The interest that is charged on personal loans is a significant source of revenue for financial organisations like banks, hence providing personal loans is one of their primary goals. However, in order to reduce their exposure to risk, lenders are required to ensure prompt repayment, which compels them to evaluate each loan application based on severe criteria. 

It’s possible that your application for a personal loan won’t be granted, especially if there are discrepancies between your eligibility and the documents you submitted. When applying for a personal loan in Singapore, there are essential considerations you should keep in mind in order to improve your chances of being approved for the money you require. 

How to Increase your Chances of Getting a Personal Loan in Singapore?

Check to See If You Are Eligible

The application for a personal loan must adhere to a number of precise basic standards; if these requirements are not met, the loan request will most likely be denied. 

One of the most common criteria for eligibility is a minimum income requirement, which might vary from lender to lender and is also dependent on your citizenship status. For Singaporeans, banks normally need a minimum annual income of S$20,000 or S$30,000, but the criteria for non-Singaporeans are higher.

On the other hand, alternative lenders such as internet platforms and licensed moneylenders may have less stringent standards regarding a borrower’s income. This suggests that individuals who do not meet the income standards set by banks may find it simpler to acquire personal loans through these channels, as the banks do not use income as a criterion in the approval process. 

Your citizenship status can have an effect on your chances of getting a loan approved in addition to the factors concerning your income. Some loan providers may only lend money to citizens or permanent residents of the country, making it impossible for non-citizens to obtain financing from them. When making an application for a personal loan, it is essential to be aware of all of these considerations, as a result. 

Ensure Your Debt Level is Manageable

In Singapore, borrowers are restricted to unsecured loans totaling up to 12 times their monthly income, encompassing credit card balances and other outstanding loans. If applying for a personal loan would push your total unsecured debt beyond this limit, your loan application might face rejection.

Alternatively, you may only be approved for a reduced loan amount, limited to your personal unsecured loan cap, which might not meet your requirements. 

To secure the desired loan amount, it’s prudent to check your remaining unsecured debt limit. Additionally, consider settling existing credit card balances or other loans to maintain a low and manageable debt level, increasing the likelihood of obtaining the loan you need. 

Read Also: 4 Ways to Get Out of Credit Card Debt in Singapore

Enhance Your Credit Score

Your creditworthiness is often assessed by banks based on your credit rating. A moderate or poor credit rating can result in higher interest rates or, in some cases, lead to the rejection of your personal loan application. 

Fortunately, maintaining a favorable credit rating is within your control. Ensure you consistently meet your debt obligations by paying your loan instalments or credit card bills on time and avoiding carrying a balance. 

Read also: How do you improve your Credit Score?

If you suspect your credit rating may be less than optimal, you can take steps to improve it. Making timely payments over the next several months establishes a pattern of fiscal responsibility, which lenders value and can positively impact your creditworthiness. 

Secure a Co-Signer or Guarantor

Certain loan types, like renovation loans, permit two individuals to serve as joint applicants. With only one applicant needing to meet the loan eligibility criteria, this presents a viable option for obtaining a personal loan even if individual qualifications fall short. 

Alternatively, in some instances, having a loan guarantor is obligatory. This is frequently the case with education loans, where the applicant may struggle to meet the eligibility requirements independently. 

As co-signers and guarantors share responsibility for the loan, it’s essential to engage in open communication about the associated risks before proceeding. 

Restrict Your Loan Amount

Boosting your likelihood of securing a personal loan can be achieved by opting for a smaller loan amount. Larger loans inherently pose more risk to lenders, making them more challenging to obtain. Conversely, smaller loans may be perceived as carrying a lower, more acceptable level of risk, thus increasing the likelihood of approval. 

Adhering to the principle of borrowing only what is necessary ensures your personal loan amount remains modest, preventing you from becoming overly encumbered with debt. Additionally, contemplating debt consolidation can be a strategic approach to maintain manageable levels of indebtedness. 


In conclusion, if you want your financial endeavour to be successful, you need to put into action smart strategies that will increase the possibilities of getting a personal loan in Singapore. If you do this, you will increase the likelihood that you will be approved for the loan.

To put it another way, if you want your endeavour to raise money to be effective, it is very necessary for you to put strategic strategies into action. The subsequent phrase includes all of these various strategies and procedures. It is necessary to have a thorough understanding of the necessity of being able to meet the qualifying conditions, most notably the requirements for the required minimum quantity of income. This understanding is very important because it is a condition that must be met in order to qualify.

Applicants can pave the way for a more streamlined approval procedure by making their existing financial condition in line with the expectations of the lender. This will lay the path for a quicker approval process.  

Efficient debt management and debt-to-income ratio analysis boost approval chances. Exploring options like as joint applications or finding a co-signer might provide additional support. This is especially helpful in situations where individual eligibility might be a barrier. 

In addition to this, making the strategic decision to restrict the amount of the loan that is being requested demonstrates responsibility and makes the application more appealing to potential lenders. Last but not least, it is of the utmost importance to build and keep a good credit rating by making payments on time and engaging in responsible financial behaviour. This not only affects whether or not a loan is approved, but also the conditions that are provided. 

Published On: November 13th, 2023

Share This Story:

Subscribe to our eNewsletter:

Get A Personal Loan Now!

Thank you for your interest! As much as we want to extend our help, the loan offers are NOT available for foreigners in Singapore for the time being.

Please come back and check it out again in the future.

Terms and Conditions

Only 21 years old and above is eligible for loan application.

To preserve the confidentiality of all information you provide to us we maintain the following Privacy Principles.

By clicking "Submit" and providing your personal data, you consent to our loan providers contacting you via the telephone and email and permitting to do a search on the Credit Association Singapore (CAS) web portal for the loan application purpose.

We only collect personal information that we believe to be relevant and required to understand your financial needs.

We will only use any information collected as minimally as possible, mainly to assist us in customising and delivering loan packages that are of interest to our customers.

We will not make unsolicited requests for customer information through email or the telephone, unless customers initiate contact with us.

We have established strict confidentiality standards for safeguarding information on our customers.

Our loan providers will not use or disclose information collected from you other than for the purpose made known to you, authorised by you or required by the Law.

Recent Articles