Articles . Loans . Personal Finance . Useful Information

What Is the Easiest Loan to Get Approved For?

July 22, 2022

A personal loan is the best option when you face an urgent financial need. Be it a medical bill, credit card repayment, a renovation or a car maintenance, borrowers can use a personal loan for it. In fact, a personal loan is the easiest loan to get approved for.

Personal loans are easy to apply! No one wants to go through the hassle of applying for a loan only to be denied. Personal loans are great for those who want to get an approval quickly and get the money we need and move on with our lives.

Time is the deciding factor. Let’s learn more about the easiest loans to get approved for here.

What Is the Easiest Loan to Get Approved For?

Since financial institutions in Singapore, specifically licensed money lenders, offer many loans, knowing which one to choose can be challenging.

Each loan has different eligibility requirements; some may be easier to approve than others. The easiest loans to get approved for include:

  • Personal installment loans
  • Payday loans
  • Pawn shop loans
  • Car loans
  • Student loans
  • Home renovation loans

All the above loans are short-term loans for borrowers. They are easily approved because the lending requirements are not strict, and the collateral is usually low.

Tips to Get Your Loan Approved

Are there ways to speed up your loan approval? How to get your loan quickly? If you want a loan in Singapore, you can do a few things to increase your chances of approval. Some of them include:

1. Credit Score Improvement
One of the things that banks and other lending institutions in Singapore look at when assessing a loan application is the applicant’s credit score. According to the credit bureau Singapore, a credit score ranges from 1000-2000, with 1000 being the lowest and 2000 being the highest.

If your credit score is on the lower end, there are things you can do to improve it, such as paying your bills on time and keeping your credit card balances low.

2. Bring All the Required Documents
Another thing that can increase your chances of getting a loan approved is meeting all the eligibility criteria and having all the required documents. Make sure you check the lender’s requirements before you apply so that you can be sure you meet them.

Requirements for both residents and permanents include:

  • Your identity card (NRIC/Passport)
  • Employment proof
  • Residential proof
  • Singapss

Requirements for foreigners include:

  • Work permit or employment pass
  • Employment proof
  • Residential proof
  • Singapss
  • Income proof

3. Analyze the Market Conditions
The market conditions also play a role in whether or not you will get your loan approved. In times of economic stress, banks and other financial institutions are more likely to be stricter with their lending criteria. They withhold loans to minimize their risks.

However, you have a higher chance of getting approved if you apply for a loan during good economic times. This is because the banks are more confident and are willing to lend money more freely.

4. Look for a Non-Bank Financial Institution
If you want your loan to be approved, you definitely must have to find the right lender to borrow from. Many licensed moneylenders in Singapore are not banks. And because they are not banks, they are not bound by the same rules and regulations. This means that they can be more flexible with their lending criteria.

So it would be best if you considered borrowing from a licensed money lender, to increase your chances of getting a loan approved.

What Does a Licensed Money Lender Do?

Licensed money lenders in Singapore are financial institutions that the government licenses to provide loans to individuals and businesses. These money lenders must adhere to strict regulations by the Monetary Authority of Singapore (MAS). They run a legal financial business in Singapore and will have their own office.

Licensed money lenders in Singapore provide a variety of financial services. Some of the significant services offered by licensed money lenders are:

  • Instant loans to Singaporeans, that is both residents and permanents. Licensed money lenders provide Instant loan Singapore citizens whenever the need arises.
  • Provide loans to some foreigners in Singapore, that is, people who are not Singapore citizens but are in Singapore on a valid work permit.

If you need money now and cannot wait for the bank to process your application, the best place to borrow it is from a licensed money lender. This is because you will not have to wait for days or weeks to get your loan approved, as is the case with banks.

Also, the application process for a loan from a licensed moneylender is quite simple. An excellent example of a licensed money lender in Singapore is GS Credit.

How Can I Borrow Money Instantly?

If you need money now in Singapore, a few options are available.

