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What You Need to Know About Getting a Loan in Singapore

It goes without saying that life has its ups and down, especially in regards to money and finances. Although some of us are lucky enough to have plenty of funds available when we need them most, most of us aren’t quite so lucky. Of course, we all try to save toward the future or in case of a rainy day, but far too often life just doesn’t work out as perfectly as we’d like. That’s why it’s so important to have a back-up plan in place in case of emergency.

Loans can definitely provide you with the security and additional help you need. However, it’s important to make sure you completely understand all of the choices available to you before you decide which loan option represents the best solution for you. Let’s take a closer look at the different types of Singapore loans available to today’s modern consumer, examine the processes that go along with qualifying for each one, and determine what the best course of action for you might be.

How to Go About Getting a Loan in Singapore

Before you decide once and for all that a loan of one type or another is the right solution for you, it’s important to make sure you really understand the ins and outs of how to get a loan in Singapore. The process will vary according to the kind of loan you’re applying for. However, all will require the filling out of an application, the making of various inquiries, and possibly also a credit check depending on the loan type and amount being borrowed.

Applying for a Personal Loan

When you apply for a personal loan, you’ll receive the money you need relatively quickly – usually within 24-48 hours depending on the policy of the lender. However, you should be prepared to pay the loan back relatively quickly as well – within a month or possibly two. You’ll need to fill out a thorough application and submit to a credit check. If the loan amount you’re requesting is large, you may need to put up some sort of collateral.

Applying for a Business Loan

Much harder to qualify for are business loans, as there’s much more at stake. As touched on above, you should be prepared to explain how and where you’ll apply the funding you’re asking for in the building of your new business. The more details you can give, the better your chances of being approved. If you’re asking for funds to upgrade or remodel a business that already exists, you will need to share information and documentation on that business and prove that it represents a good investment.

Applying for a Payday Loan

Payday loans are by far the simplest to apply and qualify for. Many agencies simply require that you fill out an application and be able to prove that you’re gainfully employed. However, if you’re applying for the loan online, you may also need a checking account in order to receive the funds. This is also one of the fastest ways to obtain emergency funds, as some agencies can get you the money within mere hours of requesting it.

Regardless of the type of loan you would like to be considered for, it’s always a good idea to have all your ducks in a row in regards to your finances. Let’s take a closer look at how you can make sure you’re prepared in the event you ever do need to apply for a loan in order to increase your chances of qualifying.

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Increasing Your Chances of Qualifying

At the end of the day, whether or not a given lender approves you for a loan has everything to do with how safe a risk you are. The more of the following characteristics you have to your advantage, the better your chances of having your application accepted and the more likely you are to be able to count on a loan as a source of emergency funds should you need them.

Reliable Income

Whether you’re applying for a simple payday loan or something more complicated, such as a business loan or even a home loan, it’s imperative that you have a steady source of income. It’s also important to be able to prove that you have one. Make sure you save pay stubs from your job, as well as recent bank statements. If you’re in business for yourself or work as a freelancer, be sure to keep detailed documentation in regards to all of your clients. The more proof you can show that you do well for yourself when it comes to earning, the better.

Clean Credit

One of the most important factors that will determine whether or not you’re approved for a loan is going to be your credit history. After all, lenders are going to assume that the best predictor of your future behavior in regards to financial obligations is going to be your past behavior. If you’re defaulted on a lot of other financial commitments, then they have no choice but to assume that you might do so with new commitments you make, too.

This is exactly why it’s important to know what’s in your credit history and keep it as clean as possible. Order a copy of yours and go over it with a fine-toothed comb. Go through the process of disputing incorrect items that may be negatively affecting your credit. Pay off as many legitimate ones as you can. Everything you can do to improve your credit report will increase your chances of being approved for future loans, so it’s important to stay on top of it to the best of your ability.

Co-Signers

In the event you’re unable to qualify for a loan in your own right, having someone in your corner who is willing to vouch for you by co-signing can be a big help. However, it’s important to make sure to honor your financial commitment if you go this route, as the lender you choose can and will go after the co-signer in order to collect what’s owed to them.

Professionalism also goes a long way toward making a good impression with a lender. Always put your best foot forward and approach lending agencies with respect.