Getting personal loans in Singapore is easy as long as you meet the qualifying criteria.
Of all the questions we get about personal loans in Singapore, the most popular one has to do with eligibility. Many people aren't aware of how easy the application process is.
In general, the criteria to get a loan is fairly easy to meet. A more stringent criteria applies to foreigners and it varies from bank to bank. Typically, a valid employment pass is also required.
Here’s a summary of what is typically required:
|Nationality||Singaporean or Permanent Resident (PR)||Foreigner|
|Age||21 - 65 years old||21 - 65 years old|
|Minimum Annual Income||S$20,000 and above||Varies from bank to bank|
|Other requirements||N.A.||Employment Pass with at least 12 months' validity|
However, the higher your annual income, the more you qualify for lower interest rates. SingSaver has consolidated information from some of the available personal loans in the market to help you find a personal loan with the lowest interest rates for your needs.
Be sure to prepare the necessary documents for a smooth application process. These include:
- Income documents such as your payslip or income tax notice of assessment (NOA)
And that's it! With everything ready, you can get your loan as fast as an hour.
See also: Your Go-To Personal Loans Guide in Singapore
Top Tips on Getting a Personal Loan
1. Borrow What You Need and Repay Quickly
The longer the loan tenure, the greater the interest rate
2. Look at Other Fees and Charges
Besides the representative rates, look at the fees and charges. Types of fees include processing fees, late fees, early repayment fees, and restructuring fees.
3. Use a Loan Calculator
Loan calculators are handy tools that will help you figure out the monthly installments you need to pay.
4. Check Your Credit Score
Note that for some personal loans, you can only get the low interest rate if you have good credit profile. You can work on your credit profile by checking your credit rating. A copy of your credit report (what’s a credit report?) can be requested from Credit Bureau Singapore (a fee of S$6.42 applies).
See also: A Cheat Sheet to Getting the Highest Credit Score in Singapore
While getting a personal loan might not seem as tough as it seems, you should always consider your financial situation wisely before taking out any debts. Do check out this personal loan checklist to help you decide whether you really need an additional loan on your shoulders.
By Alexa Fang
Alexa is a pop-culture vulture. She lives to read, write and travel, and decided long ago that life is stranger than fiction. When she's having croissant, she thinks in French. "31 Rue Cambon" is her favourite address, and she believes that money one enjoyed spending is never money wasted.