Presonal loans and borrowers

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Today, financial security can be somewhat and frustrating to get a hold of. Oftentimes, low to middle income people have difficulties in prioritizing their spending; and this is especially true for those who have just finished their studies in college, but are burdened with student debts. Most of the time, such people are left with little or no funds to support a decent lifestyle after paying their bills and other more pressing matters that require funding.

Circumstances often force people to sell their assets or borrow money from banks or from contacts. Usually, personal loan in Singapore from banks need to meet a minimum amount to be borrowed – and that amount is too large for the borrower’s needs. Not to mention that the banks require a lot of paperwork to be done before they can release the funds. And that is why payday loans came into being.

Payday loans, also known as “cash advances” or “payday loans”, are short term loans that are usually paid once the loan’s recipient has available funds. The deadline of the loan’s payment is not strictly connected to the borrower’s payday; the borrower can pay the loan anytime within the loan’s target date of payment. The loan gives enough time until the borrower’s next few paydays, so he does not need to worry about his inability to pay back the loan as long as he has a secure source of income. These loans can greatly help the people in times of financial need.

So how does one apply for these payday loans in the ? The process of applying for a payday loan begins with the borrower visiting the lending outlet to get the loan, usually of small cash value. The borrower then agrees to repay the loan in full at his or her next paycheck (or at a reasonable span time when the loan can be repaid). The borrower may or may not leave collateral in the form of a postdated check with the value of the loaned amount plus fees. He is then expected to pay the loan in person on or before the agreed deadline. If the borrower fails to pay at the designated date, the lender can then en-cash the check that the borrower left as a collateral, if any.

What makes these payday loans so beneficial? For one, this enables the borrower to loan small to medium sized amounts without the hassle of doing as much paperwork as the standard bank loan; oftentimes payday loans only require a proof of employment or income for the loan to be processed. Not to mention the loan gets processed in less than a day. Interest rates won’t become a problem too, as there have been laws that limit the interest rates that the loan incurs to safeguard people from loan sharks. These are only some of the reasons why payday loans can get one out of a financial stalemate.

Although payday loans are generally frowned upon because it means the borrower is spending more than he or she is earning, these loans can make the difference between living decently or suffering until the next paycheck.

 

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