Can You Get A Personal Loan Without Income Proof In Singapore?

Yen Joon

Yen Joon

Last updated 26 April, 2024

While you can technically get a personal loan without proof of income, there are some things to consider beforehand. Here’s all you need to know. 

If you want a personal loan but don’t have income proof, getting approval from lenders such as banks can be challenging.  

However, the good news is that it’s not the end of the world; you can still qualify for a personal loan even if you’re a low-income earner, self-employed person, or don’t have a regular income. Let’s discuss below. 

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Is it possible to get a personal loan without income proof in Singapore?

In case you didn’t know, declaring your earnings is a standard requirement for getting a personal loan from a bank. Indeed, the amount you can borrow from a bank is largely dependent on your income. 

Typically, Singaporeans and Singapore Permanent Residents require an annual income of at least S$30,000 to be eligible for a personal loan. For foreigners, the minimum annual income requirement is usually S$40,000 to S$60,000. 

That said, it’s technically still possible to get your personal loan approved even if your annual income falls below that benchmark. 

However, other factors, such as your relationship with the bank and credit score, will also come into play. If your credit score is excellent, banks may be willing to offer you a loan even if you’re a low-income earner but at a higher interest rate. The amount you can obtain varies from bank to bank. 

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How to get a personal loan without income proof

As mentioned, it’s possible to get a personal loan without proof of income. But there are ways to compensate for the lack of income proof.

Provide your Notice of Assessment (NOA) 

Unlike salaried workers who only need to submit their CPF contribution history, self-employed persons have to submit their latest income tax NOA as proof of income. The NOA is your tax bill from the IRAS, and features your income, tax, and contribution history in a year. 

Copy for your NRIC or Employment Pass (front and back)

You’ll also need to provide identity proof to verify your ID; NRIC for Singaporeans or Singapore Permanent Residents and Employment Pass for foreigners. 

Get or maintain a good credit score

Your credit score is one of the deciding factors in getting a personal loan, as it reveals whether or not you’re a creditworthy customer. Therefore, having a good credit score can help increase your chances of securing a loan. 

A credit score is a four-digit number derived from the Credit Bureau Singapore (CBS). It is used by lenders to indicate an individual's likelihood of repaying debt and the probability of default. 

Your credit score consists of your financial activity and credit history with banks and finance companies. These include your past payment history and credit or loan applications. 

Lenders can assess your risk profile based on your credit score, which is between 1,000 and 2,000. 

                                                         Source

 

The highest score is 2,000, while those with 1,000 are most likely to default on payments. A bad credit score ranges from 1,000 to 1,723, with an “HH” rating.

Things that can improve your credit score include paying your credit card or loan payments on time, staying within your credit limit, keeping your loan balances low, and having low-risk credit products to prove that you’re managing them well. 

On the other hand, things that can harm your credit score include missed or late payments, having multiple credit facilities (credit cards, personal loans, personal lines of credit, etc.), making multiple loan enquiries in quick succession, and having no credit history. 

Apply under a joint application

You can also increase your chances of getting a loan by making a joint application with someone else. 

The joint applicant can be your spouse, children, relative, or friend, and ideally, they should have a good financial standing (i.e., a good credit score and income). Your co-applicant will also be the guarantor or cosigner and share the responsibility of repaying the loan. 

SCB PL_KV1_BLOGARTICLE_800x250

Singsaver Exclusive Offer: Receive the following rewards when you apply for an SCB CashOne Personal Loan.

New Customers: Receive an Apple iPhone 15 128GB (worth S$1,311) or a Dyson Purifier Cool Air Purifier TP07 (worth S$909) or an Apple iPad 10th Gen 10.9 64 GB (worth S$529) or a Dyson V8 Slim Fluffy (worth S$509) or a Nintendo Switch Gen 2 (worth S$399) or up to S$1,040 eCapitaV upon loan approval when you apply for a minimum loan of S$8,000. Valid till 30 June 2024.  T&Cs apply.

Existing Customers: Receive up to S$520 eCapitaV upon loan approval when you apply for a minimum loan of S$8,000 with a tenure of 3 to 5 years. Valid till 30 June 2024. T&Cs apply.

Plus, enjoy up to S$4,100 cashback when you apply for a min. loan of S$12,000 with a tenure of 3 to 5 years. Valid till 30 September 2024. T&Cs apply.

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Things to consider before applying for a personal loan

Avoid making multiple loan applications 

Each time you make a loan application with a bank or financial institution, they will pull your credit report from your records. Having too many enquiries will reflect that you’re “credit hungry”, in financial difficulty, or trying to take on more debt, thus increasing your risk profile. 

Interest rate

The interest rate is the main deciding factor in overall loan affordability. For obvious reasons, the lowest interest rate is preferable to higher interest rates, but you should consider the effective interest rate (EIR) over the advertised rate. 

That’s because the EIR considers the cost of borrowing, which includes the administrative fees, as well as other factors such as the number of instalments, frequency of instalments, and the instalment amounts, giving you a more accurate picture of the cost of a loan.

While going with the lowest EIR may be a wise move, every loan is structured differently. For example, a longer loan usually has a lower EIR because you’re paying a lower amount each month. However, this also means that you’re paying more interest overall. 

