We need to accept the fact that it is important for businesses to avail short term loan in Singapore to have smooth and fast business functioning. Since Singapore is one of the most promising financial hubs, so it is important for state to make financial assistance available at full speed. So for financial institutions, it is important to keep their operation process in full swing. There are various types of short term loan which are made available to the businesses and individuals looking for fast cash to cope up with some emergency needs. As the name suggests short term loans are offered for a short period of time which will not exceed the period of 5 years.
One of the most popular short term loans is pay day loan which is unsecured loan and is linked to a borrower’s payday. If you are looking for a pay day loan for buying a home or car then you are making a big mistake as short term loans are intended to meet up short term needs and not for making any big asset purchase. The loan is offered based on your income and next pay day check. Agreements of the loan clearly mention the fact that the loan need to be clear off on the decided date as agreed mutually by borrower and lender. If the payment is not made on the due date penalty will be charged and the borrower will be liable to pay the same. The major reason behind the popularity of the pay day loan is that same is made available in short span of time and without much documentation. The rate of interest will vary from one lender to other and you need to compare the same and borrow the amount from a licensed money lender only.