Whether you want to renovate your home, pay off college fees, buy a new appliance or have your car repaired, a personal loan comes in handy.
As the need for cash loans increases, people also look for various options on where they can get the fastest and most convenient loans nearby. Where should you get your loan? How will you know which loan fits your needs?
Cash Mart Lenders
Cash mart licensed money lenders to offer personal loans with the most flexible terms. This means you can even choose between weekly, bi-weekly, and monthly payment schemes. Choose the term you can easily meet. If your salary is once a month, then you can choose the term that lets you pay every month.
Additionally, licensed lenders have websites that you can visit to use their loan calculator for free. Using the loan calculator will not put you in any obligation. You can use without a need to sign up. This way you can easily see how much you can borrow, the interest charge, and the amount you have to pay depending on your chosen payment term. There is also some calculator that can show the possible due dates. This will help you see if you can handle the loan repayments with ease.
Licensed lenders are strictly regulated. Each loan must undergo due process. But no legal lender will ask for a prompt payment before the loan is approved. Furthermore, licensed money lenders must ensure that the borrower understands the loan terms and repayment scheme before signing the contract.
Personal loans from money lenders are unsecured too. You do not need any collateral to get approved through some of them may still require a co-borrower. Since it has a lesser requirement than banks, the loan process is faster. Whether you are approved or declines, you will immediately know.
If you pay diligently, your good payment habit will be reported to the credit bureau to help you build a positive credit score. This will help you get better loan deals in the future.
Pawnshops Singapore are one of the oldest establishments that lets you borrow instant cash within minutes. All you need is your pledge or collateral and the proper documents that prove that you own the item. Add to that you need to have a valuable item such as precious jewelry, expensive gadgets in good quality and watches.
Nowadays, a lot of pawnshops also accepts branded bags such as Birkin, Louis Vuitton, Chanel, and Dior. That’s why people also considered these bags as assets and not just something to flaunt.
Once the collateral is accepted, you can immediately get your cash. You need to pay the loan as agreed or you will be risking to lose your value. In other places, pawnshops auction the unclaimed pawned items. In pawnshops in Singapore, they are no longer allowed to auction the items. It is the pawnshop owner’s discretion on how the item will be used or disposed of.
A few years ago, when people think of large cash loans we would think of banks. Why not? They always have cash in their disposal. Unfortunately, banks are risk-averse. They will lessen the risk of defaulted accounts as much as possible. That’s why they require a long list of documents and even collateral. This is too troublesome if you have an emergency need. Add to that, banks usually do not tell the borrower of the loan is declined.
It is a common connotation that banks only lend to people who do not actually need the loan and snobs those who are really in need.
One way people get the fastest loans from banks is through the credit card cash advance. You can actually use your credit card to withdraw cash from an ATM. It’s too fast and very expensive. It starts incurring interest rates from the moment you withdraw the cash. The daily interest will roll over until you settle the loan. You have to pay as soon as possible to avoid it from snowballing into a huge uncontrolled debt.
Family and friends
You can also borrow cash from your family and friends. There will be no need for requiring documents, collateral, or co-borrower. All you need is a good relationship with the lender. If you are lucky, you can even borrow cash without having to pay any interest. But there will still be a risk.
You are risking your positive relationship should you fail to pay your borrowed cash as agreed. Imagine having to see your lender in parties and reunions. It will be awkward to greet the person knowing that you were unable to pay the loan.
If you are even luckier, your financial problem will be kept confidential by your lender. However, there are some who would tell people about your unpaid loan to your other friends and relatives.