For many of us, we are often encouraged to save up plenty so that we may be prepared for any unexpected financial needs. From medical emergencies, urgent home repairs or maintenance, or an unforeseen sudden expense, these occasions often highlight the need to have access to quick funds.
What happens if we should incur such an expense without any emergency funds? Fortunately, to help us address these unexpected costs, there are many potential short-term loan options that are available to us, such as payday loans, as well as personal loans, credit cards, and salary advances. These are usually offered by banks, licensed moneylenders, or even your own employer, depending on the company’s policy.
Despite the wide range of possibilities, we at Quick Loan still believe that it is crucial that we understand the differences in these short-term loan options, especially in their terms and conditions. This is so that we are able to make informed financial decisions when selecting one of them for our own needs.
Understanding Payday Loans
A payday loan is exactly what the name seemingly describes; a short-term, unsecured loan that’s designed to provide immediate and quick cash to borrowers, so that they can ride through any sudden major expenses until their next payday.
Speed: ★★★★★
Payday loans are often characterised for their rapid processing times, often accompanied with quick, if not instant, approval rates and minimal eligibility requirements. Many licensed moneylenders, such as Quick Loan, will have the funds disbursed within 24 hours of application, making payday loans ideal for emergency situations.
Eligibility: ★★★★★
The eligibility for borrowers to obtain a payday loan are usually quite simple and fuss-free. Borrowers will need to provide valid identification, proof of income, as well as an active bank account to qualify. Furthermore, stringent credit checks are often not necessary, making payday loans accessible to a wider range of borrowers.
Repayment: ★★★★☆
As the name suggests, borrowers are often expected to repay the loan on their next payday, usually within two or four weeks, depending on their agreement. Hence, a short repayment period will require borrowers to be careful on their budgeting, to ensure that their payday loan can be repaid without any financial pressure.
Personal Loans: A Comprehensive Overview
Being the most common type of loans, personal loans are unsecured loans that banks, credit unions, and various lenders offer to borrowers for their various needs. This usually comes in the form of an agreed lump sum, that will be repaid by the borrower over a fixed term with interest.
Speed: ★★★☆☆
Personal loans usually take longer than payday loans, due to the higher sums that are available to the borrower, and will take at least several days to a week. This is due to more extensive checks in place, including a thorough credit check, as well as verification of a borrower’s financial information and background.
Eligibility: ★★★★☆
Lenders will usually require a deep assessment of a borrowers’ creditworthiness, which will include evaluating their credit scores, income levels, and debt-to-income (DTI) ratios, to confirm their eligibility. Applicants with higher credit scores may enjoy favourable terms, on top of their approval, whereas those with lower scores may find themselves with higher interest rates, or outright rejection.
Repayment: ★★★★★
Repayment periods for personal loans are usually much longer than payday loans, stretching from one to seven years, with fixed monthly payments. While this repayment plan allows borrowers greater flexibility in their financial budgeting, they are also saddled with a long-term financial commitment due to the lengthy duration.
Credit Cards: Revolving Credit Explained
Credit cards are a popular form of revolving credit provided by banks, finance companies, and certain stores, that allow its borrowers to access short-term funds up to a predetermined limit.
Speed: ★★★★☆
The initial application and approval process for obtaining a credit card can take several days to weeks, depending on the processes of each lender. However, once approved, a credit card’s funds are readily accessible for any purchases or cash advances that a borrower might require.
Eligibility: ★★★★☆
Approval for a credit card depends on the borrower’s income, credit history, as well as any existing debt. Borrowers who maintain a high credit score will have access to favourable interest rates and higher credit limits granted by the lender.
Repayment: ★★★★☆
Credit cards usually require monthly repayments, with the most of them allowing a minimum amount to be met by borrowers first and the balance brought over to the next month. However, the latter will accrue interest, often at high rates. Thus, it is always encouraged for borrowers to pay off their credit card balances in full to avoid such charges.
Salary Advances: Employer-Based Assistance
A salary advance, or also known as advance salary, is an arrangement between an employer and an employee, where the former provides the latter with their next upcoming salary ahead of their scheduled payday.
