Reasons Why Payday Loan Is Popular in Singapore?

Posted by jane on December 23rd, 2015

A payday loan is a temporary loan of a little amount that is used to cover emergencies temporarily. Usually, people take payday loans so as to settle their bills and then pay back the loan when they take the next paycheck.

Generally, many take payday loans for several reasons as following:

1. To pay daily expenses such as food, rent and utilities. In Singapore, there are still many people do not have enough money to pay off their daily expenses. Many people especially young people have no savings and no budget plan.
2. To pay off a car repair bill. Though auto repair cost has gone down but it still needs a quite large amount of money to pay when the car breaks down.
3. To pay for medical emergency. Life is full of suprises as well as accidents. Medical procedures are more expensive and urgent than other kinds of unwanted expenses.
4. You may need a payday loan when the checking account is overdrawn. If there is an overdraft, the bank will charge you an overdraft fee and take out a specific amount from your bank account every day until you pay it back in full. In this case, you may need a payday loan to deal with overdraft.
5. For unexpected travel needs.
6. Failed to get a bank loan.

When all these things happen, life will be difficult. And many people will consider taking a loan from banks first. However, the approval procedure will be long and tedious with strict conditions. That is why so many people prefer to get a payday loan from licensed moneylender now. There are four reasons why the payday loan is popular in Singapore.

First of all, it has a fast and easy procedure. Taking a payday loan from a licensed company in Singapore needs less time and the loan will be approved fast. Commonly, the application will be approved by the money lender within 1 day in working day.

Secondly, no needs to check credit history. This is quite suitable for those who have a bad or poor credit score but want to get instant money to solve the emergency situation.

Thirdly, no asset is asked for. It means that people do not have to put valued property such as house or car as collateral. Therefore, these loans are pretty suitable for low income people because there is no assets are required from the borrowers.

Finally, it is a way to improve or fix credit score. A Payday loan is a small amount loan. It is easy for people pay it off. Besides, you can also improve or fix your credit score stably by paying your bills on time monthly. Also the loan amount is small so you are able to pay it back.