“I want cash to address a medical emergency, car repair, or renovation, “Is a short term loan in Singapore a good option?” As the name suggests, short-term loans are types of credit that are advanced to a borrower and repaid in a period of fewer than 12 months. To help you make the right decision on whether to go for a short-term loan, here is a closer look at the major benefits of the benefits associated with using short-term loans.
Benefits of Using Short Term Loans
The main benefit of using short term loans is that the risk you take is pretty small. Therefore, most lenders are likely to approve the loan application. Other benefits of short-term loans include:
- Clearing the short loan is pretty easy: Because short term loans mainly involve small amounts, many people do not find it challenging to repay them. However, it is prudent to ensure you plan for repayment well, especially if you also have additional debts.
- Short-term loans are insecure: Unlike other loans such as mortgages or car loans in Singapore, temporary loans do not require collateral. This means that your assets will not be at risk in case you are unable to repay the loan.
- The loans form an excellent way to improve your credit score: If you have a poor credit score, most financial institutions will view you as a risky party and charge high-interest rates when approving credit. To improve the score, you need to build a positive credit history, and short-term loan offers an excellent way to do that. Simply take short-loans, clear them on time, and your score will start improving with time. Do not also forget to pay other outstanding debts.
Types of Short-term Loans You Can Take in Singapore
Now that you know the major benefits that come with using short-term loans, what options do you have? The loans fall into several categories, including:
- Online Installment Loans
These loans get their name from the fact that the bulk of their processing is done online. Therefore, many people find them very effective when they are faced with emergencies that require borrowing funds urgently.
- Payday Loans
Like the online loans, payday loans are also processed pretty fast. Once the loan is approved, the money has to be repaid in full during the next payday. The only issue with Payday loans is that they tend to have very high interest rates.
- Line of Credit
This type of short-loan is like credit card in many respects but comes with a pre-agreed level of borrowing that you can use for purchases. If you feel that the amount is small, you can negotiate with the provider for an increase.
Apply for a Short Loan through Lendela
In Singapore, there are many lenders, from banks to online moneylenders, who might be willing to lend you short-term loans, but the process of application can be pretty challenging. For example, most banks subject borrowers to intensive scrutiny, but going online can be equally risky because of loan sharks. Instead of taking the risk, you should consider working with Lendela, a lender comparison site for helping borrowers to pick the best loans.
With Lendela, the process of applying and getting a loan approved is pretty simple and straightforward. First, you visit Lendela’s website to make a short application. Then, Lendela uses an advanced marching algorithm to pick lenders who are likely to approve the applications and forwards the applications to them.
Within a very short time, lenders send preapproved offers that you can pick. So, check them carefully to see the short term loan with better conditions and select it. Finally, Lendela books you an appointment for signing the loan. Once the cash is released into your account, make sure to repay as agreed because late payments attract heavy penalties in most cases.
