If you’re in dire financial crisis and have not enough cash to meet your everyday expenses like rent, food and utilities or manage unexpected expenses such as huge repairing bill, medical bill of any of your family members or any other financial emergency, personal loans comes in handy.

By: Hitesh Khan/

Most of us have had times in our life when we direly needed extra cash on hand to manage unexpected expenses, like a repair bill or a medical bill. While having a short term savings account is ideal, sometimes expenses pile up for even the best prepared among us, or there simply aren’t the funds available to create a savings account.

If faced with a bill you cannot pay and are in a dire financial crisis, you may want to speak with the creditor about making reasonable payments. Many creditors will work with customers and clients if you simply do not have the money, and this can alleviate your dire financial crisis without borrowing money.

What are your options when you are in a dire financial crisis and have very little cash in hand?

If you have savings, you may be able to cover unexpected expenses this way. Draining your savings account to cover an emergency is frustrating, but nonetheless better than many of the alternatives.

If you have credit cards available, or a family member to borrow from, using these options can help you deal with a need for urgent cash. While credit card cash advances are typically expensive, they are less expensive than taking personal loans from licensed money lenders.

If your credit is good, you may be able to quickly obtain a credit card or a personal loan from your bank or credit card with enough speed to meet your needs. This is often the most affordable way to solve your money problems when you are in a dire financial crisis.

Emergency personal loans are available from a variety of lenders. While all such loans will come with high interest rates, some may be more affordable than others. It is critical that you carefully read all loan terms, including interest rates, prepayment penalties and more.

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Some reputable banks, offer emergency personal loans to those in dire financial crisis with some amount of established credit or a willing guarantor. These loans are typically quite stable and have moderate interest rates, depending upon the borrower’s credit rating.

In the event that you are standing as a surety for personal loans, you should look out for the following to ensure that:

  • You understand your responsibilities as a surety;
  • You receive a copy of the Note of Contract at the time that the loan is granted to the borrower;
  • The lender has explained the terms in the Note of Contract in a language that you understand; and
  • The lender does not keep your NRIC card or any other personal ID documents (e.g.driver’s licence, passport).
  • The lender does not acquire any information that contains passwords to your user accounts (e.g. Singpass account, Internet banking account, email account).

Finally, when all other options are exhausted, there are payday loans, also called cash advance loans. You may well have heard news stories or other information about payday lenders and their unethical lending practices. The reality is that the news stories are true. Payday loans come with high interest rates. If you have no alternative, borrow only what you can afford to pay back with your next salary, and make this the absolute last resort.

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You are encouraged to contact your lender as soon as possible if you are unable to repay your loan on the scheduled repayment date. Your lender will set its own late payment fees in accordance with the existing regulations, and your lender has several courses of action available to them if your payment is late.

Your lender may also charge you late fees as well as fees for non-sufficient funds. Please review your loan agreement carefully for information about the financial implications of non-payment before you provide you sign on the dotted line for personal loans.

The majority of licensed money lenders  will not threaten criminal charges or sue borrowers; they will generally offer debt settlements over time instead. In Singapore, the Moneylenders (Amendment) Bill protects consumers from being abused or harassed by debt collectors.

Some of the lenders may automatically renew your loan if it becomes past due. You should check your loan agreement for your lender’s policy on automatic loan renewal. If your loan is renewed, there will be additional charges as determined by your lender. Your lender may offer you other options in addition to renewal, including the ability to repay your loan in full at a later date or repay your loan over time in a series of installments.

How to Secure Personal Loans Quickly

If you are in a financial crunch and are searching for personal loans to expand your business, the loan consultants at iCompareLoan can set you up on a path that can get you a it in a quick and seamless manner. Our loan consultants have close links with the best lenders in town and can help you compare various loans and settle for a package that best suits your needs. Find out money saving tips here.

Our Affordability Tools help you make better property buying decisions. iCompareLoan Calculators help you ascertain the fair value of a property and find properties below market value in Singapore.

If you are looking for a new home loan or to refinance, our Mortgage brokers can help you get everything right from calculating mortgage repayment, comparing interest rates all through to securing the best home loans in Singapore. And the good thing is that all our services are free of charge. So it’s all worth it to secure a loan through us for your business expansion needs.

Contact us for advice on a new home loan.

Contact us for home loan or refinancing advice.

Byravi