Payday loans usually take minutes to process and are instantly approved despite your bad credit history. Normally, these loans are due the borrower’s next payroll though there are instances the period may be extended by 15 days from the time the loan was due. This type of loan comes in handy when you have an emergency though it attracts a higher interest rate. As such, it is important for the borrower to consider his next paycheck as well as the amount he is able to pay back before taking a payday loan. Nevertheless, lenders may provide “re-purchasing” options if the borrower thinks he might not be able to pay on the agreed due date though this might come with an extra cost.
For an individual to be eligible for payday loans, he should be 18 years or older, a legal resident of Singapore, have a monthly income, a valid bank account, and a valid Singapore address. Unlike auto loans and mortgages, payday loans do not consider your credit history. As such, this kind of loan is available for individuals with less-than-stellar credit ratings. In addition, you don’t have to provide proof of identity, which normally requires you to visit the bank or fax his identity card. With access to the Internet and in possession of a checking or savings account, you can instantly receive the loan.
The unique advantage about this type of loan is the fees that come with it are usually lower than what the borrower expects when his payment check bounces, he fails to pay his credit card bill on time or when one of his utility is disconnected. In case the loan becomes delinquent, the company normally attempts to reach out to the borrower via telephone and work out a payoff arrangement. However, if the borrower fails to comply, the company is mandated to send the loan to a collection agency that attempts to recover the money lent in good faith.