When tough financial situations arise, this can cause you so much stress and anxiety. There is the concern on where to find a reliable source of extra funds, which of course, you need to get fast. After all, your expenses and unpaid bills cannot wait any longer. Otherwise, you run the risk of enduring massive penalties and fees for delayed payment made for these bills. Then, your stress level just increases even more!
But there is a way out of your money problems. By taking out a personal loan Singapore, you no longer have to fear not being able to pay your debts on time. There is also no need to approach family members and friends and go through that awkward experience of borrowing money from them. A personal loan may be just what you need in times like these, which can help you address your existing financial concerns in an efficient and practical manner. However, there are still some things you should think about before you start submitting your money lender Singapore loan application form.
The following are among the important qualifications that you need to keep in mind to increase your chances of being approved of your personal loan.
1. Age
This is a basic requirement that money lenders and banks look into when screening loan applicants. They want to make sure that the potential borrower is within a reasonable age bracket as this impacts their capability to repay the loan according to the deadline stipulated in the contract. Generally, young borrowers under 20 years of age, as well as those who have just recently started their employment are not the most favorable applicants for a personal loan. This is due to the fact that they barely have any credit history to show to these financing institutions.
In the same way, borrowers who are in their retirement age or 65 years of age and above are not the most preferred age group for loans. So, applicants who are within a reasonable age may have a higher chance of being approved, as long as they meet the other requirements set by the lender.
2. Citizenship
In Singapore, banks and financing institutions look into the citizenship of the applicant during the screening process. For instance, banks generally prefer to approve applicants who are either Singapore citizens, as well Permanent Residents. This is why they will require you to present proof of your citizenship when you apply for a loan.
But this does not mean that you can never apply for a loan if you are a foreigner. In fact, licensed money lenders offer a foreigner loan to non-Singaporeans or Permanent Citizens. The most important thing is that you have all the documents necessary to have your application processed. Some of the basic requirements include your passport, proof of employment, and payslips for the past three months or as indicated by the money lenders. There may be additional paperwork for you to accomplish, so be sure to have these ready whenever required by the lending institution.
3. Income
Naturally, money lenders want to make sure that you are capable of repaying your loan on time. However, they do offer low income loan as well! Also, whether you are employed or have a business in Singapore, you should be able to present a valid and updated proof of your salary to the financing institution that you are dealing with. This may be in the form of current payslips and other documents that state your monthly or annual income.
4. Credit Score
It is a must that you work on building your credit score as soon as possible. This is an essential aspect that financing institutions look into when they evaluate candidates for a personal loan. In particular, banks have strict requirements when it comes to approving applicants of a loan. They check the credit score as this helps determine the payment capability of the borrower. So, if you have a bad credit, there is a huge chance that your application will be denied.
For instance, at OCBS, you can only qualify for a loan at a low rate if your Risk Grade is at least AA. You may obtain a copy of your updated credit report from the Credit Bureau Singapore, but you will need to pay $6.42 for the fee to receive this document.
5. Existing Debt
Before you apply for a loan, it is best that you first take a look at your existing debts. Having so many loans can only put so much stress on you since you will end up worrying about repaying all of these. Instead of being able to save money from your income, your salary may only go to your debt payments, which can be very stressful on your part. This is why it is ideal that you pay off your existing debts first before taking out another one.
6. Employment Duration
How long have you been working at your present company? Most financing institutions require applicants to be employed for at least 3 to 4 months, so you can have a better chance at being approved of a personal loan. This also helps establish your stability in your present job, which impacts your ability to repay your debts on time.
7. Co-Borrower Details
When you apply for a loan, you may indicate in the application form a co-borrower that can boost your chances of approval. But keep in mind that you cannot simply put in there any person whom you know. The individual must be a Singapore Citizen or a Permanent Resident, preferably with a good credit rating.
Additional Information You Need to Know
There are various instances when you may find yourself in need of a certain amount of money. These situations include retrenchment, a sudden illness or accident, and emergencies that will leave you with financial concerns when you have inadequate insurance coverage or bank savings. This is why if you find yourself in such situation, you may consider taking out a personal loan to obtain the funds you need. The loan can cover your urgent expenses without requiring you to approach a family member or friend for extra money.
In case you have a poor credit score, your chances of being approved may be slim. Yet, there is no need to worry because there are other ways to go around this issue and get the money you need. After all, a bank is not the only institution that can provide you with the amount of money you need. One thing you can do is to apply for a smaller loan from a legal money lender in Singapore. Just be sure you have all the paperwork needed, as well as no existing debts that will only further add to your stress.
Once you are approved of a loan, make it a point to review the contract before you affix your signature. The last thing you want is to go through additional concerns because of some hidden fees and charges that you are not aware of right from the start. Be sure to check the payment schedule, too, and determine if it works for you or not. Paying your loans on time can spare you from penalties that add to the principal amount loaned.
Before you go to any reliable moneylenders sg, make it a point to check the reputation and credibility of the lender before you choose to apply for a loan. Be sure the lender has a valid license and permit to operate their business. You may also read reviews from actual clients who have worked with the money lenders, so you can have an idea about the quality of service they provide to borrowers. Shopping around and comparing rates and terms of various licensed money lenders can also increase your chances of getting the best deals that you deserve while ensuring the speedy and convenient processing of your loan application.
