A personal loan is a credit facility that allows you to borrow money for personal expenses such as marriage, home renovations, medical expenditure, etc. There are not many restrictions on a personal loan regarding its usage; you do not need to worry about the collateral deposit.

So, how to get personal loan in Singapore?

How To Get A Personal Loan In Singapore?

You will need to research the personal loan lending sources; they can be the bank or licensed money lenders in Singapore. Usually, you get the money in the form of cash, which would be deposited into your bank account by the lending source.

But, before getting a personal loan in Singapore, it is essential to know its types and considerations.

Types Of Personal Loans In Singapore

According to your needs, you may choose the most appropriate type of personal loan. There are four kinds of personal loans in Singapore

Personal Instalment Loan

This provides you with the needed sum of money initially. The borrower must then repay the lender the same amount of money each month until it reaches the borrowed amount with interest (if charged).

It is very popular in Singapore since people opt for this kind during emergencies like weddings, renovation, birthdays, etc.

Debt Consolidation

As mentioned in the name itself, this type consolidates all the loans into a new one. It is used to pay off other debts, loans, or liabilities. The new loan provides a lower interest rate, lower instalments, etc.

This will help the borrower manage his debts with single instalments instead of many he borrowed from.

Line Of Credit

This provides you with a specific amount of funds to use any amount. You may pay this loan immediately or over a predetermined period. Line Of Credit is similar to credit cards.

However, the interest rate is variable and sometimes very high. Line Of Credit appears with an annual fee; therefore, you must only apply for this loan once you are sure that you can repay it.

Balance Transfer

This process allows the borrower to shift the personal loan from one institution/bank/source to another one, providing better pay off facilities.

Usually, these kinds of loans are provided by banks, some of which may provide you with a grace period that you may not need to worry about the interest.

Eligibility Criteria For Personal Loans In Singapore

There are a few rules and regulations regarding the issue of a personal loan in Singapore. Generally, it depends upon your age, income and citizenship. However, the lending source may also impose a few specifications upon the borrower.

Singaporean banks

Singaporean banks have strict regulations compared to Singapore’s licensed moneylenders. They demand you to have an annual income of at least S$30,000 regardless of your employment status.

For foreigners, the demanded annual income is S$40,000 to S$60,000.

Licensed moneylenders

If you cannot match up to the requirements of the banks, then you need not worry because there are other legal ways to borrow money from. The moneylenders fix the rules and regulations, which are not so stringent.

It would help if you kept in mind a few things while borrowing from a licensed moneylender. First of all, you should check the name in the list of licensed moneylenders from the Ministry of Law website. You must ask for a contract and ponder over the terms very carefully. If you are a Singaporean and have an annual income of less than S$20,000, you can still opt for a loan up to S$3,000.

• You would need an identification certificate, address proof and proof of your income, such as a payslip or CPF.

Things To Keep In Mind While Getting A Personal Loan In Singapore

• Gather knowledge about the bank or licensed money lender Singapore interest rate, annual fee, late payment fee, and change in tenure fee. Check the processing time of the loan. During emergencies, you should choose a bank or moneylender that will immediately transfer the loan into your account.
• You must check the credibility of the moneylender. Check their track record with the borrowers. Some lenders may be an illegal one and can charge you with unnecessary interests.
• You should be sure enough that you will be able to repay the loan in time.
• Invest the fund into something productive.

The Bottom Line

If you are residing in Singapore and currently looking for a reliable source to borrow money from, then make sure to follow all the steps mentioned above to get the most convenient personal loan. It is important to adhere to the eligibility criteria if you want to get a personal loan in Singapore.

Moreover, if you are looking an instant cash loan, you may check it from list licensed money lender Singapore.