Individuals who are experiencing financial troubles and are looking for funds to manage their bills frequently make the decision to obtain a personal loan in Singapore. Nevertheless, an essential question arises, and that is, “How many personal loans can you take at once? 

Before moving forward with an application for a personal loan, it is essential to get information regarding the following aspects: the maximum loan amount that you are eligible to receive, the potential of taking out numerous loans, important things to think about before committing to a loan, and the several channels through which loan applications can be submitted. 

What Does It Mean to Get a Personal Loan?

A personal loan in Singapore is an unsecured form of borrowing that offers flexibility in terms of its usage. When we say “unsecured,” it means the loan is not tied to any collateral, such as your car or home. Consequently, if you are unable to repay the loan, the lender cannot seize your assets. 

Read Also: An Easy Guide To Unsecured Loan In Singapore

However, it’s important to note that failing to repay the loan can have adverse consequences for your credit score, diminishing your chances of obtaining future loans. 

So, how exactly does a personal loan function in Singapore? Well, I’m glad you asked! 

Upon approval of your personal loan application, the entire loan amount is disbursed either into your bank account or provided to you in cash. 

This type of loan typically comes with a fixed interest rate and a predefined repayment period. Personal loans are amortised, which means you are required to repay both the principal amount borrowed and the accrued interest. 

Throughout the repayment period, which can extend up to five years, you’ll make monthly instalment payments. These instalments encompass a portion of both the interest and the principal amount. 

It’s important to be aware that additional fees, such as processing fees, may be incurred during the application process. In most cases, the final loan amount you receive post-approval will be the original loan sum minus any applicable fees or charges. 

To illustrate this concept, let’s consider a practical example: 

Mr. Wong intends to secure a $15,000 personal loan with a fixed interest rate of 4.7% over a repayment period of 5 years. A processing fee of 2% is applicable to his loan application. 

What are Some Possible Applications of a Personal? 

When it comes to personal loans, there’s no requirement to provide a specific justification for the loan’s purpose. 

For example, suppose you initially took out a personal loan with the intention of financing your wedding but later decided to use it to repay your student loan. In such a scenario, there’s no wrongdoing involved. 

Here are some of the various purposes for which a personal loan can be utilised: 

  • Emergency Situations: Unforeseen circumstances like medical emergencies or family crises may necessitate immediate funds that aren’t readily available. A personal loan can serve as a financial lifeline during such situations.
  • Wedding Expenses: If you’re planning a wedding but find yourself short of funds, a personal loan can help turn your dream wedding into a reality. Learn more about wedding loans today.
  • Educational Expenses/Student Loan Repayment: Personal loans can be used to cover educational costs or to repay outstanding student loans if, for any reason, you’re unable to meet your loan obligations.
  • Credit Card Debt: If you’re struggling to manage and repay your credit card debts, applying for a personal loan can be a viable option to settle those debts. However, this should be approached with caution, as it’s not a long-term solution and can potentially lead to further debt if not managed responsibly.
  • Debt Consolidation: If you have multiple debts with high-interest rates, obtaining a low-interest personal loan can be a strategic move to consolidate your debts. This can help reduce your monthly instalment burden and make the loan repayment process more manageable.

While a personal loan can be applied to various situations, it’s important to exercise discipline and use the loan for its intended purpose to avoid unnecessary debt accumulation. 

How Much of a Personal Loan Am I Allowed to Take Out? 

When it comes to determining how much of a personal loan you are eligible for, several important criteria come into play. These factors include the purpose of the loan, your ability to make repayments, and the sort of loan you are applying for. 

When you apply for an unsecured personal loan, the amount of money you could potentially borrow may be tied to the amount of money you make each month. However, most lenders will let you borrow up to six times what you make per month. On the other hand, the amount you are approved for when you get a personal loan that is secured depends on how much your collateral is worth. 

