The year 2020 is truly a challenging and one of the difficult times not only in Singapore but all around the world. COVID-19 has affected every industry, especially in the service sector.
One of those that were highly hit where the point to point taxi driver or GrabTaxi drivers, Comfort Taxi drivers, and other private-hire car drivers.
So, if you’re one of the taxi drivers, you might be asking if getting a personal loan can be a good idea in these tough times.
Is it Really a Good Idea To Take a Comfort Taxi or Grab Personal Loan?
Even up to now Singapore taxi drivers are still suffering amid there’s an easing of COVID-19 restrictions. Also, it was reported earlier that ComfortDelGro which is one of the taxi giants had suffered S$6 million losses which is massive destruction caused by COVID-19.
Although the government has previously allowed taxi and private car drivers to make home deliveries to meet the increasing demand, still they are suffering and having a lesser income.
Taxi and private-hire car drivers are still struggling on how to make both ends meet since the demand for rides is still low due to lack of tourists, temporary closure of entertainment venues such as nightclubs and many are still working from home.
A taxi driver interviewed by Straitstimes said that before he can make around 13-14 trips daily when he drove around 7 am to 3 pm but with the pandemic, he is struggling to get 10 trips daily even though he’s taking some extra hours. This makes him earn just $120 a day now instead of $200 – which he earns before.
The sad thing is that the expenses are still the same. In general, below are the average daily expenses a taxi driver need to pay:
- Taxi Rental – Average rental rate may cost from S$75 to S$100.
- Petrol Cost – About $S30 to $S50.
Although there are waivers and subsidies, the recent report shows that Taxi drivers need additional funds to support their daily expenses. And the existence of personal loans for taxi drivers offered by licensed moneylenders is of great help.
In these trying times while the economy is still recovering, getting a Comfort Taxi or GrabTaxi personal loan can help you make both ends meet.
So, if you are either a GrabTaxi or Comfort Taxi driver, this post is dedicated to you. Let’s enlighten you on what are the advantage of taking a personal loan for taxi drivers in Singapore.
The Benefits of Applying for Comfort Taxi or Grab Personal Loan in Singapore
In these difficult times, taking a personal loan is an advantage and there are many benefits that you can get by from licensed moneylenders.
One of the benefits, when you have decided to take a personal loan for taxi drivers from licensed moneylenders, is that they have less stringent requirements. ln general, to be eligible you just need to be at least 21 years old and must prepare for the following:
- Proof of Identity such as your NRIC.
- Proof Income such as your payslip.
Your proof of income is important since some of the lenders may base the total amount of your loan on your income. There are also some money lenders that will just need your tax license or Grab statements to apply for a personal loan.
Applying for a Comfort or Grab personal loan from licensed moneylenders is an advantage since they are known for a faster rate of approval.
There are lenders that will just need a few minutes to approve your loan as long as your requirements are complete. You simply have a less waiting time when it comes to approval.
Easily Address Your Financial Problem
By applying for a personal loan in Singapore, if you are GrabTaxi or Comfort Taxi Driver, it can help you tide your current expenses.
We know, how hard it is for you to finance your expenses in these trying times. With a faster rate of approval, the money that you can get from a personal loan can help to finance your taxi rental and petrol costs.
No Collateral Needed
GrabTaxi driver or Comfort Taxi Driver loans are unsecured. So, what it means? In simple terms, you don’t need any collateral to apply for a personal loan for taxi drivers in Singapore. Instead, borrowers usually approve your loan based on your creditworthiness (credit score) and annual income.
But, if you’ve got a poor credit score, don’t worry there are still moneylenders that can help you. They will just need to check your current financial status and your ability to repay.
If it’s your first time to borrow, you may start with a low amount and pay it accordingly, so you can start earning a good credit score.
You may also read: How do you improve your credit score.
Tailor-made Repayment Schedule
The good thing about Grab personal loans or loans for taxi drivers is that the repayment schedules are based on your type of work and your current financial situation. Thus, they will provide you with a much flexible repayment schedule.
Can Be Used for Other Purposes
A personal loan is not only essential for your daily expenses it can be also used for other purposes. Commonly, it can be used for the following:
- Emergencies. It can be used for unexpected events in our lives such as paying for medical emergencies.
