The Importance of an Emergency Fund - And When a Loan Helps

Singapore, for all its glamour, is unfortunately quite an expensive place, in which unforeseen external events outside of our direct control could have a consistent negative effect on our long-term monetary perspectives. The truth is, we are all just one small event away from dealing with a situation that will push our financial resilience to its limit. Living in Singapore can be fulfilling. However, the high living costs, the struggle in finding well-paying jobs and the lack of resources in case you are faced with unemployment can all bear their mark on your financial stability and test your monetary fortitude.

Why is it important to have a comprehensive emergency fund in Singapore? Well, it’s that old saying “Expect the best, prepare for the worst.” An unexpected situation that comes bundled with unforeseen expenses could very quickly strain your finances and make you struggle to pay for your daily necessities. An emergency fund can be a way to cover emergency expenses, help you avoid falling into debt, and give you the necessary monetary resources for maintaining your financial stability.

Do you earn around S$5,000 per month? If so, if you manage to save up 10% of your monthly salary every two months, by the end of the year you will have saved up around S$3,000, which should last you for at least a month if faced with a situation that made you lose your job. But not everybody can afford to save up a portion of their salary. So, in a situation in which you need fast cash with no questions asked, one solution would be to utilize our professional services.

you can borrow via unsecured loans. And these limitations are mostly related to your total credit limit, and annual wage. Do you earn less than S$10,000 per year? In that case, per the MAS regulations, you are only permitted to borrow up to S$3,000. Do you earn more than S$20,000? In such a case, you can borrow up to six times your monthly income.

Your credit limit, however, across all credit facilities, cannot exceed twelve times your monthly wage. Do you want to borrow more than this, but you are also worried about maintaining financial stability? In such a case, you will need to guarantee your loan application with collateral, which can be anything from land bonds to art pieces or personal vehicles. Are you trying to raise money for the expansion of your business venture? If so, you could benefit from our firm’s business loans.

Unlike personal loans, these types of credit facilities are utilized strictly for business-related needs, and the debtor is the business entity itself, not the individual borrower. The sums involved are typically higher than what’s the case with unsecured loans and the interest rates, since the credits are usually of the secured variety, will be lower. As for documents, our team will require a copy of your ACRA business profile, your firm’s latest payslips, a recent profit and loss statement, and, of course, your shareholders’ NOAs and reports from the CBS.