Another important factor to consider is the maximum amount that can be borrowed through unsecured loans. The Monetary Authority of Singapore (MAS) has, as of the 1st of June 2019, put a limit on the highest amount of an unsecured loan that an individual is permitted to borrow, restricting it to 12 times the individual’s monthly salary. This includes a wide variety of unsecured loans, such as personal loans, student loans, loans for home improvements, and credit card balances, among others. 

Consider the following scenario as an illustration: you are interested in obtaining a personal loan but have already amassed unsecured debt that is equal to ten times your regular income. Your eligibility for a loan would be limited to an amount that is just twice as much as your regular income under these circumstances. When you’ve borrowed up to the limit that was set for you, applying for additional loans is no longer a possibility. 

When deciding the amount of a personal loan with a low-interest rate that you are eligible for, the lender will additionally take into consideration the following other factors: 

  • The size of the loan is one factor that might be affected by the reason for getting the money in the first place. When opposed to expenses that are purely discretionary, such as going on vacation, lenders may be more willing to advance larger quantities of money to cover necessary demands, such as sudden medical problems.
  • If you have a consistent income and a positive credit history, then you have a better chance of getting approved for a larger amount of money for a personal loan.
  • Your existing financial obligations in comparison to your income are an important factor to consider when calculating your debt-to-income ratio. If you have considerable current debts, your loan amount may be reduced by the lender. On the other hand, if your debt load is lower, the lender may offer you a more favorable loan amount.

In essence, the amount of a personal loan you can access is contingent on a nuanced interplay of factors, undermining your borrowing capacity. 

When it comes down to it, the amount of a personal loan that you are eligible for is dependent on a complex interaction of a number of elements. This highlights the significance of your goal, your current financial standing, and your previous debt profile in deciding your ability to borrow money. 

Learn more: How much Personal Loan Can I Take in Singapore?

Do You Qualify for a Personal Loan?

Not everyone meets the eligibility requirements for a personal loan. While these criteria can vary slightly among different lenders, here are the fundamental prerequisites for qualifying for the best personal loans in Singapore: 

  • Applicants must be either Singaporean citizens, permanent residents, or foreigners. 
  • Applicants typically need to fall within the age bracket of 21 to 60 years 

Income Requirements: 

  • Singaporean citizens or permanent residents are typically required to earn a minimum annual income of $20,000.
  • Foreign applicants may need to demonstrate an annual income ranging from $40,000 to $60,000, depending on the lender’s specific policies.
  • Many lenders may necessitate proof of a stable source of income and may require applicants to have been employed continuously for at least one year.
  • Lenders might also evaluate your credit history and may stipulate a minimum credit rating or score as part of the eligibility criteria for a personal loan.

Meeting these fundamental criteria is typically essential for those seeking to qualify for the most favourable personal loan options in Singapore. However, it’s important to note that specific lenders may have additional requirements or considerations beyond these basic prerequisites. 

Are There Limits on the Number of Personal Loans You Can Take Out?

In principle, it is possible to acquire multiple personal loans. However, the feasibility of doing so is contingent upon the Monetary Authority of Singapore’s (MAS) stipulated borrowing limit for unsecured loans, which stands at 12 times your monthly income. 

It’s crucial to note that banks and other financial institutions (FIs) may be inclined to offer personal loan amounts ranging from two to six times your monthly income. 

Let’s illustrate this with an example: Imagine Mr Wong has a monthly income of $6,000 and currently has no outstanding unsecured debts. In this scenario, he could potentially secure personal loans amounting to a maximum of $36,000. 

Mr Wong could opt to obtain this amount as six separate loans of $6,000 each or, alternatively, as two loans of $18,000, depending on the lender’s policies and other variable factors taken into consideration at the time of application. 

In essence, it is feasible to obtain multiple personal loans, provided that you have not surpassed the borrowing limit prescribed by MAS. 

Things to Take Into Account When Taking Out a Personal Loan

It is crucial to consider the following criteria both before and after submitting your loan application in order to maximize your chances of being approved for the personal loan that will best serve to satisfy your financial requirements. 

