It is easy to secure a personal loan in Singapore if you know what to do. The requirements demanded by loan providers are generally similar. In Singapore, personal loans are made available to people within the ages of 21 and 65 who meet the criteria for eligibility, according to the DailyPioneer.
To become a beneficiary of a personal loan, you will need to provide proof of your annual income. As a resident in Singapore, your request for a credit will be considered if you have a yearly income of S$ 30,000 or higher, as seen here.
However, foreigners who need personal loans are expected to earn between S$40,000 and S$ 60,000 before they can be considered for a personal loan.
In special cases, you can secure a personal loan if your annual income falls below the values stated above. In such cases, the interest rates are significantly higher.
Please note that the loan requirements vary among the different lenders. The documents requested to process a personal loan are as follows…
• State issued identification document- The following documents to prove your identity are accepted – Singapore Identification Card (IC), Employment Pass (EP), and the International Passport
• Documents that indicate your address, such as utility bills that show your full name and address in Singapore.
• Financial income statement documents – Acceptable financial documents needed to process a personal loan include – original copies of the Central Provident Fund (CPF) contribution statement, Income Tax Notice of Assessment, Payslips, and other related financial documents as requested by your lender.
Categories of Personal Loans in Singapore
There are three options available to the public who need a personal loan in Singapore. These alternatives have different features, which make it convenient for the public who have varying financial needs.
Personal Instalment Loan
This is a personal loan package created for people who need large sums of money for emergencies or to make a purchase. The loan, when granted, is paid back in instalments with interest, as agreed between the lender and borrower.
The credit line personal loan agreement gives the beneficiary access to make withdrawals when necessary. Credit lines have a limit; this means you cannot withdraw more than a specific amount of money. You are expected to pay back the money withdrawn and an interest that is calculated based on what you have taken. This payment is done according to your agreement with the lender.
Balance Transfer Personal Loan
Loan providers in Singapore offer customers an opportunity to migrate outstanding loans to one account. The total amount you owe is calculated, and a monthly payment fee is agreed between you and the loan provider.
This agreement makes it easier for customers to pay off huge debts. Loan providers can offer the customer a period of 6 to 12 months to pay off the loan in monthly instalments.
Tips to Consider Before Taking a Personal Loan
It is important to tread carefully because personal loans attract an interest that may compel you to repay more money over time.
It is Important to Have Regular Income Before Taking a Personal Loan…
You must have a secure means to pay back the personal loan. Many customers run into issues with their loans because they incur more debts after defaulting on payments.
Avoid Buying Liabilities with Personal Loans
It is not a great idea to take a loan because you need to go on a vacation or to buy luxury items. The interest paid on a personal loan is not worth it. Instead leverage personal loan offers to pay off debts. You should consider using a balance transfer personal loan offer to become debt-free.
Lower Interest Rates
Lastly, you need to use the services of loan providers, such as https://www.accreditloan.com, that have customer friendly packages and reasonable interest rates.
There are smart personal loan services online that offer financial aid to eligible people. These loan providers are significantly cheaper, faster, and more reliable, so they are worth checking out.