Features of Payday loan in Singapore
The prospects of mitigating the disaster seem to be extremely bleak and completely dark. At these times, payday loan in Singapore will be able to help. The monthly salaries are the securities that will convince the lenders to give out the loans. This amount is quite crucial especially when the person in urgent requirement of funds, either for monthly bill payment or for an emergency that seems to have stripped off all the careful planning apart.
Need for payday loans
Payday is the best things to use when the funds suddenly fall short of the plans. It could be so that some unprecedented and unexpected expense could have turned the tables in such a way that shortage has hit with the force of a plank on the side of the head. This is a common occurrence either when there is a large family or when there is a single young person involved. Both of these classes of borrowers are famous for having no cash at the end of the month. However, there are some features which should be carefully understood and analysed, before going for such an option.
Significant Characteristics
Talking about the characteristics , it should be kept in mind that they charge high rates of interest which are also only for very short periods of time, more specifically, just to tide over, until the next payday. As the name suggests, the loans are instated with the intention to tide people over until they receive their next month’s paycheck which will allow them to meet their urgent needs that cannot be moved aside until then. The loans are quite easy to process as there is no issue of getting any fastidious documentation over with or for any security.
Payday Loan Procedure
The process of getting a loan involves identifying the correct and MAS approved providers . This will lead to a transparent and regular process of loan processing with pre-approved interest rates and period. With the different people applying for the loans and a high chance of default, it is no surprise that the institution will charge high rates. The lack of security is also another factor which contributes to this. The borrower writes a postdated check for the repayable amount, which is a combination of principal, interest and handling charges.
Key points to note
The borrower gets the cheque cleared from the borrowers’ account the day after the payday. It should be noted that failure to repay could adversely affect the ratings of the borrower like any other loan. The documents for a citizen are the NRIC, pay slip, CPF contribution proof of past 15 months and IT statement and requisite address and ID proofs. It is always better to avoid unregulated lenders as they could be quite unscrupulous.