Interest Rates 

There is a wide range of possibilities when it comes to the interest rates attached to personal loans. It is recommended to carry out extensive research and choose a lender who can provide personal loans in Singapore at interest rates that are as low as possible. This option could result in a significant decrease in the total cost of your loan. 

Tenure of the Loan 

The amount of time that a borrower has to make their monthly payments is referred to as the loan’s tenure. Choose a loan term that is compatible with your ability to repay the loan in a comfortable manner given your financial situation. 

Be wary of loans with overly extended tenures, as this might lead to greater overall interest payments made throughout the course of the loan. There is a possibility that certain loan providers would demand a minimum loan term and will also levy costs for prepayment of the loan. Acquire a working knowledge of these concepts. 

Taxes and Other Costs 

Investigate the fee schedule that is related to the loan. Processing fees are charged by the majority of lenders, and they normally range from 2% to 3% of the total loan amount. 

In addition to processing fees, it is important to ask about any other potential charges that may apply, such as late payment fees, cancellation fees, and early repayment fees. To minimize unanticipated financial obligations, it is essential to get an understanding of these costs. 

Strategy for the Payment of Debt 

It is absolutely necessary to make certain that you have a detailed strategy for paying back the amount of the loan that you have borrowed. If you are unable to satisfy your repayment commitments, this could lead to the accumulation of further debt, which could have a detrimental influence on your capacity to maintain your current standard of living. 

Check to see if your income is consistent and high enough to handle the monthly payments on the loan without putting pressure on your finances. In addition, you should evaluate your current financial commitments to determine whether or not you will be able to successfully handle the new loan in addition to the existing obligations. 

Checking Different Options 

Evaluate any other funding possibilities to see if any of them might better meet your requirements before you make a final decision. 

For instance, if you want to upgrade your home, rather than applying for a personal loan, you may look into the potential of obtaining a renovation loan, which is designed exclusively for home improvement projects. Examine your options for student loans specifically tailored for educational finance if you need money for costs associated with your education. 

If you give these factors some thought both before and after applying for a personal loan, you will be in a better position to make an educated financial choice that is in line with both your long-term objectives and your current level of financial security. 

Where To Submit Your Application

Personal loans can be obtained in Singapore through a variety of institutions, including banks and licensed money lenders; each of these alternatives comes with its own individual set of benefits and considerations. 


Banks adhere to strict eligibility standards, and it is often required of loan applicants that they have a strong credit score in order for the bank to approve the loan. When compared to the procedures used by money lenders, the approval process utilised by banks can be longer. One of the most significant advantages, on the other hand, is the opportunity to obtain a loan for a greater sum. 

Licensed Money Lenders  

Licensed money lenders are some of the most advantageous lending options available in Singapore as a result of their laxer regulations and more expedient approval processes. When applying with money lenders, the likelihood of being rejected is typically smaller than with other types of lenders. In addition, money lenders frequently provide shorter repayment periods, which results in reduced overall interest payments throughout the course of the agreement’s duration. 

Additionally, licensed money lenders may be more flexible in relation to income restrictions, making it feasible for persons whose earnings are below the level stated by some banks (usually “at least $20,000”) to still receive loans. This is because licensed money lenders are required to be regulated by the government. However, it is essential to keep in mind that the loan amounts that may be obtained from moneylenders are likely to be, on the whole, slightly less than what banks are able to provide. 

Your individual financial status, creditworthiness, and the amount of money you need from a loan are all factors that should be considered when making a decision between licensed money lenders and banks. In conclusion, both types of financial institutions offer their own set of benefits, and the option you select should be based on those factors. When looking for the most appropriate personal loan in Singapore, it is essential to give careful thought to both your requirements and the available possibilities. 

Get Started Today With The Most Appropriate Personal Loan For Your Preferences

Determining the exact amount of personal loan you can acquire in Singapore hinges on various factors, encompassing the type of loan, the intended purpose, and additional considerations assessed by lenders. 

If you’re seeking the most favourable, lowest-interest personal loans in Singapore, MoneyIQ provides a go-to loan matching platform. Find the best loan offer in minutes.  

Published On: September 21st, 2023

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