What Every First-Time Taxi Driver Should Know About Grab Loan

GrabTaxi has changed the dynamics of public transportation in Singapore that it has become a lucrative part-time job.

One person even reportedly earned more than $12,000 in just five weeks of being a private-hire driver, so it’s possible to earn more or less the same amount if you sign up as a GrabTaxi driver.

If you’re looking for loans designed for those who work for GrabTaxi, Singapore has several licensed money lenders where you can apply for a hassle-free personal Grab Taxi loan. You can even get the money in as fast as 30 minutes with complete documents.

 

Bugis Credit Application for Grab Taxi Loan

How Can You Apply for a Grab Taxi Driver Loan?

Licensed money lenders in Singapore are the best option for GrabTaxi drivers, especially for those without credit histories. Banks will require you to have at least 12 months of payment history to determine your creditworthiness.

You don’t have to worry about having no credit score if you submit the following documents to a licensed moneylender: NRIC card, taxi driver’s vocational license (TDVL), taxi pass, at least seven days of job summaries, car rental contract, proof of income (e.g. driver commissions and salaries), proof of billing address and your income for 2019.

 

 

Bugis Credit How Does GrabTaxi Work

How Does GrabTaxi Work?

Once you get the money, the next thing to do involves being aware of GrabTaxi’s system. Current taxi drivers can still sign up for the system even if they are under contract with an existing fleet operator.

The Land Transportation Authority allows Grab to operate as a third-party taxi booking app in Singapore, so there should be no problem if you work as a part-time GrabTaxi driver.

Interested parties should also apply for a TDVL, which will be handy in case you decide to switch from GrabTaxi to a private-hire driver. You can apply for a TDVL when you are at least 30 years old with a valid Class 3 or 3A driver’s license for 12 months in Singapore.

Those who don’t meet the age requirement will have to apply for a private-hire car driver’s vocational license (PDVL), which will require them to have valid Class 3, 3A, 3C, or 3CA driver’s license for two years up to the time of application.

The course fee for a TDVL costs $294.25. You can use your SkillsFuture credits to pay up to $240.75 of the price. The course will have two sessions of eight hours each for two days.

You need to pass three one-hour exams that will test your knowledge on service quality, health and safety; taxi and private hire car rules and regulations; and route planning.

PDVL courses cost $155.15 with up to $128.40 being SkillsFuture claimable. You need to attend an eight-hour session for one day and pass two exams about service quality, health and safety, and taxi and private hire car rules and regulations.

 

Bugis Credit How Much Can You Earn

How Much Can You Earn?

A private-hire or GrabTaxi driver in Singapore can earn as much as they want, although the limitless income demands a lot of your time. One person who earned more than $12,000 in five weeks had to work between 12 and 14 hours for six days each week.

Private-hire drivers can earn $30 per hour on average during peak travel hours and $25 per hour on average at off-peak hours.

Take note that the hourly rate refers to your gross earnings. The actual amount will depend after you deduct the expenses from fuel, parking fees, electronic road pricing and other miscellaneous costs.

GrabTaxi drivers should also account for the rental vehicle fees when they create a target income figure. Taxi operators in Singapore charge from $75 to $105 per day on average for renting out their vehicles, while diesel expenses cost between $30 and $50 per day.

This means that you must earn at least $105 daily just to break even with the recurring fees.

GrabTax and private-hire drivers, however, can deduct their expenses on diesel, parking, rental vehicles, and vocation license fees worth up to 60% of their taxable income.

The 60% deemed expense on taxes is applicable to anyone whether they work part-time or full-time drivers

 

Bugis Credit - beware of fraud of any Grab Taxi loan

Beware of Fraudulent and Illegal Money Lenders

Don’t fall for unscrupulous individuals who promise to lend money without the need to submit documents. This might seem attractive, but you could be dealing with a loan shark.

If you need money to pay for your vocational license and other fees for signing up with Grab, a licensed money lender remains the best way to do so.

Illegal money lenders trick people, especially those who are desperate, into borrowing money from them. Some of them will not require you to sign a document, which is already a red flag for borrowers.

Loan sharks sometimes don’t have a signed contract with you because they know that it’s illegal for them to charge sky-high interest rates. Licensed money lenders are not allowed to charge more than a 4% rate every month, unlike illegal lenders’ rates that can reach up to 20%.

The absurd charges make it almost impossible to repay your loan with them. Loan sharks want you to be trapped in an endless cycle of debt payment and when you’re unable to pay your dues, they won’t think twice of resorting to harassment and violence.

 

Conclusion

Being a GrabTaxi driver in Singapore can be a lucrative part-time job, but you need to take all expenses into account to earn a decent salary. Licensed money lenders won’t use force or unethical practices.

The Monetary Authority of Singapore and the Ministry of Law bound them to comply with regulatory standards, particularly for debt collection.

Always check the Registry of Moneylenders to determine the legitimacy of a licensed money lender. Click here to know more about Bugis Credit’s loan products and we’ll help you with choosing the right one.

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