Getting turned down for a personal loan can feel frustrating — especially if you were counting on it to clear urgent bills or kickstart plans like a home makeover.

But a rejection isn’t the end of the road. Loan applications get denied for all sorts of reasons, from credit history to income stability — and many borrowers who are rejected at first eventually succeed by making a few key changes.

Every loan application tells a story — and if yours was rejected, it likely came down to something in your financial profile that didn’t meet the lender’s criteria. The good news? Once you understand what went wrong, you can take targeted steps to strengthen your next application.

>> More: Personal loan application tips to increase your approval chances

1. Low credit score 

In Singapore, most banks and financial institutions refer to your Credit Bureau Singapore (CBS) score to evaluate your creditworthiness. This four-digit score, which ranges from 1000 to 2000, helps lenders gauge the risk of lending to you.

A low score could be the result of missed payments, overutilisation of your credit limits, or multiple recent credit applications within a short span of time. All of these signal to lenders that you may be struggling with debt or at risk of defaulting.

>> More: Best loans in Singapore for bad credit

How to fix it: Start by obtaining your CBS credit report to understand what’s pulling your score down. Then, focus on rebuilding your credit health by paying all bills and debts on time, reducing outstanding balances, and holding off on new credit applications for a while. These consistent efforts can gradually raise your score and improve your chances the next time you apply.

2. Your income may not meet the lender’s requirements

Income plays a big role in whether your personal loan gets approved. In Singapore, banks and licensed moneylenders have minimum income thresholds that vary depending on your residency status and employment type. If your income is irregular, too low, or poorly documented, lenders may view your application as high-risk.

>> More: Best low-income personal loans in Singapore 

How to fix it: Strengthen your case by declaring all income sources — including side hustles, freelance work, or rental income — and provide supporting documents like CPF contribution history, payslips, or bank statements. If your income is still below the minimum, consider applying with a co-borrower, reducing the loan amount, or exploring lenders with more flexible criteria, such as licensed moneylenders.

3. Your debt-to-income ratio exceeds the limit

Singapore’s Total Debt Servicing Ratio (TDSR) framework caps your total monthly debt repayments — including housing loans, personal loans, and credit card balances — at 55% of your gross monthly income. If your existing commitments are too high, lenders may view you as a higher-risk borrower, even if you meet the income requirement.

How to fix it: Start by reducing your outstanding debts, especially short-term obligations like credit card bills or small personal loans. Even paying off one or two can free up your monthly cash flow and improve your eligibility. You can also explore refinancing or consolidating debt to lower your total repayments. Once your debt-to-income ratio improves, you’ll have a stronger case for your next loan application.

4. You don’t meet the lender’s eligibility criteria

Sometimes, your loan application gets rejected not because of poor credit or income — but simply because you don’t meet the lender’s baseline requirements. These can include your age, how long you’ve been employed, your residency status (e.g. PR vs EP), or even the sector you work in. Self-employed individuals and those in probationary roles may also be seen as higher-risk. 

How to fix it: Before applying, always check the lender’s personal loan requirements. If you’re self-employed or newly employed, consider waiting until you’ve built a more stable income record — or explore lenders known to cater to your profile, such as those with flexible requirements for freelancers or self-employees.

5. Your application had incorrect or missing information

A simple error — like a mistyped NRIC number, outdated income details, or missing supporting documents — can be enough to get your loan application rejected. Lenders rely on accurate information to assess your creditworthiness, and discrepancies may signal risk or even fraud.

How to fix it: Take the time to double-check your application before submitting. Ensure your income figures match your supporting documents (like payslips, CPF contributions, or tax returns), and that all personal details are correct. If you're unsure what to include, contact the lender for a checklist.

6. You applied for more than you can realistically borrow

If the loan amount you requested far exceeds what your income and liabilities can support, lenders may reject your application. Banks and licensed moneylenders in Singapore are bound by strict guidelines — including MAS regulations — that limit how much you can borrow based on your income tier.

How to fix it: Before applying, use a personal loan calculator to estimate how much you can comfortably borrow and repay. If you’re unsure, start with a smaller amount and work your way up after improving your credit standing or reducing existing debt.

If your loan application was denied, it doesn't mean the door is permanently closed. These strategies can help improve your odds the next time you apply:

1. Explore pre-qualification options

Some banks and comparison platforms — including SingSaver — offer pre-qualifying tools that let you check your eligibility before applying. This “soft check” won’t impact your credit score and can give you a clearer sense of which loan products you’re more likely to qualify for. 

You’ll only have to undergo a hard credit check once you submit a formal loan application to the banks. 

2. Consider applying with a co-borrower

While rare in Singapore, certain financial institutions and cooperatives may allow a co-signer or joint applicant. This is typically someone with strong credit and stable income who agrees to share responsibility for the loan. Just make sure both parties understand the legal obligations involved.

>> More: Co-signing a personal loan

3. Use collateral to strengthen your application

If you’re struggling to qualify for an unsecured personal loan, consider a secured option instead. For instance, you might use a fixed deposit as collateral. This approach reduces the lender’s risk and may improve your approval odds — though it’s generally more common with banks than with licensed moneylenders.

>> More: Best secured loans in Singapore

If your loan application has been denied, avoid the temptation to reapply immediately. It’s best to wait at least four to six months before trying again — and only after you’ve addressed the reasons for your rejection.

Use this time to review your credit report, pay down existing debts, or prepare stronger supporting documents. Reapplying without fixing the issue could lead to repeated rejections and further harm your credit score.

Also, steer clear of submitting applications to multiple lenders at once. Each credit check leaves a record, and too many hard inquiries in a short period can signal risk to banks and reduce your chances of approval. Take a targeted, informed approach instead.

>> More: Compare the best personal loans in Singapore

If your loan application was denied and you urgently need funds, there are other short-term financing options to explore — though each comes with its own pros and cons.

• Buy now, pay later (BNPL): Major retailers in Singapore partner with BNPL providers like Atome, ShopBack PayLater, or Pace to offer interest-free instalment plans on purchases. This BNPL option is typically used for retail spending, and repayment is split over several weeks or months. It's best for non-essential, planned purchases you can repay comfortably.

• Cash advance or early wage access apps: Apps like Earned Wage Access (EWA) solutions — sometimes offered by employers — allow workers to tap into a portion of their upcoming salary before payday. Repayments are usually deducted from your next salary cycle. Watch out for subscription fees or express payout charges, and avoid relying on this frequently.

• Borrowing from family or friends: Borrowing money from someone you trust can bypass the usual credit checks and interest charges. However, be clear about repayment terms — ideally in writing — to avoid misunderstandings and preserve your relationship.

• Community or social assistance programmes: If you're facing genuine financial hardship, look into government and grassroots support schemes. ComCare, for instance, offers temporary financial help for essential needs like groceries and utilities. Local CDCs (Community Development Councils) and Family Service Centres may also have emergency assistance grants.

• Pawnshop loans: Licensed pawnshops in Singapore let you pledge valuable items like gold or luxury watches as collateral for a short-term loan. While no credit check is needed, interest rates are high, and you risk losing your item if you don’t repay the loan in time. Use this option only if you're confident you can redeem your item.

>> More: Financial assistance programmes to avoid payday loans