Sometimes, unexpected expenses pop up, and you need quick cash. Short term loans in Singapore are a great way to handle these immediate needs, whether it’s for a personal emergency, business expense, or urgent bill. Thanks to short term loan lending, you can cover these gaps without the commitment of a long term loan.
If you’re not sure how short term loans work, we’re here to explain what a short term loan is, how short term loan lenders can help, and what are the various short term lending options you can consider for quick funds.
What exactly is a short term loan?
A short term loan in Singapore is a loan meant to help with quick financial needs, with repayment usually completed within 12 months. These short term loans are ideal when you need money fast but don’t want a longstanding financial commitment.
Unlike long term loans that stretch over several years, short term loans are designed for immediate needs and shorter repayment periods, which makes them a good choice for people who need funds urgently but want to pay it off sooner rather than later.
A quick look into short term loans in Singapore
Here’s what you should know about short term loans and short term lending in Singapore:
- Quick Approvals: Many short term loans are approved within hours.
- Flexible Terms: Repayment can be up to 12 months.
- No Collateral Needed: You don’t need to put up assets like your car or home.
- Variety of Options: There are different types of short term loans to fit your needs.
- Higher Interest Rates: These loans often have higher interest because of their short repayment period.
How will a short term loan in Singapore benefit you?
A short term loan in Singapore has many advantages, especially if you need quick cash without prolonged debt.
Flexible Repayment
With short term lending, you can choose a repayment period that works for your budget, usually up to 12 months. This helps you pay off debt quickly and avoid years of payments.
Quick Approval
One of the biggest benefits of short term loans is how quickly they’re approved. Many short term loan lenders require minimal documents, so you can get the funds you need without waiting days or weeks.
No Perpetual Debt
With a short term loan, you borrow just what you need and pay it back within a short time frame — which can be as short as 1 month with a 1 month loan or 12 months with a 12 month loan. With short term loan lending, you can easily handle urgent costs without taking on debt that continues for years on end.
Simple Requirements
Most short term loans have basic requirements like proof of income and identity, making them extremely easy to apply for. On top of the fuss-free application procedure, short term money lenders, particularly authorised money lenders, are not super stringent with their requirements unlike banks or certain financial institutions. This straightforward process makes short term loans a good option if you need money fast.
Multi-purpose Use
What makes the concept of short term loan lending so attractive is how versatile it can be. Whether it’s a car repair, a medical bill, or a business cost, short term loans can be used for almost any need, giving you the freedom to handle whatever comes up.
Types of short term loans in Singapore
Here are some common types of short term loans available:
- Invoice Financing: Helps businesses get cash quickly by pegging against their customers’ unpaid invoices.
- Payday Loans: Covers expenses until your next paycheck.
- Lines of Credit: Flexible credit up to a certain limit, with interest charged only on the amount drawn when you use the facility. There’s usually a fee involved for keeping the credit facility open.
- Merchant Cash Advances: A cash advance for businesses, repaid through future sales.
- Personal Loans: Short term unsecured loans for various personal needs.
- Emergency Cash Loans: Quick funds for urgent situations.
- Bridging Loans: Helps cover costs between buying a new property and selling your current one.
How to choose the best short term loan in Singapore
To find the best short term loan in Singapore for your needs, here are a few tips:
1. Compare Short Term Money Lenders
Not all short term loan lenders are the same. Look for lenders with fast approvals. Some even offer one hour loans if you need cash immediately. Check if the short term lenders are listed under the List of Licensed Moneylenders in Singapore. Only borrow from these registered lenders.
Alternatively, you may also choose to borrow from other forms of short term lenders like banks or private funders. Do ascertain your eligibility with the short term lender of your choice.
2. Check Rates and Terms
Review the interest rates, fees, and repayment options. Choose a short term loan that fits your budget and timing needs.
3. Know Borrowing Limits
The Ministry of Law sets borrowing limits to keep debt manageable. Make sure your short term loan from authorised lenders fits these limits.
4. Meet the Requirements
Each short term loan lender may have specific requirements. Check that you meet them, like age and income. You may also need an MLCB report to verify your credit.
5. Read Reviews
Looking at reviews from other borrowers can help you find a trusted short term lender. Positive feedback on quick approvals, fair interest rates and charges, and easy terms are good signs.
Get a short term loan with Dio Credit
Dio Credit makes getting a short term loan in Singapore lightning-quick and straightforward. We provide a variety of short term loans for different needs, with a fast application process, clear terms, and flexible repayment options. As a licensed lender in Singapore, Dio Credit offers reliable short term loan solutions that are safe and transparent altogether.
Ready to apply? Apply now or contact us today to start your short term loan application. Dio Credit is one of the established, trusted short term lenders in Singapore that provides you with the financial support you need, when you need it.
