A financial crisis doesn’t announce itself before it knocks on your door. You have to stay prepared for it — it can be just around the next corner or may never come. Either way, you have to keep enough savings aside that can help you swim through the emergencies.

But what if you do not have enough savings? Well, the next best option is to take a loan from a moneylender in Singapore.

Securing a loan used to be a challenge in Singapore at one point. However, today, Singapore moneylenders offer a variety of loans, a lot specifically customized as per the borrowers’ needs. One of them is a monthly instalment loan, which has flexible repayment schemes. It provides an immediate resort to emergencies without putting too much burden on borrowers.

In this blog, let’s learn what monthly loans are and where you can find 12 months loan lenders in Singapore.

What Are Monthly Loans in Singapore?

As the name suggests, a 12-month loan is an emergency loan where a borrower can get a loan and pay it back over 1 year. The 12 months loan lenders in Singapore formulate the instalments in a way that the borrower can pay back the principal plus the interest within one year.

Interestingly, the concept of a 12-month loan comes from the United States and Great Britain. They used the word ‘12 months’ to try and differentiate the period it takes to repay a loan.

Here are the features of a 12-month loan –

  • They are usually short-term loans that are usually due at the end of a year.
  • It’s considered quick cash as the loan gets approved the same day. Moneylenders will often disburse the loan amount very quickly; oftentimes even within a day of the loan application.
  • Your credit history may not be a prime determiner of whether you should get a 12-month loan or not.
  • 12-month loans are approved for those who are above the age of 18 years and have a regular salary in Singapore.
  • The quantum of 12-month loans is generally quite low compared to most loan types.

3 Benefits of 12 Month Loan

1.    Helps You Sort Your Finances

Unlike other kinds of personal or business loans, a 12-month loan provides borrowers with a 12-month instalment period. It gives borrowers ample months to ensure their loan amount can be repaid.

Also, since it is a short-term loan, the debt amount is relatively small. It is good for people who can’t handle their finances well. A huge debt takes years to repay, and managing finances can become challenging. Also, knowing that you’re not committing to a debt that takes years to repay gives borrowers peace of mind and convenience.

2.   Quick Loan Approval

A 12-month loan is a kind of fast cash loan. In today’s day, the approval of all kinds of loan processes has become easier. However, 12 months loan lenders in Singapore can approve your loan in a day!

The application for fast cash loans is easy and fast. They can, therefore, help you with emergency financial needs.

3.   Offers Loan to Borrowers with Bad Credit Report

A borrower’s credit report, and essentially, the credit score determines their creditworthiness. Licensed moneylenders review your credit report before approving your secured and unsecured loans. If your credit report is not up to the standards, you will be deemed a high-risk borrower, and your loan request will likely be cancelled.

However, in the case of a monthly loan, you’re a short-term lender. Even if your credit score is not up to the mark, the moneylender is not at high risk. Therefore, moneylenders are lenient on your credit report and assess your loan by analysing other avenues, such as asset values.

Eligibility and Requirement

Not all moneylenders require the same documentation on your loan application. Some may have different requirement terms. However, the below-listed eligibility documents are most likely to be expected –

For Singapore Citizens and Permanent Residents:

  • You need to be at least 18 years of age
  • Regular employment or income source of at least SGD 1,500 per month
  • Identity card/NRIC
  • Proof of residence
  • Tenancy agreement
  • Latest payslips (recent 3 months)
  • Employment letter (or certificate of employment)
  • SingPass to access CPF, HDB, and IRAS e-services (Note: do not provide username and password)

For Foreigners:

  • Regular employment or a regular income source of at least SGD 2,000 per month
  • Employment letter (or employment pass with a twelve-month validity period);
  • Proof of residence
  • Latest bank statement of account of at least six months
  • A copy of your Passport or other travel documents
  • SingPass to access CPF, HDB, and IRAS e-services (Note: do not provide username and password)

Are You Looking for 12 Months Loan Lenders in Singapore?

Singapore has a prevalent presence of loan sharks. They are illegal moneylenders who provide quick loans of huge sums at enormously high-interest rates. As a result, borrowers are unable to pay their instalments on time. To get their money back, they resort to illegal or violent practices, putting you and your family at risk.

Therefore, it is vital to ensure you borrow loans from licensed 12 months loan lenders in Singapore. They are affiliated with the country’s registry under the Ministry of Law.

When you begin to research suitable 12 months loan lenders in Singapore, shortlist the ones that are licensed. Go through the moneylender’s official website and social media channels. The most important bit is to locate their business name in the official registered moneylenders’ list in the Republic of Singapore. Only businesses with a lending license are on the list, and it is of utmost importance that you transact only with them.

If you want an emergency loan without any hassle, Avis Credit (SG) Pte Ltd can help you. We’re a licensed 12 months loan lender in Singapore, operating our loan service at competitive rates. You may avail of loans even online so that you don’t need to run around to get your loan application approved.

Get in touch with our loan officers today to discuss your requirements at +65 6883 2017.