There are times when you can never tell difficult financial situations would come into your life. Although you may have your needs covered at this point, there may be a sudden and emergency expense that will require an immediate action. However, if you have an insufficient amount of money in your savings fund, the whole experience of finding fast cash to cover your bills payment you need to settle urgently may be a stressful one.
Some people assume that they can easily go to their family and friends for financial assistance. But the truth is that you cannot always count on this option. First, you may find it awkward and embaassing asking them to loan you some money. Second, they may not even have the amount you need available at the moment. Thus, you are stuck without any guarantee of receiving the funds you need at that particular moment. If this is the kind of situation you find yourself in, your stress level just adds up!
This is why it is practical to go straight to a more reliable source of emergency cash. A licensed moneylender in Singapore can provide you with the financial assistance you need without an extensive and elaborate process to deal with. As long as you have the required paperwork ready, which should not be difficult to prepare at all, you can begin the application process. The next thing you know, you already have in your hands the full amount you have loaned to cover for your immediate expenses.
Know Your Qualifications
For some people, they resort to trying their luck in banks with the hopes of qualifying for a loan. But then, it is not that easy as most people think when it comes to applying for a bank loan. In fact, this financial institution grant personal loans or credit cards to clients if they make at least $30,000 in a year. So, unless you earn a minimum of $2,500 per month, your chances of being approved of a loan is quite slim. There are several university graduates who make $3,000 monthly, which may be their starting salary. If this is the case, then they surely have an edge over those who are receiving a much lower income such as individuals who have a lower education or polytechnic graduates. Thus, if you are the latter, there is a need to search for an alternative source of emergency funds since it may only be a waste of time to go back and forth in banks considering your ineligibility for a loan.
While there are varied qualifications and standards that banks set for personal loan applicants, there are common areas they look into before granting an individual a loan. These are some of the common requirements and eligibility criteria that financial institutions take into account when an individual comes to them to apply for a loan.
In the case of a salaried employee, for instance, Citibank has these eligibility standards:
- A photocopy of your NRIC’s front and back page
- A copy of your CPF statement for the past 12 months or your most recent ITNA (Income Tax Notice of Assessment), as well as your latest and original copy of computerised payslip
For self-employed individuals, the requirements are a bit more tedious. They will need to present these documents to qualify:
- A photocopy of your NRIC’s front and back page
- Income Tax Notice of Assessment for the past 2 years and bank statements for the last 3 months
But then again, you have to be aware of the fact that self-employed individuals may undergo a tougher time with getting approved since the eligibility criteria becomes more strict. Nowadays, several people opt to go through the entrepreneurial route. This is why these individuals undergo greater difficulties in trying to obtain credit from banks. Startups and smaller businesses find themselves in such a tougher situation, so it is better to look for a more practical and dependable source of fast cash in another way.
If you are a self-employed individual with a pressing need for a short-term loan, what can you do to get the amount you require that will tide you over for a certain period? Since banks are stricter with their qualifications, choosing a different means of taking out a loan should be helpful in your case.
How a Licensed Moneylender Can Help
When things get tougher for you to acquire a loan, a viable option to consider is consulting a licensed moneylender in Singapore. In case you have some qualms and reservations about obtaining fast cash this way, you may want to look into the fact that your chances of being approved of a loan through this route is higher. If banks have already declined your application, then it is certainly more practical and time-saving to approach a licensed moneylender for financial assistance.
Keep in mind that although moneylenders are less strict with their eligibility criteria, they still have standards and policies set for borrowers. However, these are much less stringent and not quite as tedious as what you can expect from a typical bank’s loan qualifications. Such eligibility criteria are set in place to make sure that borrowers are capable of repaying their debts on time. In a way, this helps these individuals who may only end up going through a tougher time in making payments for their loan.
Moneylenders understand your immediate need for cash. When emergency expenses can no longer wait, then the amount required must be provided as fast as possible to avoid further stress to borrowers. This is the reason why there is no lengthy process involved in the application and approval of a loan. In just a few days, your documents have already been reviewed by a moneylender, and you should be able to expect a response in a matter of hours. As for the eligibility criteria that moneylenders have, these are a bit different from what banks usually require. As long as you can present your income statement and a proof of your employment, then you are good to go. However, you will have to present income tax returns, as well, particularly if you are an entrepreneur or someone who earns from commission. In case you make about $20,000 annually, you may still qualify for a loan. This is such a big difference from the usual $30,000 annual income criteria that banks set for borrowers.
Once you have submitted these documents, the moneylender will begin calculating and evaluating your qualifications for a loan. You can expect to receive a feedback regarding your application in a few days. In case additional paperwork will be required, just be sure to present what is needed for a more efficient and smoother loan application processing. The earlier you submit a complete set of documents, the faster you can receive the loaned amount.
Additional Tips to Receive a Faster Loan Approval
There are also a few other ways that you can try to make the processing of your loan application faster. If you have a guarantor, or you can present collateral, then the loan approval may go by quicker. You may also want to present your bank account statements to a lender if you only require a short-term loan or a small amount of money that you can use for an immediate expense without having to touch your savings. This is beneficial for those who are making money from interest in the bank and not eager to get some cash out, which could otherwise still be increasing in value over time.
But before you go ahead and apply for a loan, always remember that there are some factors to keep in mind. For the most part, the interest rate is not that low at all. If you fail to pay your debts on time, there are also penalties and fees to think about. So, think carefully and evaluate your need to make sure a personal loan is truly a necessity in your situation.