Where To Find The Best Grab Driver Loan 2020

Rising costs of living especially in the 20th century had left people with no choice but to search for alternative incomes. This situation is especially evident in Singapore as it is ranked the most expensive city to live in for the past few years even ahead of Dubai.

Fortunately, the advancement of technology had opened up many doors of opportunities for Singaporeans to get part-time jobs that pays very well like being a Grab driver.

This job’s flexibility and the financial incentives it offers had led to a growing number of people joining Grab as part-time or even full-time drivers. A huge number of Singaporeans now even rely on Grab as their primary source of income!

Apart from that, Grab drivers are entitled to various benefits which includes various discounts of fuel and many other goods and services.

What is The Advantage of Grab?

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Grab is now the No.1 choice for Singaporeans looking for private transportation. With this, taxis have become something of the past.

According to statistics, there is now close to 1 million Grab drivers globally! Why do people, especially Singaporeans, love Grab so much?

Reduced Travel Times

Did you know that Grab users spend an average of 52% less time travelling compared to other modes of transport? Singaporeans value their time and therefore would not mind to spend a little more to get to their destination faster!

Furthermore, it is so easy to call a Grab car especially in the city! Users could enjoy the flexibility by booking a driver anytime, anywhere! This is not possible if you are taking the public transport or the MRT.

Safety Features

This is especially true among women in Singapore. The safety features offered by Grab appeals to those who simply want to get from Point A to Point B safely.

When you call for Grab, you would always know who is picking you up and your live location. This allows users to have a peace of mind when it comes to travelling at night.

The same is also true for Grab drivers. They can know exactly who are they picking up as each customer is verified by Grab.

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Reasonable Prices

Although Grab charges users based on the distance, locations and time, their fares are generally reasonable and affordable by most Singaporeans.

Furthermore, users can always see how much does it cost before making a booking! Such transparency would avoid any unexpected bills or charges to the customers. It would help customers who are on a tight budget to plan their trips carefully.

Driver Benefits

Grab takes care of its drivers like any other employers.

Firstly, Grab ensures all its drivers have medical leave insurances by sponsoring them free personal accident insurance. In other words, Grab drivers are covered financially in the event of injury or sickness.

This allows drivers to have a peace of mind if any unexpected events occur in the course of their job. Such benefits could not be obtained anywhere else!

The System for Grab Drivers in Singapore

Grab has made it fairly easy for potential Grab drivers to join the company with a simplified system.

The company launched the Grow With Grab system in 2018 to benefit all Grab drivers in Singapore. This system includes various types of financial services for Grab drivers

Grab Pay also allows users to pay for their various services virtually, enabling more customer loyalty towards their brand. Their Grab Rewards system also further increases the loyalty of their customers. Hence, it would be safe to say that Grab is here to stay.

How to Apply for Grab Driver Loan?

Similar to personal loans, Grab Driver loans does not require you to have any forms of collateral. You do not need any guarantors as well.

With this, getting a Grab Driver loan would ultimately depend on your credit history. You must have a good history of repayments and income source before you could get a Grab Driver loan.

However, if your credit history is not perfect, you could always look for one of the many licensed money lenders in Singapore as they would also offer you loans with good terms and conditions!

Read also: Insider’s Guide to borrowing from licensed money lenders

How to Apply for Grab Driver Loan from Licensed Money Lenders?

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To apply for a Grab driver loan, you must be either a citizen or a permanent resident of Singapore. If you are a foreigner, you would need a valid work permit. Nevertheless, it would be harder now for foreigners to apply for loans due to the new regulations by the Registry of Moneylenders.

All borrowers must be at least 21 years of age. You would need the following documents for a Grab Driver loan:

  • Identification card (NRIC),
  • Taxi pass
  • Vocational license,
  • >7 days job summary
  • Other supporting documents: proof of income, billing address, car rental agreement etc

Advantages of a Grab Driver Loan 2019

You could enjoy the following benefits if you apply for a Grab Driver loan from licensed money lenders:

Fast Approvals

Compared to banks, licensed money lenders do not have to go through various forms of bureaucracy to get your loan approved. Most licensed money lenders can approve your loan within the same day with some even approving in less than 15 minutes!

You do not need to fill up a pile of application forms and end up getting rejected by the banks. It would normally take only 10 minutes to complete application forms for loans from licensed money lenders.

You do not have to worry about any issues as the Moneylenders Act protects the borrowers thoroughly. This would ensure the entire application process is transparent and trusted.

Get Cash Instantly

Licensed money lenders always disburse cash when they approve your loan. This would allow you to use your money immediately. Such a stress-free experience is not possible especially when you get loans from banks.  

Low Interest Rates

The interest rates from licensed money lenders are well-regulated by the Moneylenders Act. They could not charge you rates higher than 4%.

You could even find licensed money lenders with 1% interests!

Apart from that, the fees that they can charge are also capped by the government. This would ensure that you would not get charged for any hidden fees.

Factors to Consider When Applying for Grab Driver Loan

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With more than 150 licensed money lenders in Singapore, it would be fairly hard to choose the right one. You would have to compare a few important factors before taking up a loan from any licensed money lenders. The factors are as follows.

Loan Tenure

Loan tenure is the amount of time you agree to fully pay off the loan. This could range from anywhere between a week to 18 months depending on the licensed money lender you engage with.

You would have to balance the higher interests you are going to pay for long tenures versus your ability to make the payments for short tenures.

With this, you could also choose between weekly, bi-weekly and monthly payments for your loans.

Interest Rates

Interest rates are one of the most important factors when you take up a loan. The rates from licensed money lenders could range anywhere between 1% to 4%.

It is obvious that the lower the interest rates the better. However, do take note that some licensed money lenders may attract you with low interest rates but charge you hidden fees.

To avoid this from happening, you could check out our reviews of all the licensed money lenders in Singapore!

Other Fees and Charges

According to the Registry of Moneylenders, licensed money lenders are only allowed to charge the fees as follows.

•a fee not exceeding $60 for each month of late repayment;

•a fee not exceeding 10% of the principal of the loan when a loan is granted; and

•legal costs ordered by the court for a successful claim by the moneylender for the recovery of the loan.

You could report any unlawful charges by any licensed money lenders to the Registry of Moneylenders.

Legality of Money Lender

It is important to check if the money lender is licensed or not. Engaging with unlicensed money lenders (loan sharks) would have dire consequences for both parties.

Singapore work pass holders who borrow from loan sharks would be barred from future employment once discovered.

Conclusion

Overall, Grab Driver loans are still considered personal loans. Therefore, you would have to balance all these factors to determine if the loan is worth it for you.

If you do not have the time to do your research, you could always check the summary of all the licensed money lenders in Singapore at LoanGuide.sg.

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With this, we wish all Grab drivers a pleasant experience while getting your loans!

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