In contrast, a loan with a lower EIR usually means a shorter tenure, which results in higher monthly instalments. This isn’t ideal if you have cash flow problems. 

Look out for fees

Aside from the interest rate, you should also be aware administrative costs of borrowing. Some banks charge a processing fee which can increase the cost of your loan. Other fees to look out for include late payment fees, early settlement fees, and cancellation fees.

Consider a balance transfer

A balance transfer is a type of unsecured short-term loan in which you transfer the outstanding balance on your credit card(s) to another credit card of another bank, or a percentage of your available credit card limit to your deposit account at a low or 0% interest rate. 

In other words, you can consolidate all your credit card debts in one account, making it easier to keep track and manage your debts. 

Balance transfers offer more flexibility in repaying your debt, and you can also avoid the sky-high interest rates of credit cards or credit lines.

While a balance transfer can help reduce the interest charges on your existing debt, it doesn’t eliminate it; you still need to make a minimum payment every month to clear your debt. Furthermore, a one-time processing fee is charged.    

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Best personal loans for low-income earners

Personal loan

Minimum annual income

Interest rate and fees

Loan limit and tenure

POSB Personal Loan

 

S$20,000 (Singapore citizens, PRs, and foreigners)

From 3.88% p.a. + 1% processing fee

(EIR 7.56% p.a.)

Maximum loan: up to 10X your monthly income


Loan tenure: 1 to 5 years

Standard Chartered CashOne Personal Loan

 

S$20,000 (Singapore citizens and PRs)


S$60,000 (foreigners)

From 2.88% p.a. (EIR from 5.84% p.a.)


S$199 processing fee (first year only)

Maximum loan: up to 4X your monthly income


Loan tenure: 1 to 5 years

OCBC ExtraCash Personal Loan

 

S$20,000 (Singapore citizens and PRs)


S$45,000 (foreigners)

From 2.88% p.a. (EIR from 5.84% p.a.)


S$199 processing fee (first year only)

Maximum loan: up to 6X your monthly income


Loan tenure: 1 to 5 years

CIMB Personal Loan

 

S$20,000 (Singapore citizens and PRs)

From 3.38% p.a. (EIR 6.32%)


1% processing fee for loan amount less than S$5,000; waived for loan amounts S$5,000 and above

Maximum loan: up to 8X your monthly income (with annual incomes of S$120,000 and above)


Loan tenure: 1 to 5 years

Citi Quick Cash Loan

 

S$30,000 (Singapore citizens and PRs)


S$45,000 (foreigners)

From 3.45% p.a. (EIR 6.50% p.a.)


No processing fee

Maximum loan: up to 4X your monthly income 


Loan tenure: 1 to 5 years

HSBC Personal Loan

 

S$30,000 (Singapore citizens and PRs)

S$40,000 and an Employment Pass with validity of at least 6 months

From 2.92% p.a. (EIR 5.50% p.a.)

Maximum loan: up to 8x your monthly salary, capped at S$200,000 (with annual incomes of at least S$120,000)


For foreigners: up to 4x your monthly income (capped at S$100,000)

CIMB_PL_TIERED_BLOGARTICLE_800x250 (3)

SingSaver Exclusive Offer: Receive a Macbook Air 256 GB 13 Inch M2 Chip (worth S$1,613.80) or a Dyson V12s Detect Slim Submarine™ Complete (worth S$1,449) or a PlayStation 5 (Disc Version) (worth S$799) or a Dyson AM07 Tower Fan (worth S$459) or up to S$1,200 Cash when you get approved for a CIMB Personal Loan with a min. loan amount of S$8,000 and tenure of 3 to 5 years. Applicable to new customers only. Valid till 19 June 2024. T&Cs apply.

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Other FAQs

Q: Can I get a personal loan without a payslip in Singapore?

For a seamless experience, SingPass holders can apply via MyInfo so there are no documents required. 

However, if you’re a low-income earner who is earning below the minimum income threshold requirement or a self-employed person, you can submit your Notice of Assessment (NOA) as part of your application.

Q: Can I take a personal loan from my CPF?

Banks will assess your income when determining your loan amount, so the higher your income, the higher your loan amount. While you can submit your CPF contributions, your CPF statements won’t be taken into consideration. So it wouldn’t if you make voluntary CPF contributions to your contribute more to your CPF accounts, 

Q: What documents are required for personal loans in Singapore?

If you apply via MyInfo on SingPass, no documents will be needed as your information will be prefiled. However, some banks may request for documents such as latest computerised payslip, six months of CPF contribution history statement, NOA, or commission statement from your employer.

 

Read these next:

Personal Loans In Singapore For Bad Credit: How To Apply

How To Apply For A Personal Loan in Singapore

Your Go-To Personal Loans Guide in Singapore 2024

Best Personal Loans To Ease Your Cash Flow In Singapore (2024)

Best Personal Loans For Low-Income Earners In Singapore

How Long Does It Take To Get A Personal Loan?

How Do Personal Loans Work In Singapore?

In my past life, I was always broke because of a lack of financial literacy. Now, I publish a few posts every week* on personal finance to help you manage your money better. *I mean, I’ll try

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Use a personal loan to consolidate your outstanding debt at a lower interest rate!

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