Can a Student in Singapore Get a Personal Loan With No Income in Singapore

It’s normal for students in Singapore to constantly deal with unexpected expenses. Whatever the reason is, you might be wondering if it’s possible to secure a personal loan without a steady income.

Well, you’re in luck because you will learn about personal loans for students with no income in Singapore.

A personal loan is money you borrow from a bank or licensed moneylender which you promise to pay back over time with interest. This loan can be used for pretty much anything. Need to pay for that overseas exchange programme? Want to upgrade your laptop for your final year project? Personal loan can be the answer.

Loans come with interest rates which means you’ll end up paying back more than you borrowed. And if you miss payments then you could end up dealing with late fees and a damaged credit score.

Good news awaits you because the answer is yes, you can get a personal loan even if you are a student with no income.

Lenders will be looking for other ways to make sure you can repay the loan because you don’t have a regular income yet. This might mean providing alternative documents like your Income Tax Statements if you’ve ever had a part-time job.

Keep in mind that getting a personal loan as a student with no income is possible but the interest rates can be higher than standard personal loans. You don’t want to graduate with a mountain of debt right?

Make sure you’ve explored all your options. Have you checked if your school offers financial aid? Or maybe you could pick up a part-time job? A loan should be a last resort and not your first port of call.

Singapore has strict regulations in place to protect borrowers.

All moneylenders in Singapore must be licensed by the Ministry of Law. This means they have to follow a lot of rules to protect people from getting ripped off or falling into a debt trap.

Licensed moneylenders can’t charge more than 4% interest per month. That might still sound like a lot but it’s way better than what some unlicensed loan sharks might try to charge you. There’s also a limit on how much they can lend you based on your income.

Regulations also require moneylenders to be upfront about all the terms and conditions of the loan. They can’t just spring surprise fees on you or change the interest rate. They have to explain everything clearly before you sign on the dotted line.

Getting personal loans for students with no income might seem tricky but you can do it with these tips to boost your chances of approval.

First things first, you’ve got to prove you’re a responsible borrower. If you’ve got a credit card then make sure you’re paying it off on time. Even small consistent payments can show lenders you’re trustworthy. If you don’t have a credit card, consider getting a secured credit card or becoming an authorised user on your parents’ card.

Even if you don’t have a regular income, you might have other sources of funds. Do you get an allowance from your parents? Have you got a scholarship? Maybe you’ve got a part-time gig tutoring or delivering food? All these can count as “income” in the eyes of a lender. So gather up all your documents and be prepared to show where your money’s coming from.

A guarantor is someone who promises to repay the loan if you can’t. Asking your parents for help might feel like you’re taking a step backwards in the adulting game but it’s better than turning to some dodgy ah long who’ll charge you so much in interest. Having a guarantor might even help you get a better interest rate.

Unsecured loans can sometimes be a hassle to deal with, especially for students who do not have enough money yet. If this is the case for you, then it might be worth it to check out secured loans especially if you have a property such as a car or jewellery that you can put up as collateral. The thing about this loan is the interest will be lower since the lender has less risk.

Don’t just go for the first loan offer you see. Shop around like you’re hunting for the best chicken rice in Singapore. Different lenders have different criteria and offers. Some might be more lenient with students while others might offer better interest rates.

Getting personal loans for students with no income in Singapore isn’t as impossible as finding a seat on the MRT during peak hours. All you need to do is plan it properly. After all, loans are major financial commitments that you need to pay back. Once you are ready to take out a loan, MoneyIQ can help get you in touch with reliable money lenders in Singapore so you can get the best loan tailored for you.