In the lending arena, salary loans are practical choices for employees. They have variable amounts and offered on regular basis. Some people think that payday loans are better than salary loans, but this is not always the case. It’s true that you can get a payday loan within a few hours and the approval rate is high, but you need to suffer the high-interest rate and weekly repayment terms.
Tolerable Interest Rates
Salary loans have better interest rates than payday loans. If you pay your dues on time, you only need to shell out 5-10% monthly interest. This is a common rate, though some lenders change the percent according to their needs. Payday loans, on the other hand, have a weekly interest that can reach as high as 60%. If you can’t pay back properly, you need to cover stressful penalty fees and other charges.
Due to high interest and suspicious processing, payday loans had a bad rap in the past years. Many payday lenders charged their borrowers with monumental fees, leaving most of them trapped. With properly regulated salary loans, you don’t have to worry about predatory lending. Salary loans have positive feedback and recommendations from many financial experts. You can use these recommendations to find a licensed money lender in Singapore who offer payday loans with the best deals. If you want to take the safest route, you should get the salary loans offered by banks.
Better Lender Support
Lenders, particularly banks, have great support for salary loans. Occasionally, you’d encounter salary loan lenders who offer privileges along with their loan options. These privileges can be discounts, interest leeway, freebies, perks, rebates, and other useful bonuses. Banks are even adding more support options in order to attract more borrowers far and wide. Payday loan lenders don’t have frequent support. They just offer the loans to borrowers and go about their business. But things are changing now – some online licensed money lenders in Singapore are offering new options for their borrowers.
The best salary loan is the one that combines all three reasons or can even go beyond. While there are hundreds of salary loan lenders today, only few can really give the best deals. So, keep your choices open. Better yet, simply create a small list of salary loan lenders and take your pick from there.