What Does “Short Term Loan” Mean?
5 Benefits of Short Term Loans in Singapore
1. You Pay Less in Interest
2. Your Loan Application’s Approval Is Faster
3. You Benefit From Greater Flexibility
4. You Stand to Boost Your Credit Profile
5. No Collateral Is Required
Find Out What You Can Use Short Term Lending For
To Settle High Interest Debt
To Capitalise on an Investment Opportunity
To Plug Gaps in Your Income
To Immediately Resolve Smaller Personal Emergencies
The Different Kinds of Short Term Loans in Singapore
- Payday Loan – A short term loan where you borrow an amount equal to a portion of your monthly salary and repay it once you receive your following month’s paycheck.
- Credit Line – A solution from a short term loan lender which functions differently than a “regular” loan. Think of it as an account you can draw funds from anytime and repay – with interest – the exact amount you borrow.
- Invoice Financing – An enterprise-specific short term loan that allows borrowers to receive a cash advance equal to the unpaid invoices from their customers.
- Bridging Loan – A type of short term loan that’s usually for housing in Singapore. It “bridges” the gap while you’re waiting for the funds from selling off your property to purchase a new home.
- Emergency Cash Loan – In essence, a short term loan which you can receive approval for almost instantly. Borrowers would apply for this from short term loan lenders when they need money right away, such as for a major medical emergency.
- Merchant Cash Advance – If you run a business which needs working capital, most short term loan lenders offer this solution to inject some much-need funding into your company.
- Instalment Loan – This flexible solution from short term loan lenders can also be a longer term loan. It involves borrowing an amount of money and repaying it across a fixed number of monthly instalments and interest rates, hence the name.
- Personal Loan – Like an instalment loan, a personal loan can be a short term loan or a longer term solution. All short term loan lenders offer this and it’s the most common product borrowers apply for.
How Can You Get the Best Short Term Loan
- Before applying for solutions from short term lenders, check whether you’re eligible for their short term loans. As a quick guide, you need to be employed in Singapore, legally reside in Singapore, and have a stable income.
- Don’t stop at one. Submit your application to different short term lenders and compare their offers against each other. There’s no need to accept any offer on the spot, and definitely avoid firms that pressure you to do so.
- Do the maths for all the short term lenders you received loan offers from. Calculate the total repayment (incl. all fees and interest) and go for the most affordable one. Ensure you’re comfortable with the repayment period as well.
- Understand the Ministry of Law’s rules and regulations for licensed moneylenders in Singapore. These include the maximum interest and fees they can charge for short term loans, along with the borrowing limit for applicants.