- Enrolling Online or Upgrading Your Skills. If you plan to shift your career and want to work from home and to be trained, a personal loan can be a good start to finance your skill upgrade. By learning other skills, you can find ways on how you can increase your income while being a GrabTaxi or Comfort Taxi earnings are still low because of the outbreak.
- Paying Other Bills. In these tough times, you may be also having a hard time paying for other expenses because your earnings were greatly affected by the pandemic. Getting a personal loan can be helpful to pay other bills especially those need to be paid immediately.
You may also read the Top 8 Reasons to Get a Personal Loan in Singapore.
How to Get the Best Personal Loan for Taxi Drivers in Singapore?
Check for the Lowest Interest Rates
Interest rates can affect the total amount that you need to pay. Therefore it is essential that you have to find a personal loan that has the lowest interest rate.
For licensed moneylenders, they are only allowed to charge interest rates not more than 4% per month. Beware from borrowing from illegal lenders or loan sharks. They will usually offer interest rates above 4% per month.
Look out for the Fees and Charges
Among the key consideration when taking a Grab personal loan or a Comfort Taxi driver loan are the fees and charges. Make sure that the lender discussed clearly all the fees and charges.
Licensed moneylenders are only allowed to have an administrative fee of not more than 10%. Also when it comes to late interest, it must not go beyond 4% each month of late repayment and they can only charge a late fee of not more than S$60.
If there are fees and charges that can’t be explained or a much higher one, then you might be dealing with an illegal lender.
Also, if you are planning to take a Grab loan or a Comfort Taxi Driver personal loan from a licensed money lender please read the notes to borrowers in Singapore.
You may also check out how to differentiate a licensed moneylender from a loan shark.
Flexible Loan Tenure
In terms of choosing the loan tenure, the general rule is that if you take a shorter tenure, you will have a higher monthly repayment. If you choose a longer one, you’ll end up paying lesser monthly repayment but you’ll have higher interest to repay and the total amount of your repayment is much higher.
Choose a loan repayment based on your capacity to repay. You may either choose to pay it weekly, bi-weekly, during your payday, or monthly
You may also read The Ultimate Guide in Finding Personal Loan with the Best Interest Rates in Singapore (2020)!
How can you borrow with a Personal Loan for Taxi Drivers?
If you’ve got decided either to apply for Comfort Taxi Loan or Grab Taxi Personal loan in Singapore, but before applying, you must also know the maximum amount that you can borrow.
Please take in mind that when licensed moneylenders decide on how much you can borrow it will depend on the following factors:
To provide the maximum loan amount, banks and licensed money lenders usually check the annual income. This will also mean that the higher the annual income you have the higher the maximum loan amount they can give.
If you are earning about S$20,000 or above annually, you can get up to 6 times your monthly income. If a taxi driver is earning an average of S$2,619 monthly, it will turn out that he is earning about S$31,428 annually. And since this above S$20,000, he can borrow up to S$15,714.
To be a smart borrower, it’s important not to immediately take the highest offer. You must base the amount to borrow based on the total amount you need and your capacity to pay. Your capacity to pay is vital here since failure to pay on time means that you need to pay for late interest and late fees. So, you will end up paying more.
Another key element that financial institution considers when providing you with the amount that you can borrow is your credit score. We all know that if you are a responsible borrower, you’ll end up having a higher credit score. However, on the other side, if you have delayed repayment, your credit score decreases.
The higher your credit score is or by maintaining a good credit score, you have the higher chances of borrowing for a higher loan amount. Banks usually consider credit score as a deciding factor, however, licensed moneylenders usually have less focus on this. This is why you can read or hear that they tend to extend help even with those bad credit scores or no credit history at all.
Are You Ready To Take A Comfort Taxi or Grab Personal Loan in Singapore?
Personal loans can be beneficial while we are recovering from these tough times. It can help us make both ends meet. If you’re ready to take a personal loan for taxi drivers in Singapore, we can help you.
You may start finding the perfect Comfort Loan or GrabTaxi Personal loan by using our loan matching platform. Find the right match for a personal loan today!