Grab, the mobile phone application where anyone can book a ride to and from anywhere in Singapore, has become a part of many residents’ lives. And those who want to be one of its riders but don’t have the capital can apply for a Grab loan from a registered money lender.
This is offered to all eligible Grab drivers and delivery partners who are Singaporean citizens and permanent residents aged 21 years old and above.
However, taking out this loan product is more than just completing the requirements. It is a responsibility that you will need to add to your already long list of obligations as a working Game Icon member of society. So before applying, here are a few factors you should consider.
Loan Qualifications
This type of loan caters to a specific type of borrower. Are you a Grab driver or a Grab delivery partner? Based on the Grab website, their cash loan program is available only to selected drivers and delivery partners. These individuals were selected based on their historical earnings and driving pattern. It would be best to check with Grab’s customer service if these are the latest qualifications and if there are additional things you have to comply with.
Unfortunately, if you do not have the qualifications mentioned, you might have to explore other loan options. If you are a Grab Driver, you will also need at least 12 weeks worth of earning statements. So, make sure you have these documents on file before applying for this cash loan.
Interest Rate and Fees
As with all types of loans, be prepared to pay not only for the amount you are borrowing but also for the interest and other fees. This can make your loan obligation harder to comply with. You will have to set aside the amount for your loan and your regular interest payment.
One good thing about Grab Loan is that it currently does not have administrative fees, so you just need to watch out for the interest rate. Of course, this information might change from time to time and it would be best to research and stay updated before applying for a Grab Loan.
For Grab Loan, interest varies depending on your profile, the amount of loan you are applying for and the terms of your loan. Keep this in mind before taking the leap. It would be best to plan out your ideal repayment structure. Research what would be a reasonable interest rate based on the amount you are planning to borrow and for how long you are planning for the repayment of your loan. These information will be useful in evaluating whether or not the Grab Loan terms would work for you. This will also help you decide on whether this is the best solution for your cash problem.
Be Ready For Repayment
One of the mistakes that borrowers often commit is that they do not plan ahead about how they will repay their loan obligation. After anxiety-filled days and sleepless nights due to unpaid bills or unfulfilled financial obligations, receiving your loan proceeds can feel like solving all your money problems. Beware of treating these funds as free money. Be disciplined enough not to splurge on wants and unnecessary expenses.
In order to focus on your goal, you should have planned ahead. A simple first step would be your income vis-a-vis a list of your expenses, both fixed expenses and regular expenses with varying amounts. Set aside a section for possible emergency expenses. From here, you will have a realistic view of how much you are capable of paying. Whatever amount you borrow from Grab would be an addition to your current expenses. Perhaps after this exercise you might also consider finding other streams of income to provide you with a more permanent solution to cashflow problems.
Decide Carefully Before Applying for a Grab Loan
Similar to other loans, applying for a Grab Loan should be taken as a serious decision. Even if it’s just a small loan amount, it would still be an additional obligation. Remember to use loans strategically. Research for other options that can help with your financial problems. Familiarize yourself with other loan products. If in the end you decide that a Grab Loan is the best choice for you, learn about the features of this loan and come up with a reasonable repayment plan.
