It is without a doubt that short term loans can be tempting when in need of urgent financial assistance. After all, you only apply for the loan, get the funds you need and pay them back in a short amount of time. No wonder these loans are a lifesaver when you are trying to scrounge together emergency funds for car repairs or medicals bills without relying on bank loans.
But before you apply for a short term loan Singapore, it pays off to understand what they entail in the first place. And that’s precisely what this simple guide will help you uncover today. Keep reading to find out more!
What Are Short-Term Loans?
Before going any further, it is in your best interest to understand what goes into short-term loans first. Well, this type of loan is given with little to no collateral and is to be repaid in a year or less, sometimes weeks or months. Most lenders will however require you to share proof of employment with a certain monthly salary, a bank account and a driver’s licenses or another form of ID proof.
Since there is no collateral when counting on a business term loan Singapore and the credit requirements are low, they tend to charge a higher interest rate. Furthermore, you may have to make do with other fees and penalties.
How do they Work?
You can apply and receive a short equity term loan Singapore quickly, and there are many providers to choose from. All you have to do is submit your application and proof of employment or other credit information. The lending company will then review it and give you an offer of the terms of loan.
This includes the amount, interest rates, fees and repayment schedules. If you are in agreement with the term loan Singapore details, you sign the contract and get your money, in as little as 24 hours. That way, you can meet your financial emergency without the hassle.
The Bottom Line
Whether you are in dire need of a short or long term loan Singapore, you need to do your homework.After all, there is no way you can sign something you know nothing about. Hopefully, this simple guide will come in handy the next time you want to apply for a short term loan in Singapore and meet your emergency costs.
James Gunny came across Bitcoin in early 2013 and was hooked on ever since. After years of being an active member in the bitcoin community, he now aims to help promote cryptocurrency technology to the masses through his position of Senior Managing Editor at Onlinemagazinenews.com.
