The private hiring industry is brimming with many Grab drivers who may be in need of loans to help them with their immediate expenses. Many Grab drivers are self employed or freelancers who do not have the stable monthly income most people in Singapore do. Only a few Grab drivers are part timers who have a full time job with fixed monthly income. The financial challenges faced every day include the petrol or diesel costs, car maintenance and even food (which Grab drivers have to spend on as they are often out of their homes). So it is noteworthy that Grab drivers need loans to get through their daily living with expenditure to foot.
To consider getting the financial help, Grab drivers can obtain the private hirer loan from financial institutions in Singapore, with the bulk of it from licensed moneylenders. This private hirer loan, commonly called the GrabTaxi Driver loan, is an unsecured loan. But there are some pointers you have to take note of when you, as a Grab driver, is trying to get the private hirer loan.
The loan from the licensed moneylenders depends on a few factors such as your credit worthiness and credit history. You need proof to show that you are able to make repayments on the loan on time should you take it up.
As the licensed moneylenders disburse cash loans, they are required to know your credit score in a report. According to the laws of Singapore, the total amount you can borrow to service your Grab driver expenses depends on you total annual income. There is some eligibility to fulfill before you can apply for the private hirer loan.
In order to get the loan approved, the Grab drivers must
- Be a Singapore citizen or a permanent resident. If you are a foreigner, you must have a valid permit.
- Be at least 21 years of age.
- Vocational license / taxi licence
- 7 days job summary as minimum duration
- Car rental agreement / proof of income
- Driver license
Getting a private hirer loan has some benefits if you apply from a licensed moneylender in Singapore. As compared to banks, licensed moneylenders often disburse loans in faster and more convenient manner with smoother processing of loan application and faster approval. Under regulations by MAS, the application is fair and honest so that you still have the ability to repay.
Another thing you have to consider is the interest rates. Though licensed moneylenders disburse private hirer loans for Grab drivers with lower interest rates than the banks, you have to ensure you can make the required payments timely. This is dependent on the amount of loan principal amount you take. The interest rates must not exceed 4% monthly.
Loan processing is done instantly. But a licensed moneylending platform called LoanHere can process the loan application even faster by giving you 3 quotations right away once you fill in your needs for the private hirer loan. All the laws are governed by the Moneylenders Act. Read more about it here - https://sso.agc.gov.sg/Act/MA2008