Personal Loans For Self-Employed Individuals

Personal loans work differently for salaried employees versus entrepreneurs and freelancers. If you're about to become self-employed, understand that this will affect the loan amounts and borrowing limits offered to you by financial institutions. Interest rates and fees may change, too. 

To ensure that you don't lose access to funds that can help you finance your new business, or address urgent financial needs, you'll need to understand the fundamentals of unsecured loan requirements.

DBS Personal Loan

Repayment summary 

• Principal loan amount: S$10,000

• Loan tenure: 36 months

• Interest rate: 1.99% p.a.

• EIR: 4.43% p.a.

• Total interest payable: S$697

• Total amount payable: S$10,697.00

• Monthly instalment: S$294.36

HSBC Personal Loan

Repayment summary

• Principal loan amount: S$10,000

• Loan tenure: 36 months

• Interest rate: 1.8% p.a.

• EIR: 3.5% p.a.

• Total interest payable: S$549

• Total amount payable: S$10,549

• Monthly instalment: S$294

Standard Chartered CashOne Personal Loan

Repayment summary

• Principal loan amount: S$10,000

• Loan tenure: 36 months

• Interest rate: 1.60% p.a.

• EIR: 3.07 % p.a

• Total interest payable: S$480.32 

• Total amount payable: S$10480.32 

• Monthly instalment: S$291.12

Citi Quick Cash Personal Loan

Repayment summary

• Principal loan amount: S$10,000
• Loan tenure: 36 months
• Interest rate: 3.45% p.a.
• EIR: 6.5% p.a.
• Total interest payable: S$1,033.64
• Total amount payable: S$11,033.64
• Monthly instalment: S$306.49

OCBC ExtraCash Loan

Repayment summary

• Principal loan amount: S$10,000
• Loan tenure: 36 months
• Interest rate: 10.08% p.a.
• EIR: 11.47%
• Total interest payable: S$1,629.80
• Total amount payable: S$11,629.80
• Monthly instalment: S$323.05

TCC Personal Loan

• Monthly Repayment: S$510.77
• EIR: 7.20%
• Processing Fee: N/A
• Prevailing Interest Rate: 6.99% p.a.

Loan details

• Citizenship status: Singapore Citizen, and Permanent Residents
• Minimum annual income: S$14,400
• Maximum loan tenure: 60 months
• Processing Fee: N/A
• Documents needed for self-employed individuals:
• Latest 2 years Income Tax Notice of Assessment (NOA)
• Documents needed for gig workers:
• Latest 2 years Income Tax Notice of Assessment (NOA)
• Last 6 months of income statements

Repayment summary

• Principal loan amount: S$10,000
• Loan tenure: 36 months
• Interest rate: 6.99% p.a.
• EIR: 7.20%
• Total interest payable: S$8,388
• Total amount payable: S$18,388 
• Monthly instalment: S$510.77

Now that you know self-employed individuals, freelancers and sole proprietors can get personal loans, let's delve into the challenges loan seekers with variable income face. 

• Limited choices: Most banks look favourably on documents such as monthly CPF contributions and payslips. If you are a variable income earner unable to provide such documents, you'll have a limited pool of loan providers to choose from. The banks that do offer loans for freelancers and self-employed individuals often require additional financial documents, such as either your CPF contribution history statement or Income Tax Notice of Assessment. 

• Higher interest rates: Because freelancers or self-employed individuals are often seen as risky borrowers, this may result in steeper rates, especially from banks. If you are unable to fully substantiate your income and take out a OCBC ExtraCash Loan, this may result in you being able to borrow less at a higher interest rate. If you have an annual income between S$20,000-29,999, you will be subject to interest rates of 12.31-13.14% p.a. (EIR 23.10-26.39%). Meanwhile, those with an annual income of S$30,000 and above will be subject to interest rates of 5.42-5.54% p.a. (EIR 10.96-13.92% p.a.)!

