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How to Apply for Personal Loan When You Have Low Income in Singapore

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When it comes to getting personal loans in Singaporeit is possible that you really need some extra money but do not fulfil the quota of the income that is required to get you the loan or simply do not have proof of income. When you have an emergency and are desperate for some cash, there is only little you can do, but there are some ways in which you might be able to get some money even if you don’t have adequate income.

 

No matter how badly you need money, never trust any organization without checking if they are genuine. To determine whether an organization is real or not, one must know what to consider before taking personal loans. The essential thing is to know what kind of loans are there and the ones you can afford.

 

However, before you jump into applying for a loan from a bank or a money lender, it is crucial that you understand that no matter what amount of money you want as a personal loan, you will need to repay the amount as well as the amount of interest that has incurred on principle amount in a period of time. If you fail to repay the debt, you will have to pay an additional late fee, which only makes the total amount repaid even bigger. Some people fall into a loop of borrowing more money to repay an initial debt and have difficulty coming out of the cycle. Hence you need to be very careful before you apply for a personal loan in Singapore. 

 

Borrowing from a bank

 

Most people feel that it is safer and better to borrow money from the bank. This is usually because banks can lend a massive sum of money without any notice and generally do not charge an excessive rate of interest. While banks are an absolutely safe and reliable place for You to borrow money from, they have extremely stringent rules for lending money. Almost all banks in Singapore do not lend money to anyone who earns less than S$30,000. In fact, you will not be able to even apply for the loan if you do not meet these criteria. However, there are some very slim exceptions to this rule. It basically considers some banks that offer loans to those with a lower income status but at a much higher rate of interest, which becomes even more difficult to be paid off.

 

Borrowing from a money lender

 

When it comes to taking a loan from money lenders, many people are afraid as these Individuals are loan sharks. However, in Singapore, licensed money lenders are as safe and secure as banks and can provide you with a personal loan without any hassle. One of the best things about these registered money lenders is that they are flexible when it comes to giving loans and are open to providing loans to those with lower income. This is one of the best shots for you and something you can totally use. 

 

 Approval of Loan with money lenders

 

The licensed money lender Singapore is one of the best ways for those who fall in the lower-income strata to borrow money. For once, they are much more lenient when it comes to the approval of your loan. These money lenders attend to your ability to repay the loan rather than your credit score, making it easier for you to get your loan approved. This is why banks do not provide loans; these registered money lenders get ready to help.

 

When you rely on a licensed money lender for your personal loan, you basically conduct business with an actual human. You will be able to customise the loan according to your financial situation. These money lenders take into account your situation and come up with a mutually beneficial solution for both parties. They simply make sure that the rate of interest, the tenure, and the total cost is agreeable and can be managed by you, given your financial report. There is much more flexibility when it comes to borrowing from money lenders in Singapore. 

 

The interest rate charged by money lenders

 

The licensed money lender in Singapore cannot charge an exorbitant rate of interest. This rate is regulated centrally, and no licensed money lender can charge more than 4% interest at any time. This means that, even if you have a long tenure to pay off the debt, the amount of interest remains fixed and more or less manageable. Money lenders’ general perception is that they are loan sharks and charge an exorbitant rate of interest to suck money from their victims. However, this is not true for the licensed money lenders of Singapore, who can charge only up to 4% on the principal amount. Hence, no matter how much money you need or how little money you make, you are protected at all times by these money lenders. 

 

The amount of loan provided by money lenders

 

The regulations have dictated that registered money lenders can only provide up to S$3,000 if the annual income is less than S$20,000. However, if you earn more than S$20,000 per year, you will be able to borrow as much as six times your monthly income. While banks only provide an amount that is four times that of your monthly payment, money lenders undoubtedly offer more to the citizens in time of need. Use an online personal loan comparison tool for getting the information of the best personal loan interest rates for your requirements.

 

If your income does not meet the criteria for lending money for a personal loan, that is nothing to be worried about. All you need to make sure that you have your identifying documents and the other required documents handy. Once you can compile them all, visit the nearest licensed money lender will be able to help you out in your desperate times. Make sure that the money lender is registered and look for their licence before you get to business. 

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