It is a fact that when you have a big project to realize like building a house or maybe purchasing a new car or any other asset, you need a great deal of money. Acquiring such amounts through savings takes a lot of time due to the economy, income or other factors. That’s where cash loan comes into play in order to help you realize your various projects or take care of unforeseen emergencies.
Cash loan: What is it?
Like the name implies, cash loan is money borrowed from a person or an institution such as a bank in order to deal with emergencies or expenses, which you’re to pay in a predetermined period of time. The terms of the loan depend on the lender, be it the length of the period of payment, the scheduled dates of payment, or the interest rate on the loan. In some cases, the person or institution might request a guarantee in other to make sure you will be able to repay them. It could be a house ownership documents (in case you have your own house) or a pay slip proving that you have a regular income from a job that could help you pay up. To find out more details about these terms, cash loans in Singapore.
Why is there an interest on the loan?
The lender gives you access to the amount of money you’ve agreed on at once and gives you the possibility to pay up over the course of a few weeks, months or years. For this service you’ve been granted, the lender demands an interest on the money loaned in order to make some profit after the borrower pays up. The percentage of interest is also determined by the lender. In most institutions, there is a fixed percentage to be paid, but when it’s from a particular person, negotiations can sometimes be made in order not to pay a high rate of interest when reimbursing the loan.