From personal loans to credit lines and cash advances, there are many ways to get money quickly to meet urgent expenses. However, when it comes to an emergency where speed is of the utmost importance, there is no better option than an instant loan from a legalised money lender in Singapore.
Learn more about what an instant loan is, why you can get it so quickly, and how you can apply for one.
What is an instant loan, and are they really instant?
An instant loan is a type of unsecured personal loan that you may freely use to meet any expense. It is offered only by licensed moneylenders in Singapore, and is governed by prevailing rules and regulations that limit how much interest and fees a moneylender may charge.
Are instant loans really instant, or are they just a marketing gimmick? The simple answer is, yes, instant loans are nearly instant!
For example, licensed moneylenders are able to process and disburse your instant loan in as little as 20 minutes from start to finish. You can’t get any more “instant” than that!
Why can licensed moneylenders provide loans much faster than banks?
That’s a great question! Banks in Singapore have to carry out several checks – including credit score and history, as well as an applicant’s borrowing limit on unsecured credit – when evaluating loan applications. There are also typically several layers of approval required when processing the loan.
In contrast, licensed moneylenders may not need to check your credit score. Their priorities lie in checking whether you have other outstanding moneylender loans that count towards your borrowing limit, and whether you have a consistent source of income. There are also fewer approvals involved in your loan.
Due to these regulatory differences, licensed moneylenders can evaluate your loan application much quicker than banks.
By utilising online loan application forms and facilitating disbursement through methods like PayNow or bank transfers, licensed moneylenders are able to process your loan quickly. However, it’s important to note that face-to-face verification is still required before the loan can be granted, ensuring a thorough and compliant process.
In essence, it’s fast, simple, and even safe to borrow from licensed moneylenders; the moneylending industry is well-regulated to protect borrowers.
How much can I borrow in an instant loan from a licensed moneylender in Singapore?
Thus far, instant loans seem to be the ideal solution for borrowers who are urgently in need of extra funds. But how much can you borrow in an instant loan?
Well, unlike payday loans which allow you to borrow only up to one month of your salary each time, instant loans have a higher borrowing limit.
Here’s how much you can borrow via an instant loan.
| Annual income | Maximum loan amount |
| Less than S$10,000 | Singaporeans and PRs: S$3,000
Foreigners residing in Singapore: S$500 |
| S$10,000 or more, but less than S$20,000 | All borrowers: S$3,000 |
| S$20,000 or more | All borrowers: 6x monthly income |
Note that the actual loan amount offered to you is up to the moneylender’s discretion, and will be impacted by any other moneylender loans that are still outstanding.
If you are unable to get the loan amount you are aiming for, speak with your licensed moneylender to find out what the reasons may be, and how you can rectify the situation.
Pros and cons of instant loans
| Pros | Cons |
| A quick way to get a loan legally in Singapore | High interest rates |
| Can qualify even with bad credit history | Short loan tenure |
Pros of instant loans
Simply put, an instant loan is one of the fastest ways to get a legal loan in Singapore, which makes them an unparalleled option when faced with an emergency. Of course, instant loans are also suitable for borrowers with less urgent needs, and being able to get your money sooner rather than later is always more convenient.
Because instant loans are offered by licensed moneylenders, you needn’t worry if you have a less-than-perfect credit score. Like all moneylender loans, you will be able to qualify as long as you can prove your ability to repay your loan.
Instant loans are also convenient and hassle-free. You can easily and quickly apply for an instant loan through a simple 3-step process. Simply submit the online form, confirm your application, and upon successful verification through a face-to-face meeting, you can receive your funds in cash or via PayNow.
Cons of instant loans
There are two main drawbacks to instant loans.
Firstly, the interest charged on such loans is high because licensed moneylenders are allowed to charge up to 4% per month interest. This high interest rate is justified due to the elevated risk they undertake when providing loans. By lending to individuals with varying credit histories and financial situations, moneylenders face a higher probability of defaults or non-repayment. To compensate for this increased risk, higher interest rates are imposed to ensure the sustainability of their lending operations. Also, there’s a one-time admin fee charged on the loan at up to 10% of the sum borrowed.
(Those aren’t the only fees and charges. Late payment will incur a S$60 late fee and late interest of up to 4% per month on the overdue amount. You will also be on the hook for any court-approved legal costs incurred by the moneylender in the process of recovering an errant loan.)
Secondly, you may find that instant loans tend to have a shorter loan tenure compared to, say, a bank personal loan. A shorter loan tenure means there are fewer months to pay back your loan. This, in turn, means that the amount you have to pay each month could be quite high, especially if you borrow a large amount.
Because of this, you may have to lower your instant loan amount to match your ability to meet the monthly repayments.
Get your instant loan in 20 minutes with Synergy Credit
Synergy Credit is your number 1 choice for instant loans. Our simple, 3-step process allows you to receive your loan in as little as 20 minutes. What’s more, we offer low simple interest rates starting from 2.27% per month, and flexible loan tenures of up to 12 months. Contact our friendly loan consultants to find out more today!
