While one way to go about it is to prepare an emergency fund, you can also keep yourself prepared for the worst by knowing your loan options beforehand. The best of those options is an urgent cash loan.
In this article, we’ll talk about the idea behind urgent cash loans and how you can qualify for an urgent cash loan in Singapore, as well as their pros and cons.
What is an urgent cash loan?
An urgent cash loan. Most often than not, you’ll find that licensed money lenders approve and disburse loans much quicker than traditional banks and financial institutions.
Are you eligible for urgent cash loans?
Urgent cash loans are very popular precisely because of the accelerated approval process. However, not everyone can qualify for one. One reason is that quick processing depends on the health of your financial record.
Applicants graded AA or BB (credit score of 1843 and above) ordinarily have never defaulted on a loan, have rarely or never made late payments, and are not involved in any legal financial proceedings. They are most likely to receive an urgent cash loan very quickly.
Pros of an urgent cash loan
There is always a huge demand for an urgent cash loan in Singapore. Here are some of the key reasons for its popularity.
Fast process
No one enjoys waiting. Urgent cash loans are typically accompanied by fast approval processes, efficient identity verification and credit assessments, along with speedy loan disbursement.
Immediate relief
Most people who apply for an instant cash loan need the money desperately. It could be a medical emergency, a legal issue such as reclaiming an impounded vehicle, or maybe even a product that you need that is on discount for a limited time. In each of these scenarios, waiting too long can have unfortunate consequences.
No collateral required
Not all money lenders in Singapore who offer urgent cash loans attach tough conditions to the loan contract. For example, 96bm Credit’s urgent cash loans are all unsecured loans. So long as our loan executives approve the loan, you do not have to leave anything you own with us (i.e. no collateral required).
Cons of an urgent cash loan
Quick loans are very convenient when you need cash in a hurry but there can be downsides as well. Read on to find out more.
Higher interest and/or administrative fee
When a licensed money lender approves an urgent cash loan in Singapore, they have to dispense the funds at very short notice. The loan executives have to complete the formal credit assessment process and paperwork within a very compressed timeframe.
One way that they account for this is by imposing a higher administrative fee. This may be a standalone cost or incorporated into the terms as part of the higher interest on the loan.
Unhealthy financial habits may form
There is no doubt that instant cash is very convenient. Unfortunately, that convenience can become addictive. Some borrowers put themselves in precarious financial circumstances, content in the knowledge that an urgent cash loan will always be there to give them temporary relief.
In the long run, though, this lax attitude leads to accumulated debt that can be very challenging to pay off.
How to get an urgent cash loan
So, you need cash urgently. Here are 3 ways to improve your chances of loan approval while ensuring a smooth application process.
Employment – casual or formal
One of the best indicators of a borrower’s ability to repay a loan is their employment history. A steady income gives them the means to support their lifestyle as well as meet their financial obligations.
This is great news for someone who has always been employed. However, applicants who do not have a formal job can improve their chances of approval by consistently engaging in freelance work and earning other casual income.
Documentation
Before you apply at our office, make sure you have all the necessary documents. This includes your NRIC or FIN card and/or passport. You will also need income-related paperwork such as payslips for at least the past 3 months. Know your Singpass password as you may need to log in to show related transactions.
Credit score
Maintain a good credit score even when you do not need to apply for a loan. Some easy steps include: (i) always paying your debts on time, (ii) managing a range of credit lines, and (iii) maintaining a healthy credit utilisation rate.
Bottom line
Getting an urgent cash loan to tide over an emergency can be achieved in no time if you do your homework and prepare all the necessary documents. You can apply for a loan on our website anywhere, anytime. Our loan officers will get in touch with you.
Meanwhile, you can also reach out to us or visit 96bm Credit’s office during our operating hours — you could very well get the money you need in your hands within 30 minutes.
About the Author
Hello! I’m Nikki and I nitpick through all the boring financial data and jargon so you don’t have to!
