When you find yourself in a middle of financial crisis, you need a loan quickly. We will share some valuable tips and tricks on how to apply for a personal loan for low income Singapore if you have a low income. Let’s explain how personal loans work and what to keep in mind before getting into this.
What Is The Maximum Amount A Salaried Person Can Borrow?
The highest loan quantum you can acquire in Singapore is determined by the lender, salary, personal loan interest rates, and loan tenure.
Taking Out A Loan From A Bank
Most of us think of borrowing money from a bank when we need money, whether it is for education or a wedding, you can read below and see how to find the best wedding loan in Singapore. You will be able to receive more significant loan amounts from banks than from private financial institutions, for example. The requirements and formalities are generally stricter. For example, banks won’t give you a personal loan if your annual income is less than $30,000. This is the standard benchmark used by banks in Singapore for extending loans.
This rule, however, does not apply to all cases. For example, some banks offer personal loans at a higher interest rate if your credit score is low annual salary. You must also have a minimum income of at least $40,000 to $60,000 per year if you are a foreigner staying in Singapore. A licensed moneylender is a better alternative because of these strict conditions.
Personal Loans In Singapore: What You Will Need To Apply
Let’s look at the documents you’ll need to apply for a personal loan low income Singapore:
Identity Proof: NRIC
Singapore citizens and PRs who apply for loans must provide their NRIC. Foreigners must present their passports and employment passes to banks and financial institutions.
You will need to provide proof of residence before applying for a loan at a bank or Singapore money lender interest rate. Proof of residence can include:
- Statements of bank accounts
- Bills for utility services
- Your letters
- Lease agreements you signed
- Income Documents
Proof of income
Proof of income is required to assess the amount you are eligible to borrow, the interest rate you will be charged, and your capacity to repay the loan. As a result, wanting a massive income permits you to obtain a larger loan principal and a cheaper interest rate.
Contribution to CPF
The contribution history statement outlines how much you contributed based on your salary over the past 12 months and any job changes.
Submitting your payslip would be a better option if you earn a good amount of money and are looking for an enormous loan. Most licensed Singapore money lender interest rates require your previous three-month payslips. The HR department usually has access to them. Those documents can be submitted for a larger loan if CPF contributions are not deducted from your salary because they are minimal.
The maximum amount you can borrow from licensed moneylenders is S$3,000 if you earn less than S$20,000. Your monthly income can be up to 6 times what you make over S$20,000 if you make more than S$20,000 a year. However, you may be able to borrow up to four times your salary with some banks. An approval process that takes longer is required for a lower loan amount. Getting a loan for a lower amount will require more paperwork and approval time.
If you are looking for how to find the best wedding loan in Singapore, the approval process for loans from licensed moneylenders is generally more lenient than that of banks. Generally speaking, lenders consider your ability to pay back the loan rather than your credit score when approving your loan application. If you apply for a loan for the first time, you are more likely to get it approved.
So, How To Apply For A Loan If You Have Low Income?
They are also generally much more flexible and customise their loan products according to their customer needs, especially in personal loan for low income Singapore. You will get a loan tailored to fit your financial situation so that the interest rate, period, and repayment schedules are manageable for you.