How to Get Best Interest Rates for a Payday Loan?

If you meet the eligibility criteria for taking a payday loan, ask for quotes from several legitimate money lenders in Singapore. The interest rates offered, and the upper limit of loan amount differs with every money lender. Hence, the right way to get best interest rates is collecting quotes from several lenders and comparing the loan amount, interest rates and conditions of the loan repayment.

Other Important Things

Before submitting the signed loan application to a licensed money lender, read the payment terms conditions carefully and check the interest rate offered. Check for any clauses or hidden fees. It is necessary the draft of loan document is written in the language you can read and understand. If you are concerned about any clause in the loan document, contact any lawyer to get the clarification about the term. Sign the payday loan document only if you are satisfied with the loan amount, interest rate, and repayment conditions.