Do you need instant cash for emergency expenses? Are you having cash flow issues for the month, but you would not receive your salary until the end of the month?

If this is so, a 1 month loan from a licensed money lender might be able to help you.

By opting for a short-term loan for 1 month, you can get instant cash for your emergency needs and be free from debt almost immediately, and you only need to repay the loan a month later after your source of funds comes in.

What Is a 1 Month Loan?

A 1 month loan is a short-term loan that is paid back in a single instalment, one month after the borrower receives the loan.

When Is the Payment Due for a 1 Month Loan?

The payment for a 1 month loan is due exactly one month after the loan is disbursed to the borrower. So, if you receive the cash on 4th September, the full repayment will be due on 4th October.

There may be small variations in particular months, for example:

• If the loan is received on 31st January (since February only has 28 or 29 days)
• If the loan is received on 31st March (since April only has 30 days)

In such cases, the lender will specify a particular date for the repayment. You will be informed of the exact date before you sign the loan contract and receive the money.

Why Should You Opt for a 1 Month Loan?

There are several advantages to getting a short term loan for 1 month. Here are some of the main ones:

1. You only pay the interest once

Borrowers have to pay interest on any outstanding loan amount to the lenders. The total interest of the entire loan adds up every month until the debt has been fully repaid. With a 1 month personal loan, interest may only be charged for the period that the loan remains outstanding. However, the shorter duration does not automatically mean that the loan will cost less overall.

2. Suitable for emergencies

If you need a small loan amount that your next salary payment can cover, why take a bigger loan with a longer-term? Repay an urgent cash loan within a few weeks and free yourself from the debt quickly.

3. Fast approval process

As a 1 month loan involves a relatively small amount, the vetting and approval process is generally quite fast. Get the cash in your hands immediately when you need it most.

What Is the Maximum Loan Amount Eligible if You Apply for a 1 Month Loan?

Generally, an unsecured 1-month cash loan with a money lender depends on factors including your annual income and residency status. The borrowing limits apply across all licensed money lenders in Singapore, so you should also take into account any existing loans you have with other licensed lenders.

How Is the Interest on a 1 Month Loan Calculated?

Interest on licensed money lender loans, including short term loans for 1 month, is usually calculated monthly. By law, the maximum interest that a licensed money lender can charge is 4% per month.

The formula used is:

Interest = Loan Principal x Monthly Interest Rate

Here is an example of the interest on a $1,000 1-month personal loan with a 4% interest rate:

Interest = $1,000 x 4/100 = $40

Hence, the total repayment due at the end of the month will be:

$1,000 + $40 = $1,040

Are There Any Other Fees for a 1 Month Loan?

All licensed money lenders charge processing fees to cover administrative costs. This fee is capped at 10% of the loan principal.

Where Can You Get a 1 Month Loan?

You can get 1-month loans at licensed money lenders in Singapore. Banks do not offer these convenient short term loans for one month.

What Is a Monthly Money Lender?

The term monthly money lender is sometimes used by people searching for a lender that offers loans with monthly interest or repayment arrangements. It is not a separate licence or category of money lender in Singapore.

Before applying, check that the company is listed on the official Registry of Moneylenders.

You should also avoid lenders that approach you through unsolicited messages or promise urgent cash loans without proper verification—more often than not, these are unlicensed lenders or scammers looking to take advantage of unsuspecting borrowers.

Who Is Eligible to Apply for a 1 Month Loan?

Any legal resident in Singapore (citizen, permanent resident, or foreigner) who earns a salary or can prove that they earn a regular income is eligible for a 1 month personal loan with Prosper Credit.

What Are the Required Documents for a 1 Month Loan?

To apply for a short term loan for 1 month or an urgent cash loan, you will need to show proof of your identity and source of income — such as bank statements — when you apply. There are three categories of applicants and the documentation varies accordingly:

Employed Singaporeans and Permanent Residents

1. Identity Card
2. CPF contribution statements (can be retrieved with Singpass)
3. Payslips for the previous three months (if your monthly salary is more than $6,000)

Self-Employed Singaporeans and Permanent Residents

1. Identity Card
2. IRAS Notice of Assessment (NOA) (must be able to be retrieved with Singpass and 2FA) or
3. Proof of income (bank statements, commission statements, and/or any other certified income statements)

Foreigners

1. Employment pass and FIN card
2. Proof of home address (tenancy agreement, proof of billing address)
3. Payslips for the previous three months

Can Lenders Loan Money Without Payslips?

The short answer is yes, lenders may be able to loan money without payslips—but approval will depend on the lender’s requirements and whether you’re able to demonstrate your repayment capacity by other means (such as producing bank statements, commission statements or tax documents). In other words, you will need to provide alternative documents for the lender’s assessment before a loan can be granted.

Be extremely wary of anyone offering an urgent cash loan with zero checks or an instant cash loan in 1 hour without documents in Singapore. No legitimate licensed lender is allowed to loan money without payslips or any form of checks; if you are guaranteed a short term loan for 1 month or any other type of loan, walk away immediately.

What if You Can’t Pay the Urgent Cash Loan in One Month?

If you can’t repay your urgent cash loan, you need to pay late fees and interest on the overdue amount:

1. Late Interest on late payments — limited to 4% per month. Note that this is on top of the interest rate for the loan itself.
2. Late payment fee — limited to $60 for every month the payment is late

So remember to do your budgeting well, set reminders, and keep track of when you need to make payments to avoid these fees.

Do note that the total of all these charges cannot exceed the original loan amount. For example, a borrower who takes a $1,000 loan can only be charged a maximum of $1,000 in late payments and other charges.

If you have taken a 1 month personal loan but are unable to pay by the due date, please contact your money lender as soon as possible.

While this can’t be said for all money lenders, Prosper Credit may be able to help you work out a reasonable repayment plan that allows you to honour your debts and prevent damage to your credit records with the Moneylenders Credit Bureau (MLCB). Just so you know, your late repayment records might affect your future loan applications with other money lenders.

How to Apply for a 1 Month Loan

So, now you know all the basics of what a 1 month loan is and its requirements. You are ready to make your application and free yourself of your current financial burdens.

There are two ways to apply for a 1month loan with Prosper Credit.

Apply at our office

You can apply in person. We are located at:

Block 186
Toa Payoh Central
#01-420
Singapore 310186

Apply online

You can also apply online on our website anytime, anywhere.

Here’s how to submit your 1 month loan application in four easy steps:

1. Submit your details using the loan application portal on our website
2. Our friendly loan officer will contact you within an hour
3. Schedule a meeting at a convenient time to go down to our office for a face-to-face verification
4. Once you have agreed on the repayment terms, interest rates, etc, and have signed the loan contract, you will receive your loan amount in cash or via bank transfer within ten minutes.

With such a fast and convenient loan application process, you no longer need to worry about urgent cash flow issues, which can be resolved easily.

Have questions about getting urgent cash loans for your emergency needs? Contact us today!