I have recently read that there are also personal loan in Singapore. I though cash loans were only popular in the United States and UK. Little did I know that personal loans are also gaining a lot of followers in Singapore? It seems like the poor economic conditions of families are common all over the world. However, are the personal loans really assisting people or is it the other way around.
From what I know of the payday loans they earn very high interests and have a short term of payment which is usually on the next payday. Are these lenders taking advantage of the misery of people who need immediate cash and lure them with easy online application process and quick cash? There are a rising number of online lenders and they seem to profit from the misfortune of other individuals but come to think of it, these people who have very low credit scores cannot avail of bank loans and these personal loans are their only alternative.
The lenders who provide the personal loans do not often ask for any security or co-signors and they base their approval of the loans on the capacity of the borrower to pay. The risks involved in the process might be the reason for the high interests. However, in spite of the risks online lenders are visibly increasing and not only in Singapore but other countries as well. This is a reflection of the kind of economy we have when people have to resort to personal loans to pay utility bills and emergency expenses.
