Personal loans are beneficial since they support you in times of need. You won’t know when you’ll need cash for unforeseen expenses such as medical expenses, house renovation or repairs, vacations, and wedding expenditures.
The personal loan Singapore offers does not require collateral because it is an unsecured loan. These days, you can apply online for an immediate personal loan, which is authorised, processed, and deposited into the borrower’s bank account in an instant of hours. In Singapore, there are several banks and financial institutions that provide personal loans.
Who qualifies for a personal loan in Singapore?
In Singapore, if you meet the following requirements, you are eligible for a personal loan:
- Between the ages of 21 and 75
- A citizen of Singapore or a permanent resident
- a foreign national with a current Cash line or credit card account
- possessing a minimum yearly revenue of 20,000 SGD
For example, to qualify for a personal loan, several reputable institutions, including DBS Bank, need a deposit account, a credit card account, and cash line. If you do not currently have a cash line account or a credit card, you will need to provide the following documentation:
- The NRIC, or National Registration Identity Card, and
- The current Notice of Assessment of Income Tax, or NOA.
- A recent bank statement that reflects the deposited
- salary or payslip details.
- Statement outlining the previous nine months’ worth of CPF contributions
You must create a deposit account if you don’t already have one.
Learn about Singapore’s loan features and advantages.
Leading Singaporean banks provide personal loans with many benefits and features. Here are some of the most notable ones:
-
Fast processing
Online applications for personal loans are promptly handled and approved. Depending on the applicant’s eligibility and the supporting documentation presented, they are automatically deposited into the prospective applicants’ bank accounts within a few hours, a day, or a week.
For example, a personal loan from DBS/POSB for an individual who already has a credit card or Cashline account is accepted and verified via SMS within a day, and an acceptance letter is sent to the applicant’s mailing address three days after the SMS is issued.
-
Take advantage of loans equal to ten times your monthly income.
If your yearly income is SGD 120,000, you can obtain a personal loan worth up to ten times your monthly income. If not, it ought to be four times your pay each month. It is imperative, nonetheless, that you meet the aforementioned qualifying requirements.
-
Affordable fixed-payment plan
Most personal loans in Singapore offer manageable repayment terms and set interest rates. DBS/POSB offer lower interest rates on personal loans (3.88% p.a. + 1% service fee; 5 EIR; 7.56% p.a.) with minimum loan terms of six months and maximum loan terms of five years.
-
Other advantages
Submitting an online loan application with a promo code can get you 2% cash back on the loan amount from certain banks, such as DBS. However, the discount is valid only for loans greater than GD 10,000. Also, GIRO transfers are a simple and cashless payment option, making it simple to make the repayments.
-
Does not require collateral
An unsecured loan, such as a personal loan, does not require any kind of collateral.
Obtaining personal loans in Singapore can provide you with quick cash to cover any unforeseen costs. Nevertheless, to borrow money within your means and pay it back quickly, financial planning is crucial.