6 Things To Know About Getting A Fast Loan In Singapore

Looking for a fast loan in Singapore but not sure where to start? You’re not alone! Although the number of Singaporeans opting for fast loans has increased these days, especially in the aftermath of a pandemic, many remain skeptical about the validity of these quick financial solutions.

But we are here to share with you all the important points you need to be aware of before applying for a fast loan in Singapore, and yes, it’s legal! So if you’re pressed for cash, here are 6 things you should know before taking a fast personal loan.

1. Interest rates for a fast loan aren’t always high

We’re sure you’ve heard financial horror stories of how interest rates crippled one’s finances or ruined relationships. It’s fair, given there is no such a thing as “free money”, so there must be a catch, right?

Well, not exactly.

A high interest rate is not the standard of a fast loan in Singapore. The amount of interest you pay is tied to your credit score, income status, and general repayment capacity.

This means that private lender interest rates aren’t pre-determined but rather calculated based on the information you provide and the type of loan you need. In addition, Singapore’s Ministry of Law dictates the interest rates legal money lenders in Singapore can charge — which cannot exceed 4% per month.

2. Pay attention to other fees involved

When applying for a fast loan in Singapore, interest rates are not the only fees you need to pay. Besides interest rates, the aggregate cost of a fast loan includes other fees, such as processing fees, late repayment fees, etc.

So while you are considering to take out a fast loan, do your due diligence and figure out what it will cost you every month, and if the overall costs outweigh the short-term benefits.

3. Watch out for scammers

Money lending can be helpful when you need it, but it is also a cesspool. Hence, take extra caution when looking to borrow money in Singapore, the money lender you choose to engage with should be under Ministry of Law’s list of licensed money lenders.

Remember when we mentioned how there is no “free money”? When a moneylender promises something that seems too good to be true, it is most likely a loan scam. Some examples of “too good” scenarios:

• Promising a hefty amount of cash without needing to check your credit history
• Asking you to make an upfront payment to facilitate loan approval
• No apparent website or proof of physical address
• Using urgent messages such as “offer expires today”

As a rule of thumb, any trusted lenders should be registered under the Ministry of Law. While fast loans are relatively easy to obtain, do still conduct your own research and take some time to consider your options before proceeding.

4. Fast loans are accessible to foreigners in Singapore

It’s not easy making a living in an expensive city and it is even more challenging for foreigners who are trying to survive, let alone thrive locally. If you are a foreigner looking to apply for a fast loan in Singapore, here’s the good news.

Licensed moneylenders offer quick cash options for non-locals, including expatriates, foreign students, and legal immigrants. Here are the eligibility criteria to apply:

• Over 18 years
• Employed full-time with a valid Singapore work pass, including eligible foreign students
• Residing in Singapore
• Having an income

5. A salaried job is not required

Contrary to popular belief, you don’t have to be on payroll for you to access a fast loan in Singapore. Unlike banks, licensed moneylenders have a flexible metric for assessing those who meet set requirements.

As much as a stable income is a key determinant of how fast your application will be approved, it doesn’t have to be a permanent staff position. Freelancers, entrepreneurs, and retirees are still part of the fast loan equation.

6. You can still get a fast loan with bad credit

Even if you possess a bad credit report, you can still obtain a fast loan in Singapore. This is one of the key advantages of borrowing from licensed moneylenders instead of banks. In a sense, it is more flexible and you have lower chances of loan rejection. That being said, it is still recommended to research on the moneylending company you intend to borrow from before applying.

At Galaxy Credit, our loan officers are dedicated to listening and understanding your situation before guiding you to the best personal loan option for your financial needs. Talk to us about applying for a fast loan in Singapore!