At times, it can get difficult to obtain a personal loan with a low income. However, you do not need to worry as we will tell you how you can get a personal loan for low income Singapore. The following points will therefore ease your process of getting a personal loan in Singapore.
How can you make it possible to get a personal loan with a low income in Singapore?
If you want a personal loan with a low income, you will need to take loans from a licensed money lender interest rate Singapore. For this purpose, you will have to consider the following factors.
- History of borrowing loans from other money lenders
- Rate of interest
- Meeting the minimum income requirement and eligibility criteria for which you have to be above the age of eighteen
- Proof of income and other documents related to work
A money lender will offer you a personal loan in Singapore with low-interest rates. You will require seeing whether you have any outstanding loans with licensed money lenders. For this, you will have to share details of borrowing limit, records of repayment along with the amount that you had borrowed.
In case you have had borrowed from any licensed money lender in Singapore, you will need to make sure that you have repaid all your loans. As a result, your moneylender will perceive you as a low-risk borrower. With such a reputation, you will be in a position to get personal loans in Singapore at low-interest rates.
Once you borrow from a licensed moneylender, you will have to clear your payments on time. It will thus ensure that you can get more loans during emergencies easily from licensed money lenders in Singapore.
Things you need to know before you apply for a personal loan with low income in Singapore
- Credit score
Before you make the best personal loan comparison Singapore, you have to take into account your credit score. It is because most money lenders and banks lay priority on it when it comes to providing you with a personal loan in Singapore.
You will thus have to clear all your pending bills. Once you do so, you will be able to show your lender that you are trying to make an effort to improve your credit score.
- Knowing your reason
It is significant that you know your reasons behind taking a personal loan in Singapore. Otherwise, you may end up taking a lot of loans that will become difficult for you to pay off. Thus, to avoid that situation, you need to take personal loans during emergencies such as medical emergencies, funerals, weddings, start of a new business, car repair and renovation costs. It will therefore enable you to take personal loans only when you need them on an urgent basis.
- Additional fees
Sometimes you may have to pay additional fees with your personal loan, some of which we have listed below for your convenience.
- Early repayment fee
- Annual fees
- Initial admin fee
- Late payment fees
- Interest rate
You have to understand how interest rates work before taking a personal loan with a low income in Singapore. For instance, AR stands for the rate that gets calculated from the initial amount of your loan. ER is the rate of reduction of your repayment amount gradually.
- Maximum amount of loans
With your low income, you also have to figure out the maximum amount of loan that you can apply for. Some of the things that affect your maximum personal loan amount are as follows.
- Monthly income
- Credit score
- Relationship with your lender
Banks in Singapore can give you a personal loan amount that can be ten times the amount that you earn each month. However, your monthly income must be somewhere around twenty thousand to thirty thousand dollars. On the other hand, licensed money lenders in Singapore usually do not have any such limit, and they can provide you with six times more of your monthly earnings.
- Speed of approval
If you have important financial needs, you will need to get hands-on with your personal loan as soon as possible. However, in cases of emergency, your moneylender or bank will offer you a personal loan of a low amount. Thus, you must make sure that you have adequate time on your hands when you are opting to get a personal loan in Singapore from a licensed money lender.