Payday loans can be defined as short term loans that are essentially based on the borrower’s personal check that are held on electronic access to the bank account of the borrower or for future deposit. Borrowers are required to write a personal check for the amount they borrowed in addition to receive cash and finance charge. In some instances, borrowers tend to sign over the electronic access to the bank accounts they own so as to receive and consequently repay the loan. Lenders withhold the checks until the following payday when the principal loan in addition to the finance charge are compulsory paid in a single lump sum. In order to pay the loan, borrowers are allowed to redeem the check so as to pay the loan using cash, permit the check to be deposited at a bank or simply pay the finance charge to forward the loan for the next pay period. It is a common form of borrowing in Singapore.
Consumers require an open account that has a standing that is relatively good, identification and a reliable/steady source of income so as to qualify for the loan. Lenders often fail to conduct a comprehensive credit check or even make inquiries on whether a borrower can actually afford to repay it.
Payday loans have a number of advantages for borrowers in Singapore and all over the globe, the main ones include the following:
Fast approval and simple process
A major advantage of payday loans is that the whole process is quite simple and very quick. This is unlike the traditional loans we are accustomed to as the paperwork involved is less and the process is painless. All one has to do is to access an office, inform the lender the quantity required, submit the necessary documents and walk away with your cash in hand.
Privacy is secured
A majority of lenders dealing with payday loans will normally grant the requests of clients without further enquiries. The borrower will only be required to prove their ability to repay the loan and their employment status. Borrowers do not have to explain what they need the money for.
No credit checks
This is arguably the best part in the payday loan application. The applicant does not have to suffer embarrassment over their previous credit check performance. All that is required is the preparation of bank statements, pay stubs as well as a post-dated check. This is beats conventional loans that involved many hours or even days of paperwork and credit checks.
It takes as little as fifteen to twenty minutes to receive funds following a successful payday loan application. Successful application refers to gathering and submitting the required documents in good time. This reason makes the loan ideal for emergency cases.
No collateral required
Payday loans are unlike secured loans that needed collateral for people who have bad credit. The post-dated check is the only guarantee required in the application process. This makes the loan suitable as the applicant’s property will not risk repossession.
If you are planning to go for payday loan Singapore, you are now knowledgeable on the facts. It is perfectly fine to borrow money from a licensed money lender and what better way than taking a payday loan.