Speed: ★★★★☆
The speed of receiving a salary advance depends vastly on each company’s policy, but is usually quick once it has been approved by management.
Eligibility: ★★★★☆
Eligibility solely lies on the employer, and may be affected by certain policies within the company, including the contract of employment, and guidelines set within the organisation.
Repayment: ★★★★☆
The amount given in the salary advance is usually deducted from the employee’s future paychecks, reducing their overall salary until the advance has been fully repaid.
Conclusion: Choosing the Right Short-Term Loan Option
For each short-term loan option, there is no right or wrong when it comes to selecting the most appropriate option for your own needs. Depending on your own financial needs, urgency, credit standing, and repayment capacity, it is best to understand your own requirements in detail before choosing a short-term loan.
For example, payday loans are the best when it comes to rapid access of funds for emergencies without any fuss, but personal loans and credit cards offer larger amounts with longer repayment terms, at the cost of long application processes. Salary advances, while attractive to some, will wholly depend on your company’s policies and may not be readily available as the other options.
| Speed | Eligibility | Repayment | |
| Payday Loans | ★★★★★ | ★★★★★ | ★★★★☆ |
| Personal Loans | ★★★☆☆ | ★★★★☆ | ★★★★★ |
| Credit Cards | ★★★★☆ | ★★★★☆ | ★★★★☆ |
| Salary Advances | ★★★★☆ | ★★★★☆ | ★★★★☆ |
Quick Loan’s Payday Loans: The Best Choice for Sudden Expenses
For those seeking quick and accessible financial assistance for their own urgent needs, look no further. Quick Loan’s payday loan services are tailored specifically to offer reliable solutions to your own unique requirements efficiently and effectively.
As Singapore’s most trusted moneylender, licensed by the Registry of Moneylenders, we are more than ready to support your financial needs with 30-minute loan approvals that are up to 6 times your monthly salary. No guarantor is required, and cash will be dispensed on the spot after processing is done.
Here are a few reasons why you should consider Quick Loan for a payday loan:
- Flexible and Personalised
As a reputable licensed money lender in Singapore, licensed by the Registry of Moneylenders and compliant with the Moneylenders Act, we offer flexible repayment plans to fit your unique needs and circumstances. You’ll also get a dedicated loan officer who’ll support you throughout your loan process with us.
- Affordable Repayment
Since our repayment plans are tailored based on your salary and needs, you can expect more affordable repayment on your payday loan. At the same time, we keep our interest rates low, making it easier for you to repay the loan without incurring excessive costs. This combination of personalised repayment plans and competitive interest rates makes our payday loans a financially sound choice in Singapore.
- Effortless Application Process
Unlike banks, we offer instant payday loan approval in just 20 minutes after applying. We understand the urgency of your needs and aim to provide quick and efficient service, ensuring you get the funds you need without unnecessary delays. Our streamlined process is designed to make borrowing as straightforward and hassle-free as possible.
Before applying, please make sure you have these documents on the ready:
1. Singaporeans/PR
- National registration identification card
- Singpass
- If renting, provide both:
- Your tenancy agreement
- Proof of address, such as your phone bill or utility bill
- Payslips for the last three months, if available
- Bank Token
2. Foreigners
- Singpass / Employment Pass / Work Permit with a minimum 6-month validity
- Passport
- Residence information in the form of both:
- Phone bill or utility bill
- Tenancy agreement
- Payslips for the last three months, if available
- Bank Token
- Employment contract
- Staff card
Once you’ve prepared all the necessary documents, you can apply for a payday loan online or by going to the office. Or, if you have questions or concerns, feel free to contact us via WhatsApp, our customer service staff will be happy to answer any questions you have.
Don’t let unexpected expenses ruin your daily routine! Tackle your financial needs with ease and a peace of mind with Quick Loan, with our fast approval, minimal requirements, and instant access to funds when you require them. Apply for your payday loan with one of the most trusted and reliable licensed moneylenders in Singapore today!
