Urgent loans can help you overcome short term hurdles

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Urgent loans can give you fast access to the cash you need and overcome a short-term financial hurdle

By: Hitesh Khan/

Sometimes life throws you a curve ball and you don’t have the financial capacity to cope. It could be an illness or injury, expensive car repairs or a short-term cash flow problem when several unexpected bills drop into your inbox at the same time.

urgent loans
Image credit: Public Domain Pictures

When this happens, you might need urgent loans to help pay your bills and get your finances back on track.

Urgent loans short-term loans designed to provide the funds you need in an emergency. You can use this money for just about any purpose, from urgent repairs to paying essential bills, and you must repay it during a term ranging from 2 days to one year.

Although a good credit history makes it easier to gain loan approval, some lenders also offer urgent loans to borrowers with bad credit.

More stringent personal loan restrictions to kick in from next year

There are several types of loans available to borrowers in Singapore:

1. Short-term loans

Also known as ‘Payday loans’, they are usually loans of between $1,000 and $35,000, and you typically pay the money back in line with when you receive your regular income. Payday loan lenders generally lend on the principle that the greater the risk that you represent to the lender, the higher the interest rate on the loan. Interest rates on loans with bad credit tend to start at a very high range.

2. Unsecured short-term loans

These types of personal loans do not require you to offer an asset as collateral for the loan. Usually available with a minimum loan term of one year, short-term unsecured loans need you to meet strict lending criteria and typically come with higher interest rates and fees than secured loans.

3. Secured short-term loans

If you do not qualify for a traditional loan and cannot stomach paying high interest rates under any circumstances, consider a secured personal loan. Secured loans offer a lower interest rate option for those with poor credit, since there is no credit check necessary — the lender has an asset that can be claimed or repossessed in case of non-payment. However, secured personal loans are limited to the value of the asset (or less, depending on the lender’s policies). You also have to weigh the lower interest rate against the risk of having an asset repossessed.

5 tips for boosting your chances of getting personal loans

Urgent loans usually include the following features:

  • Short-loan terms. You typically have between 2 days and 1 year to pay back the money you borrow.
  • A loan from $1,000. If you choose a loan from a payday lender, loan amounts range from $100 up to $2,000. Depending on your financial circumstances and the lender, it may be possible to borrow more through a secured or unsecured short-term loan, sometimes with amounts of up to $10,000 available.
  • High fees. Short-term loans also tend to attract higher fees than traditional personal loans. Look for establishment costs and ongoing monthly charges when you compare loans.
  • Fast application and approval. As these loans usually involve borrowing a small amount for a short period, many lenders offer quick and easy applications. Some lenders can also provide instant loan approval and transfer the funds into your bank account within one business day.
  • Missed repayment penalties. One final feature you should be aware of with urgent loans is that lenders usually impose strict penalties if you miss a repayment. These fees can be substantial and could lead you further into debt.

Nobody wants to pay a higher interest rate than he or she has to, so consider the purpose of your urgent loans before applying. Is it for debts or upcoming expenses that require immediate attention, or can the loan wait until you have an opportunity to build up your credit score and receive a better rate?

Only you can answer that question, but at least be sure to ask the question before you rush into getting urgent loans.

urgent loans do ensure that you have alternatives, but be sure to check them out thoroughly. Review the terms to make sure that you understand all the fees and potential charges, and calculate the total amount of money you will pay over the life of the loan. Choose poorly, and you could be caught in a seemingly endless debt cycle. Choose wisely, and you could be on your way to improving your financial position while rebuilding your credit.

How to Secure a Personal Loan Quickly

If you have limited capital and are searching for a personal loan to expand your business, the loan consultants at iCompareLoan can set you up on a path that can get you a it in a quick and seamless manner. Our loan consultants have close links with the best lenders in town and can help you compare various loans and settle for a package that best suits your needs. Find out money saving tips here.

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If you are looking for a new home loan or to refinance, our Mortgage brokers can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the best home loans in Singapore. And the good thing is that all our services are free of charge. So it’s all worth it to secure a loan through us for your business expansion needs.

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