Most people think that one must only take a loan in case of huge personal or business financial need. But what if you’re in quick need of cash? Or need money to help you get through the end of the month? Or cover some unexpected medical expenses? It is where a short term personal loan can come to your rescue.
Short-term personal loans are becoming increasingly popular in Singapore. It is a great solution for people who find themselves in need of cash but don’t know how to get it.
In this blog, we dive deep into the topic of short-term personal loans in Singapore and their uses in your everyday life.
A Quick Guide on Short Term Personal Loan & Its Uses
What is a Short Term Personal Loan?
Short-term personal loans, as their name suggests, are the type of loans that come with short tenures. They also have a lower range of loan amounts than others – between $100 and $35,000. The borrower needs to pay back the loan usually within a year, with a fixed monthly instalment.
With these loans, you can attend to your financial needs without being in debt for too long. Since they are unsecured loans, you don’t need to worry about providing collateral.
Short-term loans do not take long to get approved. Since they are designed for quick and emergency cash needs, reputed moneylenders can approve them within a day. Once lenders review your credit history and other criteria like annual income, you are good to get the loan.
Do not forget that there are a lot of alternative terms for a short-term personal loan, like a payday loan, cash advance, payday advance, fast loans, payroll advance, and payroll loan. Ensure you check with your financial lender about what they call it.
What Are the Use-Cases of a Short Term Personal Loan?
Here are a few of the reasons you might need a short term personal loan for –
1. For Loan Repayments
If you have a huge debt and are unable to clear it off, a short-term personal loan can help you. It will allow you to manage your multiple debts and pay them off quickly. This way, you can save money and get in charge of your finances.
However, remember that even short-term personal loans come with interest. So do not borrow it if you can’t afford to pay it back.
2. For Unexpected Payments
While you can plan your monthly expenses, there can be a few unexpected payments. After all, you can’t plan everything. It can include an unplanned purchase, a medical visit, a car repair, or lending money to a family member. A short-term personal loan can serve the purpose of your need for extra cash.
3. For a Large Purchase
If you are investing in a huge asset, you might want to consider getting a long-term loan. However, what if you have the most money for the purchase and need just a little financing? If you don’t have enough cash in hand for large purchases, a short-term personal loan will help you.
You can also use it for small purchases like furniture, a small construction, or home assembling products.
4. For a Financial Emergency
Emergencies do not come knocking on doors. If you don’t have enough savings, it’s difficult to manage a financial crisis. The most common option is to borrow money from a friend or family member. However, if that’s not possible, you should try getting a short-term personal loan. Be it a job lay-off or a medical expense, it will help you get back on your feet.
5. For Miscellaneous Expenses
The best part about a short term personal loan is that you can use it for any personal expenses. It comes with a lot of flexibility. So you can use it for food and groceries or pay rent and utility bills. It can also help you with personal upkeep, home or vehicle repairs, and travel expenses.
Benefits of a Short-Term Personal Loan
Here are the benefits of short-term personal loans –
1. Offers Convenience
Everyone knows getting a loan is a stringent process. However, if you want an unsecured short-term personal loan, the process is quite easy. Moneylenders have an easy application process. Once you provide all the necessary information, they run a check. If everything goes right, your application can get approved as fast as within a day, with the amount credited to your account almost immediately. The convenience of it all makes it an easy financial help.
2. It’s Flexible
Unlike long-term loans, short-term loans are flexible in terms of loan amount, repayment, and interest rates. You can sit with your moneylender, discuss your needs and preferences for repayment, and create a flexible schedule. Most moneylenders offer weekly, bi-weekly, monthly, or payday repayments.
3. Easily Accessible
As we mentioned at the beginning of this blog, short-term personal loans are gaining a lot of momentum in Singapore. It is because these loans are easily accessible. Moneylenders are even offering it digitally, so the process can be even quicker without you needing to present physically there. Some lenders may need face-to-face verification before providing you with the loan to avoid identity theft.
4. No Stress of Strict Credit Check
If you have a poor credit history, it will be difficult for you to borrow a long-term personal loan or business loan. Lenders loan money to you based on your creditworthiness. However, in the case of short-term personal loans, the criteria for your creditworthiness are different and less stringent. Most money lenders focus on your annual income rather than your credit score.
Where to Get a Short Term Personal Loan in Singapore?
A short term personal loan in Singapore can come in handy to you if you have unavoidable expenses. However, do not be in a hurry to get it. Different moneylenders in Singapore have different interest rates, repayment terms, and fees. Take all factors into consideration before making your decision.
SGP CREDIT, one of the most reputed licensed moneylenders in Singapore, offers the most streamlined loan process at affordable interest rates. Get in touch with us today.