You need funds for rainy days because of how unpredictable life is. However, some emergencies require more cash than your savings. For example, extensive medical care for a loved one’s illness or injury. This is where an emergency loan comes in handy.
In Singapore, it’s apparent people need an emergency loan after the shocks of COVID-19 in 2020 and rapidly increasing cost of living. This is evident in household debt consistently rising since late-2023. If you’re looking for an urgent money loan to resolve a sudden crisis, we’ll show you where to apply for one and how you can get the best personal loan rates.
Read on for more details about urgent money loans or emergency loans!
What is an emergency personal loan?
An emergency personal loan is a sum of money that you borrow to settle an unexpected crisis at home — you wouldn’t want to be rejected for a loan in times of dire need. This urgent emergency loan can be for the aforementioned illness or injury your loved one is afflicted with, or even a situation like sustained unemployment.
Emergency loans are usually approved and disbursed quickly. This is especially so if your application doesn’t contain any errors and if the maximum amount for a personal loan you wish to borrow doesn’t exceed the limit based on your annual income.
Although emergency loans are usually unsecured, you can provide collateral to secure one and further increase the chances of your application being approved.
Where can I get emergency personal loans in Singapore?
Licensed Money Lenders
The Ministry of Law authorises these firms to disburse personal and business loans. And with over 150 of them in Singapore, it’s easy to locate one when you need an emergency loan. Licensed money lenders can approve and disburse emergency same day cash loans in hours.
What’s more, the approval criteria for a licensed money lender’s urgent emergency loan are less strict than those of a bank. Instead of your credit score, your monthly income is the main requirement which determines how qualified you are for an emergency cash loan. That being said, an urgent money loan from a licensed money lender usually has higher interest rates and a shorter tenure.
Traditional Banks
These include household names like DBS, UOB, and OCBC. Traditional banks don’t just disburse loans. They also provide other financial services like banking and investing. Although they have emergency cash loans available, the approval process can take several days to a week.
With that said, you tend to enjoy lower interest rates and longer tenures when you take up an urgent personal loan from a bank. This makes banks the better option if you can plan your loans ahead of time, as opposed to needing cash almost immediately in an emergency.
Digital Banks
These fintech platforms include GXS Bank, MariBank, and Trust Bank. They provide the same services as a traditional bank, but don’t have branches with staff who can assist you. As digital banks are fully, well, digital, you can expect a streamlined application and approval process for emergency cash loans.
Even though the process is streamlined, you might still need to wait. Digital banks are full-fledged banks after all, and you may be subject to additional checks to determine your creditworthiness. Rest assured that interest rates and tenures are as competitive as traditional banks.
Emergency personal loan eligibility and application requirements
Traditional Banks
Applying for emergency cash loans with a bank is straightforward. You just need to complete your loan application form and provide the necessary supporting documents. If you’re a Singpass holder, you can often use MyInfo to fill the form in automatically. Otherwise, here are the application requirements:
- Be at least 21 years old
- Have a minimum annual income of S$20,000 or S$30,000, depending on the bank
- Submit a copy of your ID (NRIC or passport)
- Provide your latest payslip or latest six CPF contribution history statements
- Include your latest Income Tax Notice of Assessment (For 100% commission-based earners and the self-employed. Salaried employees can include this if they wish to apply for a larger loan)
- Add your residential address proof (Only for foreigners employed in Singapore)
Licensed Money Lenders
If you’re applying for an urgent personal loan with a licensed money lender, you’ll be relieved to know the process is largely identical. Meet these requirements and submit your loan application for the emergency same day cash loan:
- Be 18 years old and above
- Provide your three most recent payslips, CPF statements, commission statements, or other proof that you’re drawing a stable income every month
- Submit a copy of your ID (NRIC or valid Work Pass)
- Include residential address proof (Only for foreigners employed in Singapore)
How fast can you get your emergency personal loan funds?
You can be approved for an urgent money loan in under half a day and receive your funds even faster. Applying early on a business day helps ensure your urgent personal loan application gets processed swiftly. Also, do provide all the necessary supporting documents in your emergency personal loan application the first time around.
You wouldn’t want an incomplete or inaccurate application hindering you when you urgently need an emergency loan.
How much can you borrow in an emergency loan?
If you’re looking at emergency same day loans from banks, you can borrow 4 to 10 times your monthly income, depending on how much you earn every year.
If you’re taking up an urgent money loan from a licensed money lender, the loan limit ranges from S$500 to six times your monthly income. This depends on your residential status in Singapore and annual income.
Two tips for borrowing responsibly in emergencies
1. Only Borrow What You Really Need
There might be an abundance of lenders offering emergency same day loans, but don’t be tempted to borrow more than what you need to resolve the situation at hand. Use your savings and monthly income to repay the loan and rebuild your rainy day fund.
2. Create and Adhere to a Repayment Plan
Because you know exactly how much to borrow for your emergency same day loan, you can create a repayment plan for it easily. Factor the monthly instalment into your budget and ensure you repay it first before managing your other expenses.
Three alternatives to emergency personal loans
1. Assistance From Your Family
There’s no one better to ask than family if you need emergency same day cash loans. If you or a loved one is in trouble, you can always count on your family to lend a hand. There’s no need to pay any interest or processing fees for this emergency money loan as well.
2. ComCare Short-to-Medium-Term Assistance (SMTA)
This isn’t an emergency money loan, but financial assistance from the Ministry of Social and Family Development. The ComCare SMTA provides you with money for your living expenses, household bills, and healthcare. It may not be a lump sum of cash, but if you’re facing long-term unemployment, this is an excellent solution to consider.
3. ComCare Interim Assistance
Similarly, ComCare’s Interim Assistance provides households drawing a monthly income per capita below S$800 with cash and supermarket vouchers. This isn’t an emergency money loan, but it takes some pressure off your family if you’re in dire straits.
In closing
No matter what emergency life throws at you, you can always count on an urgent personal loan from various legal lenders throughout Singapore. And with Personal Loan Finder, you can easily compare the options you have available for you based on your age, income, and requirements. We can help even if you are looking to apply for a loan with bad credit.
Start searching for free with us or contact us anytime!
