Emergency Loans 101
Life is full of surprises. One minute, you feel like you’ve got your finances under control, and the next, unexpected expenses come knocking at your door.
It’s moments like these when you need to know how to secure an emergency loan in Singapore as soon as possible. Nobody wishes for financial emergencies, but having the option to access an urgent bank loan when needed can give you much-needed peace of mind.
Whether it’s an unexpected school project for your kids, an unforeseen medical bill, or the need to repair your home after something breaks, it’s comforting to know that an emergency loan in Singapore is readily available to you.
Here at OMY Singapore, you will discover the following:
What Is An Emergency Loan In Singapore?
An emergency loan is a fast and easy way to get access to funds when you’re facing unforeseen circumstances. This urgent bank loan is designed to help you cover unexpected expenses and emergencies that you may not have budgeted for.
When To Consider An Emergency Loan
If you’re struggling to make ends meet and are faced with mounting debt, an emergency loan can provide you with the financial relief you need. Rather than turning to ah longs which can be dangerous and illegal, an emergency loan is a safer and more viable option. Here are some instances where you may consider taking out an emergency loan or urgent bank loan.
When unexpected expenses arise, such as a medical emergency or car repair, an emergency loan can help cover the costs.
An emergency loan in Singapore can help pay for your expenses until you find a new job.
Natural Disasters/Home Repairs
If your property has been damaged by a natural disaster or simply needs repair, an emergency loan will enable you to afford repairs.
Appliances, furniture, electronics, and other large purchases can be expensive. If you don’t have the funds that you need to purchase these items, they can be funded by an emergency loan or urgent bank loan.
Types Of Emergency Loan
Not all types of emergency loans in Singapore are the same. Depending on your needs and financial situation, there are various types of emergency loans that you can apply for.
When it comes to emergency loans and urgent bank loan options, personal loans are one of the most popular options out there. These loans can be secured or unsecured and typically have a longer repayment term than other types of emergency loans.
With a personal loan, you can borrow a larger sum of money and have the flexibility to use it for various expenses. However, this urgent bank loan may not be processed as quickly as other types of emergency loan.
Credit Card Advance
If you have a credit card, you may be able to use it to withdraw cash when you need it most. However, remember that credit card cash advances come with high interest rates and fees, so this should only be used as a last resort.
Payday loans are short-term loans that are designed to be paid off when you receive your next paycheck. This type of urgent bank loan is typically easy to apply for and can be accessed quickly, making them a popular option for those in urgent need of cash. That said, this emergency loan in Singapore comes with higher interest rates so carefully consider whether this type of loan is right for you.
Car Title Loan
This secured loan requires you to put up your car as collateral so it can be risky as you may lose your vehicle if you fail to make the repayments. Despite this, car title loans can be an incredible option if you need a larger sum of money and have bad credit.
Advantages Of Emergency Loans
What makes an emergency loan in Singapore so advantageous? We’ve rounded up some reasons below.
Easy and fast application
Not everyone has the time to wait for weeks or even days to get approved for a loan. This is where an emergency loan in Singapore stands out. An urgent bank loan has a quick application process that can be completed online or in person. This means that you can get approved for the loan in as little as 24 hours, which is perfect for those who need money right away. Moreover, the requirements are also minimal.
Once you have secured an emergency loan, you have the flexibility to use the funds for a variety of expenses. Whether it’s to cover medical bills, car repairs, or even just to pay off your bills during a tough month, an emergency loan can provide you with the financial assistance you need.
Most emergency loan providers offer great repayment terms that can be tailored to your financial needs. You can choose to repay the urgent bank loan over a period of several months or even years, depending on the loan amount and your ability to make repayments. What’s more is you can easily calculate your monthly payments upfront. This helps you plan your budget more effectively.
Bad credit consideration
Even if you have bad credit, you may still be eligible for an emergency loan. Some urgent bank loan providers are willing to work with individuals who have less than perfect credit, though you may be subject to higher interest rates and fees.
Improves credit score
Your credit score is based on your ability to repay debts. Making timely payments on your emergency loan shows banks and financial institutions that you are a responsible borrower. When you pay your monthly dues on time, it can improve your credit score. This will make it easier for you to get approved for future loans with better rates and terms.
Where To Get Emergency Loans
Take a look at the following options to find the best emergency loan provider for your needs.
Perhaps the most traditional option for obtaining an emergency loan in Singapore is through a bank.
While traditional banks may offer the best interest rates, they may have stricter eligibility requirements and longer processing times compared to other lenders. If you have a good credit score and a stable income, a bank may be a good option for securing an emergency loan.
Licensed moneylenders are another option for those looking for an emergency loan in Singapore. They offer quick and easy access to cash, making them ideal for those who need an urgent bank loan. Keep in mind that licensed moneylenders in Singapore typically charge higher interest rates and fees due to the risk involved in lending to individuals with poor credit scores.
Credit unions and online lenders can also be great sources for emergency loans. Credit unions are not-for-profit organisations that offer loans at lower interest rates compared to banks.
On the other hand, online lenders have faster application processes and can provide same-day funding. However, it’s important to research the lender thoroughly before applying, as some may have hidden fees or high interest rates.
Can You Get Two Emergency Loans at A Time?
While it is technically possible to have two emergency loans at the same time, it is not recommended. If you have more than one emergency loan in Singapore, you are likely to be overwhelmed with debt and may find it difficult to repay both loans on time.
It is best to avoid taking out multiple emergency loans and instead, work on improving your financial situation in the long term. This could involve creating a budget, seeking financial advice, and exploring other options for financial assistance.
A Word from OMY
When times are tough, don’t hesitate to ask for help with your finances. Just make sure to repay your urgent bank loan on time and you’ll get through these difficult moments without hassle.
Remember, apply for an emergency loan in Singapore wisely by being a responsible borrower right from the start.
If you’re ready to get personalised loan offers, OMY is here to help. Our platform connects you with a network of trusted lenders who offer quick and easy emergency loans with manageable repayment terms. Get the best tailored loan options for you here.