Gone are the days when borrowing a loan was frowned upon. In fact, in these changing times, loans not only help when you are going through a financial slump but also contribute towards improving your creditworthiness, albeit, if it’s done the right way. But then, what is the right way? And how can you ensure you’re eligible to borrow a personal loan in Singapore?
Here are a few eligibility criteria that you need to keep in mind while applying for a personal loan in Singapore:
First and foremost, it is important to note that a personal loan is an unsecured type of loan. So, no collateral is required. And that’s why the eligibility criteria matter all the more for the lender. Take a look at this quick list.
Any lender will start with studying your credit report, which includes your credit history and credit score. A good credit score will be obviously preferred. Now the question is, how to get a good rating on this aspect? When you have proven your ability to borrow and repay loans in the past, your credit score improves. Basically, it reflects your repayment capacity.
Next in line is your income. In fact, both – credit score and income are two sides of the same coin. They complement each other. Your income is a direct indicator of your capacity to repay the loan in full. A good income also contributes towards improving your credit score. So, having a stable and secure source of income can be a great advantage to prove your eligibility.
This is a ratio that helps the lender understand how many parts of the borrower’s income can be utilized towards loan repayment. Every lender has their own cut-off point to decide who to lend money to and who to avoid.
These eligibility determiners highlight that a borrower with a considerable income that is stable can be the ideal candidate to lend money. Apart from these, there are other factors like the age limit, appropriate documentation, income proof, and so on.
Now that you have understood that your income is at the heart of this entire process, you may start wondering whether or not you are eligible to get a personal loan. But whether you are a foreigner or a normal income earner or a defaulter, you too can apply for a personal loan. Here’s more:
Foreigners Can Apply Personal Loan
Singapore residents can apply for a personal loan depending on their salary and type of work permit among other factors.
Personal Loan Normal Income Earners
Even normal income earners can apply for a personal loan, irrespective of how much they earn.
Being a defaulter may feel like all doors are closed. But that’s far from true. If your reasons were genuine and you are able to commit to the repayment plan, and unless you are not blacklisted, you can take a chance to reapply for a loan.
If you search ‘apply personal loan’ or ‘personal loan normal income’, you will realise that there are many viable options even for these sections of Singaporean society. So, who is offering loans to these groups?
Banks are quite traditional in their approach and will scrutinize your application to the last penny. Legal moneylenders, however, are more lenient. They are stepping up and making financial aid available to one and all. Read on to find out how a legal moneylender can prove to be of great help if you are worried about your loan eligibility for any reason.
- Have a bad credit report? No problem. A legal moneylender can help you build a good credit score. And they can do this in various ways. You could get a debt consolidation or a personal loan.
- Insufficient income? Again, try a legal moneylender before giving up. Moneylenders will take into consideration any extra income you may be having.
In every case, they may go out of their way to study your bank account statements and determine if you have maintained a stable financial status and what kind of spending habits you display. Once they have confidence in your repayment ability, they will root for you and give you the required support.
So, instead of worrying about your eligibility on the account of creditworthiness or income, approach a licensed moneylender and get their help to chalk out a financial plan for you. After all, when you can build eligibility under expert guidance, why clip your wings?