When a financial emergency hit, there are several possible channels of borrowing. First, you could ask family or friends to help you out. Secondly, there are conventional banks with their rigorous requirements and lengthy approval procedures. Finally, there are modern ways of lending that work online. In many cases, personal loan Singapore is the wisest choice. Here is why.

Higher chances of a ‘yes’

If your past relationship with credit has been tarnished by delayed payments or defaults, you are unlikely to be welcomed by banks. Personal credit providers, on the other hand, may still be willing to give you a chance. 

Secondly, no collateral is required. This means you do not have to risk losing your property if financial disasters prevent you from repaying the debt on time.  Banks, for instance, may confiscate your home or car without a trial if these serve as collateral for a loan. 

Naturally, this leniency should not be abused.  Even though the credit threshold is lower, you must take your obligations seriously and follow the agreement to the letter. 

Coping with emergency costs

Disasters in life are unpredictable. Injuries, redundancies or death in the family may not be foreseen, and they require additional expenses. 

Better than asking friends

Borrowing from friends or family may cause your personal relationships to sour. In this regard, a financial institution is impersonal, so it surely looks like a more desirable source. Even if you fulfill your obligations perfectly, you avoid the embarrassment of asking people for money.

Preferable to payday loans

Applicants who fail to meet bank criteria may resort to unconventional lending, the most predatory yet accessible form of which is the payday loan. These short-term arrangements may be used to fix monetary shortages, but their price is often outrageous. 

Speed and convenience

The whole process, from submitting the request to the signing of the agreement, may be handled via the internet. Moreover, it takes such modern lenders less time to assess your application and give their verdict. Typically, the money could land in your account on the next working day. 


While bank loans must be used for an agreed purpose only (say, purchasing a vehicle), these alternative financial products fit a wide range of goals. You may decide to remodel your apartment, pay medical bills or buy a honeymoon package tour. 

Clear conditions

From the interest to the term to the payment method, all the details of your arrangement are specified in black and white. Be sure to study the contract thoroughly before signing the dotted line.

Prepayment option

Finally, it is always possible to reduce the cost of borrowing by repaying faster. This may bring special fees, but the total expenses you incur will be lower. The longer you wait — the higher the eventual price. 

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