When life comes up with unpredictable unprecedented situations, we often find ourselves in need of financial assistance. We tend to look for quick and effortless solutions to meet our financial urgencies. Thus, most of us often try to sell off our assets or burn out our savings to tackle the drastic times. However, one of the best ways to cater to emergency monetary events is to get an emergency loan. Many needy folks choose to go for an emergency loan in Singapore.
What do you mean by an emergency loan and how can you use it for your requirements? Is it safe to get an emergency loan? Let’s dig deeper into the critical aspects of an emergency loan!
What is the meaning of an emergency loan?
An emergency loan represents a form of personal borrowing that is fast approved and disbursed to the borrower to take care of pressing unforeseen expenses. They are generally available as unsecured loans that do not need you to provide a collateral for the mortgage. The instantaneous access to funds that one finds with this type of loan can prove quite useful in times of urgencies.
What are the pros of taking an emergency loan?
1. Allows an easy peasy application process
An emergency loan has a very simple application procedure as it is meant to solve the financial needs during a crisis situation. Hence, lenders do not involve extensive paperwork and compliance requirements in the emergency loan application process allowing you to cater to your monetary needs quickly.
2. Comes with minimal approval time and higher approval rates
A lot of loan alternatives entail a significant time for approval from the lending company. However, emergency loan schemes are designed in way to enable rapid approval of funds. The approval rates for emergency loans tend to be much more than other loan alternatives in Singapore as the amount usually involved is not very high.
3. Offers modifiable repayment options
Most borrowers want flexible repayment terms for their loans from the lenders. An emergency loan generally allow changeable payment obligations and one can also service the debt with monthly installments that shall not impact your overall income.
4. Helps to keep your hard earned savings intact
Almost all of us dig into our hard yearned saving pool to meet emergency situations which makes can make our future even more uncertain. With an emergency loan, you can lower the pressure on your savings and get an easy to repay loan option. It acts as a reliable substitute to keep a remarkable portion of your safe for future needs.
5. Negligible risk of attachment of personal property
An emergency loan from reputed lending institutions or licensed moneylenders mostly does not require the borrower to offer precious property or assets as collateral. Hence, you do not have to fret about the risk of losing your essential assets on any default in repayment. But, you should always timely adhere to the repayment schedule as it will affect your credit rating and overall credit worthiness in the long haul.
What are the popular types of emergency loans in Singapore?
The most common types of emergency loan schemes available with banks and licensed moneylenders in Singapore include:
Payday loans
Payday borrowings represent loans of small chunks of money with a higher interest rate than other loan options. However, they ensure quick fund disbursement and less paperwork. Due to the increased interest rates, it is best to repay the loan as fast as possible.
Personal loans
Borrowers can take personal loans that are repayable over a fixed tenure through predetermined installments. Secured personal loan may require you to offer a collateral. The interest rates of personal loans are usually contingent on the credit score of the borrower and can be quite low if you have a decent rating.
Credit card loans
Credit card loans or advances denote sums of money within the available credit card threshold that one can withdraw as an advance. Such credit card loans normally attract higher interest charges along with some extra fees.
Title loans
Title loans connote a form of secured borrowing where the lender gains title to your asset like your car to lend money. They often come with high interest rates and on inability to repay you can risk losing your asset.
How can you utilize the funds from an emergency loan?
A borrower can use an emergency loans for different priority requirements such as those enlisted below:
– Funeral costs
– Unexpected travel expenses
– Urgent medical spending
– Unforeseen vehicle issues
– Emergency travel needs
– Critical house renovations
Get the best and most trustworthy emergency loan choices in Singapore with Tradition Credit!
Tradition credit is known to offer some premier loan schemes for different needs of individuals and businesses in Singapore. As a licensed moneylender, we offer reliable and quality-driven services and have an experienced team of professionals to address your requirements. Our loan application process is fast, simple, and safe. We charge no hidden fees and there nil penalties for early settlement. Explore our loan solutions now!