You can choose to apply for a personal loan from a bank or a licensed moneylender. Thanks to technology, we are able to apply for a loan online within minutes! Personal loans are unsecured loans, meaning that you will not be required to produce any collateral.

If you have a valuable item and want to take a secured loan, you can pawn your items at a local pawnshop. They will return your item when you’ve repaid your loan.

What Is a Short Term Loan?

A short-term loan is a type of loan you are supposed to repay within a short period, typically within one year. You can use short-term loans to cover unexpected expenses or to take advantage of opportunities that require quick funding.

Types of short term loans in Singapore:
Payday Loans
Payday loans are short-term loans repaid on the borrower’s next payday. The loans are typically for small amounts of money, and the fees have etched high.

Car Loans
Car title loans are short-term loans that use your car as collateral. The loan is typically for a small amount of money and has a very high-interest rate. You should be very careful before taking out a car title loan because if you cannot repay the loan, you could lose your car.

Pawn Shop Loans
Pawn shop loans are short-term loans that use an item of value you own as collateral. The loan is typically for a small amount of money and has a very high-interest rate. You should be very careful before taking out a pawn shop loan because if you cannot repay the loan, you could lose the item you used as collateral.

Personal Installment Loans
Personal installment loans are a type of short-term loan that you should repay in installments over some time. This type of loan enables you to get more money compared to other short-term loans and offers lower interest rates.
However, the repayment period is usually more extended than other short-term loans.

Benefits and Drawbacks of Short Term Loans

Benefits of Short Term LoansDrawbacks of Short Term Loans
1.Short-term loans have a short and quick application process that you can complete online in minutes.Higher interests: Short-term loans generally have higher interest rates than longer-term loans. This is because short-term loans are considered a higher risk by lenders, so they charge higher interest rates to compensate for this risk.
2.Short-term loans get approved faster than traditional ones, so you can immediately access the cash you need.Can make one complacent: A short-term loan can sometimes make borrowers complacent due to the small amounts and short repayment duration, thinking they can handle it. However, if you are not disciplined, this can quickly lead to debt spiraling out of control.
3.Less interest is paid over the life of the loan because the loan term is shorter.Creates opportunity for loan sharks: Loan sharks are illegal moneylenders who often target those who have taken out short-term loans and are struggling to repay them. They offer to lend more money at extremely high-interest rates, which can trap borrowers in a cycle of debt.
4.Short-term loans help you improve your credit score, enabling you to apply for long-term loans in the future.Be wary of loan scams in Singapore.

What Documents Do I Need to Prepare for a Loan?

You must prepare a few documents when you want to take a loan in Singapore. These documents are:

  • Proof of your identity: You will need to show your NRIC or passport as proof of your identity.
  • Proof of your income: You will need to show your latest payslip or income tax return to show how much you earn.
  • Proof of your address: You will need to show a recent utility bill or bank statement to show where you live.

Who Is Eligible for an Unsecured Loan?

An unsecured loan in Singapore is a type of personal loan that does not require the borrower to put up any collateral. This type of loan is typically used for smaller loans and is often used to cover unexpected expenses or consolidate debts.

The main advantage of an unsecured loan is that it is easier to qualify for than a secured loan. However, the interest rates on unsecured loans are typically higher than those on secured loans.

To be eligible for an unsecured loan in Singapore, you must be at least 21 years old and a Singapore citizen or permanent resident. You will also need a regular income and a good credit history.

The eligibility requirements may vary from lender to lender, so checking with your chosen lender before applying for a loan is essential.

Where Can I Borrow Money Immediately?

Suppose you need an easy loan in Singapore. You must be wondering where you can borrow money immediately. If you want to borrow money immediately, the best place you can go is GS Credit.

GS Credit is the best licensed moneylender in Jurong. As a proud member of the Moneylenders Association of Singapore, we always strive to ensure that the highest standards in professionalism and transparency are met.

We aim to help improve the finanical health for all Singaporeans and Foreigners. GS Credit will be there whenever there are financial emergencies and lend a helping hand to those in need. For those we require urgent financial help, we are available.

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