• Eligibility barriers: Formal assessment of creditworthiness is difficult due to lack of CPF contributions or proper income records. While some lenders may be more flexible with accepting proof of income via bank transfers, PayNow logs or other digital payment records, banks may not be able to approve your loan based on these documents. You might have better luck with licensed moneylenders or a credit co-operative. 

Finding the right personal loans for freelancers and the self-employed can be challenging. Fortunately, there are steps you can take to boost your eligibility as a variable income earner.

• Client payments recorded in your bank statements

• IRAS Income Tax Return form declaring your income

• Invoices or service contracts with regular clients or platforms (e.g., Fiverr, Upwork and Glance)

• Utility bills or tenancy agreements as proof of stable housing

• Guarantor income documents, if applicable

Proper record-keeping is critical for freelancers, self-employed individuals and sole proprietors to gain trust in the eyes of your loan provider. It's never too late to start!

Based on the information we've shared above, you now know that your bank may or may not ask for your CPF contributions. But they will always ask for your income tax Notice of Assessment. If you are a commission-based earner, your bank may ask you for Commission Statements instead. So don't go thinking that you can fool banks into believing that by “inflating” your monthly income through generous albeit voluntary CPF contributions. 

Although this will not raise your credit ceiling, you may benefit from a savings and investment view point. After all, the CPF Special Account interest rate will remain at 4% p.a. until at least 31 December 2025, which is a decent rate even when compared to certain high-yield savings accounts.

>>  MORE: How Many Personal Loans Can You Have at Once?

Some personal loans may require higher incomes from self-employed individuals and freelancers. This is similar to what foreigners experience when they try to get a personal loan in Singapore. One example is the HSBC Personal Loan, which mandates a minimum annual income of S$30,000 for salaried applicants but S$40,000 for self-employed or commission-based earners.

Unfortunately, there is no one weird trick that will get you out of this sticky situation. The only way around it is to own a thriving business with significant assets, or get rich. Once you have a million dollars parked in your bank account, fewer banks will doubt your ability to pay them back.

You will need to be employed for three months as an employee before your bank will take that CPF statement as evidence of your income. Are you a salaried employee who has been working for less than 3 months? If you’re applying for a credit card or taking out a loan, banks may ask you for additional documents for verification purposes. For example, DBS Bank requires salaried employees with less than 3 months of employment to provide their Letter of Appointment and a copy of their Staff Pass, along with the usual documents such as your NRIC.

So to answer a common question: no, you cannot work a part-time job for a month to get a loan, and then go back to being self-employed.

You'll need every advantage as a self-employed individual or freelancer to increase your eligibility for personal loans. One way to do this is to maintain a high credit score. If you default on your loans or fail to repay them on time, access to bank loans can quickly go from difficult to impossible. Stick to loans that you know you can service, and always pay credit card bills in full and on time.

You may check your credit score online by obtaining your personal Consumer Credit Report at Credit Bureau Singapore's (CBS) website. This will cost you S$8. According to CBS, you may be eligible for a complimentary credit report if you make an application for a credit facility with a CBS partner. Check with your financial institution or log onto CBS's website via Singpass to verify if you are eligible for a free report.

Here are some tips for freelancers and self-employed individuals to improve their chances of getting a personal loan in Singapore.

Meticulously document your income

Build trust with banks and licensed moneylenders by giving them a trail they can verify and track. Here's how:

• Don't forget about Form B/B1, which is required for those with a total annual income exceeding S$22,000 or if your annual net profit is above S$6,000. Form B/B1 is widely accepted as proof of income, so you don't have to sweat it in the absence of payslips.

• Compile statements or screenshots from digital payment platforms like PayNow, Fiverr or Upwork to show lenders that even if your income may vary, it is always consistent.

• Use a separate bank account for your sole proprietorship or freelance role for clear and transparent records. 

• Don't discount the power of budgeting apps for tracking your income and expenses; a monthly summary can demonstrate financial stability.

