While payday loans in Singapore are often seen as ‘predatory’ types of loans, there’s no doubt that they helped people deal with their immediate cash problems. A payday loan is also known as cash advance and lenders typically offer them to employees. Since a payday loan can be issued fast, you can use the money as soon as possible. The only downside is the interest rate and quick turnaround time—you have to pay the loan in the next payday. Today, it is being debated if payday loan providers should indeed lower their rates.
Which Rate is Ethical?
While there is no definite standard on the real ‘ethical’ interest rate, laws exist to regulate it properly. An ethical rate doesn’t prey upon the situation of the borrower. Monetary trouble has already caused the borrower to ask for a payday loan, and taking advantage of the situation can make things worse. This is one of the main reasons why people who rely on payday loans sink deeper in debt. Before signing any personal loan agreement, make sure that the rate is manageable enough and you can get rid of the loan as soon as possible.
The Factor of Time
The amount of time needed for the loan to be paid should be extended by all means. Typically, once you applied for a payday loan, you only have 15 days to pay for it. This totally outweighs the payment time of other loan programs such as mortgages, personal loans, appliance loans, and student loans. If you think that a lender offers outrageous terms on payment time, then look for another licensed money lender in Singapore. By widening your search, you can find lenders that are somehow lenient in their payment terms.
Banks and financial institutions are more than qualified to offer payday loans compared to back alley lenders that you barely know. While this is not a guarantee that banks will offer more flexible terms, they operate within the bounds of just and honest lending. Also, if you’re going to rely on banks, you can expect for tighter credit checks and personal documentation. To find the best banks that offer flexible cash advance loans, you can check out financial forums. These forums usually deal with complaints and questions of everyone. Occasionally, financial experts will also share their tips and tricks.
At this fast-paced era, it’s imperative that lenders should lower their payday loan rates. This can give more chances for people to deal with their financial problems effectively.