Are Personal Loans Hard to Get in Singapore?

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Lady thinking about personal loans - SingSaver

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.

Guy in front of a laptop and writing notes - SingSaver

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:

  • NRIC
  • 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.

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.

Fingers on a calculator - SingSaver

3. Use a Loan Calculator

Loan calculators are handy tools that will help you figure out the monthly installments you need to pay.

Loan calculator tool on a tablet - SingSaver

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.


Alexa FangBy 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.


 

 

About Alexa Fang

Alexa Fang 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