>>  MORE: Best loans for emergencies in Singapore 2025

Raise green flags, not red flags

• Uphold timely repayments on existing debts, so the Moneylenders Credit Bureau (MLCB) knows you have a clean record.

• Prioritise settling existing debts, especially if you have multiple credit lines.

• Minimise suspicious transactions such as large withdrawal or deposit sums.

The more documents, the more credible

• Compile your client contracts, especially with regular clients whose payments appear in your bank or digital records.

• Business registration documents issued by the Accounting and Corporate Regulatory Authority (ACRA) are a must for freelancers and sole proprietors 

• Professional certifications or qualifications that showcase your standing in your industry

It's not uncommon for banks to request freelancers or sole proprietors to provide their income tax Notice of Assessment (NOA). HSBC Bank, for instance, requests that you present them with your NOA from the last two years. If you have been self-employed for less than a year, this is obviously a problem.

As such, individuals seeking to become entrepreneurs or self-employed should secure a line of credit before quitting their job. A line of credit, or credit card, is usually valid for at least two years. This covers the amount of time needed before your NOA qualifies you for another loan.

Note that there are many advantages to having a valid credit card or credit line for the newly self-employed. For example, if you are an up-and-coming freelance photographer, you can save by charging your initial equipment costs to a cashback credit card.

Get access to these facilities before you take the plunge. When it comes to credit, it’s better to have it and not need it.

Although you may obtain secured loans of any amount, this rule does not apply for unsecured loans. The Ministry of Law imposes strict limits on how many an individual can borrow, determined by their citizenship and annual income.

Comparing maximum loan sums

These Ministry of Law regulations are aimed at preventing borrowers from racking up too much debt. With liabilities for Singapore households rising for the 6th straight quarter, these limits are needed more than ever.

• Best loans for self-employed individuals: Banks and licensed moneylenders with Singpass integration. If your relevant financial data is up to date on Singpass MyInfo, you may want to consider borrowing from a bank or a licensed moneylender that has integrated Singpass into their processes. Otherwise, you may want to think about taking out a loan from a credit co-operative, such as TCC Credit Co-operative, which explicitly states that they offer loans to self-employed individuals. 
  
  

• Best loans for sole proprietors: P2P lending platforms, such as Funding Societies or MoolahSense. Budding startup business owners usually don't have a lot of capital to splash around. This lack of collateral or credit standing may make it challenging to obtain a SME business loan from a bank, but you can still look to PSP lending platforms. Explore loans ranging from micro loans, start-up financing to business term loans, to find something that fits your organisation's financial needs.
  
  

• Best loans for freelancers: Licensed moneylenders or credit co-operatives. Short on proof of income? Take advantage of licensed moneylenders' flexibility when it comes to proof of income to secure your personal loan. Otherwise, you may take out a loan from credit co-operatives, which offer loans to everybody from salaried to gig workers. You will need to provide all the relevant documents typical for bank loan applications, as well as your income statements and income tax Notice of Assessment.

Due to their flexibility when it comes to financial documents and eligibility criteria, self-employed individuals and freelancers seek out licensed moneylenders when faced with rejection from financial institutions. In the event that you find yourself in such a scenario one day, it's important to know how to identify a licensed moneylender as well as important regulations surrounding their role. 

How do you check if a licensed moneylender is legit? Fortunately, all you have to do is to check any potential lenders against the Ministry of Law's List of Licensed Moneylenders in Singapore. Updated on a frequent basis, this handy list also includes the names of formerly licensed moneylenders whose licenses have now been suspended.

Ministry of Law regulations on licensed moneylenders 

• Licensed moneylenders are allowed to charge a maximum interest rate of 4% per month (48% p.a.)

• The maximum fee they can charge for each month of late repayment is S$60

• Fees charged upon loan approval cannot exceed 10% of the principal loan (This includes admin or processing fees)

• You are legally obliged to fulfil loan contracts you enter with a licensed moneylender, so be sure to pay on time 

• Licensed moneylenders are allowed to pursue claims in court for recovery of defaulted loans