It is everyone’s hope to have some fund in place to cater for emergencies least they happen. But  with the emergence of many  licensed moneylenders in Singapore, who offer borrowers short term loans to cater for theirshort-term financial obligations, one should  not be worried in the event that they do not have an emergency fund in place.

What is an Emergency Fund?

This refer to a sum of money set aside to cater for incidents that may take place such as accidents, abrupt loss of jobs  or even a sudden injury.  It is equally important to have such money kept aside to cater for a rainy day. Its also important because it gives one confidence that in case of any issue taking place, that person will be at peace knowing that they can only  rush to the bank, withdraw and  close on the huddles in place. As such, one does not have to turn into loans for financial assistance.

But on the other hand, if you are confused over going for  that emergency fund or  getting a cash loan, read on  and  make an informed decision.

  1. Evaluate if the Loan is an Emergency

The first assessment to make is to ask yourself whether the loan you intend to take is an emergency. Let’s take an example where,  your house caught fire   and most of the walls fell down. In such a case,  taking a renovation loan can be treated as an emergency  and worth considering taking  a cash loan in Singapore.

But  in the event that you need a  personal car to be  driving you to work, this  may not be treated as an emergency and it  is not  worth applying for a cash loan in Singapore. Remember, the car will need other maintenance costs which will eat into your income and  you could use other means to get to work.

  1. Confirm How Much You Will Lose  on Taking a Cash Loan

E When people decide to put some money aside as an emergency fund, they do so by putting them in a fixed deposit account or   in a salary savings account. There are several terms and conditions that that are attached to such savings. For instance, for you to earn interest, you got to wait till  the maturity of the deposit if you want to earn the interest attached to it. This makes it hard to access this money and you can evaluate the  extent  on the amount you would loose in the event that  you break the contract. In any case that the amount is negligible, then you can consider forfeiting the interest and using it for your emergencies. If the reverse is true, then it is worth taking a cash loan in Singapore. Remember licensed money lenders offer these loans within a short time and on the same note, the interest, repayment schedule is always something you can negotiate with the moneylender in   question.

If we take an example of  Online Credit, it is one of the reputable moneylenders in Singapore that will offer fast, efficient and  customer tailored    loans . Besides, it is a licensed moneylender that has fulfilled all the government regulations and  the borrower does not need to worry that it may be a scam company.

  1. The Domino Effect

If you are the kind of a person that will rush for your emergency fund every time an emergency occurs , then it may not make sense to have it in the first place.  It will even affect the holder psychologically with a sense that they do not have discipline for their funds. To avoid all this mockery, going for a quick cash loan in Singapore would be a better idea, as it will build a culture of making the repayments faithfully.

  1. How Disciplined are You?

You also need to evaluate the level of discipline you have in matters of taking loans. Its imperative to know that a loan is not a  leisure activity and it demands discipline,   honoring of your loan repayment obligations  despite your financial crisis.

This can only be done through practical learning. Its all about taking a loan and repaying it as you build  self-discipline and  build your credit   rating as well.

Its important to know that if you decide to dip on your emergency fund, then this is a possible lack of discipline in  financial management and may  lead to messing up your future financial discipline in terms of savings. The domino effect is compromised.

Why Singaporeans opt to Use their Emergency Funds

There are several reasons why people in Singapore choose t use their emergency funds  compared to the  Cash Loans in Singapore. Some of these reasons include;

  • The fund does not have interest- The fact that it is your own money, it does not carry interest with it and as such, one may opt to forfeit any interest the fund may earn in relation to what they could pay out as the loan interest.
  • It is instant- If you compare the time taken to make a decision and apply for cash loan, one would opt to withdraw their  emergency funds.
  • No checking on the credit Scores– When using your funds, nobody will care about checking  your credit scores. This might be a challenge  when making a loan application.
  • Used when it is absolutely necessary–  Buying a dress to match that expensive bag is absolutely negligible. Ask yourself, how important is this expense. If you  live without it,  avoid using your savings  for a how off.

Is it important to build your Emergency Fund?

It is absolutely necessary to have an emergency fund in place. But you need a plan of events in building the same. This is how you can build an emergency fund that will  support you in times of emergency and avoid getting cash loans in Singapore if you don’t need.

  • Have a budget in place
  • Be open to other sources of income
  • Always separate your normal savings account from your emergency fund account.


It can be the best decision to get a cash loan in Singapore  as you save on your emergency funds. Working with the right licensed money lender in Singapore will offer you the best quick cash loan in Singapore and at  Online credit, we will carry out the assessment and approve your loan application within minutes.

Your credit rating should not be a challenge to you. We will support you when yours is bad as opposed to the traditional banks who will not even think about your need.

Make that decision and apply for a cash loan with us at Online Credit.