Complete Guide to Unsecured Personal Loan in Singapore?

A personal loan in Singapore is an unsecured type of borrowing, meaning you don’t need to provide any assets like property or a car as security. It’s commonly used to manage expenses such as home renovations, medical bills, weddings, or consolidating existing debts.

When you take a personal loan from a bank or licensed moneylender, you’ll receive a fixed amount of money and agree to repay it over a set period, usually with monthly instalments. The interest rate and repayment terms are clearly stated in the loan agreement and are based on factors like your income, credit score, and how much you’re borrowing.

In Singapore, it’s important to borrow from licensed financial institutions and compare rates across banks to find a plan that suits your needs and repayment ability.

Applying for a personal loan in Singapore through a traditional bank presents many restrictions, including stricter eligibility criteria, longer processing times and higher chances of rejection. Your credit score and income weigh heavily on the bank’s decision to offer you a personal loan.

On the other hand, licensed moneylenders in Singapore can give you a personal loan with low interest rates, a convenient online application process and more flexibility. At Quick Loan, we welcome applications from anyone aged 18 and above with a minimum income of SGD1,800 and the required documentation according to their citizenship status.

You can access a quick cash loan for emergencies or secure funds for major expenses like medical bills.

All licensed moneylenders in Singapore are subject to the Moneylenders Act, ensuring that we adhere to confidentiality laws and have strict limits on interest rates, fees and other charges. You can be sure that all loans and processes at Quick Loan are legal and carefully regulated.

When you apply for a urgent cash loan with licensed moneylenders in Singapore, you can expect a faster personal loan approval process compared to traditional banks. At Quick Loan, you can look forward to accessing your funds within 30 minutes.

You can also expect a lower rejection rate for your application since moneylenders are more likely to approve your loan, even if you have a bad credit score. Quick Loan lets you access personal loan instant approval service and other options. These include payday loans to help you meet those expenses that cannot wait.

Yes, you can qualify for a instant personal loan as a foreigner in Singapore. All you need to do is ensure that you possess an S Pass or Employment Pass with 6 months of validity.

To apply for a personal loan for foreigners in Singapore, you must present these with your passport, along with proof of residency, payslips for the last three months, a bank token, your employment contract and your staff card.

Unlike banks, licensed moneylenders have minimal requirements for expats applying for personal loans. Moneylenders also have faster loan processing times, meaning you can get your money within the same day to cover any urgent needs. Alternatively, you may apply for our foreigner loan with a minimum monthly salary of SGD3,400 with no guarantor required. You can look forward to flexible repayment conditions with low effective interest rates if your loan is approved.

You can take out a personal loan even with an unfavourable credit score. You may have trouble qualifying for a traditional bank loan, where poor credit indicates a high risk loan candidate. However, licensed moneylenders in Singapore are more lenient with applicants’ credit history.

At Quick Loan, for example, our requirements for loan applications are minimal and straightforward. If you need cash urgently, legitimate licensed moneylenders like us are an excellent alternative to banks.

We’ll help you find a loan that works best for your unique situation, such as funds for big-ticket items like education.

The minimum requirements for applying for a personal loan in Singapore depend primarily on your citizenship, income level and age. Quick Loan requires you to be at least 18 years of age with a minimum salary of SGD1,800 to qualify for a online personal loan.

Singapore banks have stricter eligibility conditions and income level requirements. However, non-bank loan requirements tend to be much more lenient, making licensed moneylenders a reliable alternative if you cannot meet a bank’s prerequisites or require cash on top of what banks have offered you.

At Quick Loan, you can look forward to a simple and speedy approval process once you’ve met our requirements for a personal loan. You can also apply for a quick loan or licensed moneylender loan with us to secure urgent funds.

Here at Quick Loan, no collateral or third-party guarantor is needed for your application for a personal loan in Singapore. Unlike Singaporean banks, licensed moneylenders tend to favour personal loans that are flexible and suitable to your needs in terms of repayment.

Yes. Personal loans are meant to cater to a variety of financial needs, from debt consolidation on pending bills, medical emergencies, supporting your renovation works at your new place, or boosting your cash flow at your new business.

At Quick Loan, we aim to customise our personal loans to your requirements, so that everyone gets the best out of their package, whether it may be for that special day with your loved one, or providing you that extra capital for a worthwhile investment.

Should you happen to miss your payment for your personal loan with Quick Loan, please contact us as soon as you are able. As late payments will detrimentally affect your credit score, and also incur unwanted additional charges, we would similarly like to avoid such a scenario and hope to work with you to see if we can find a mutually beneficially solution together.

1. Type of Loan
   • Unsecured Loans: You don’t need to offer anything valuable, like your house or car, as collateral. However, these loans often have higher interest rates because the lender takes on more risk.
   • Secured Loans: You need to provide something valuable (like property or a vehicle) as collateral. These loans usually offer higher borrowing limits and lower interest rates because the lender has something to fall back on if you can’t repay. But if you don’t pay, they can take your collateral.
2. Interest Rates & Fees
   Interest rates directly affect how much you’ll pay each month, so it’s important to shop around to find the best deal.

   Be mindful of any extra fees, like:

   • Origination Fees: Fees for setting up the loan.
   • Service Fees: Charges for maintaining your loan account.
   • Underwriting Fees: Costs for reviewing and approving the loan.
3. Loan Tenure
   The loan tenure (how long you have to repay) affects the total cost of your loan. A shorter tenure means less interest paid over time. Choose a loan tenure that fits your budget, so you can comfortably make your payments.
4. Your Financial Situation
   Before taking out a loan, think about your financial situation. Look at your income, expenses, and any other debts to figure out how much you can afford to borrow and repay. Only borrow what you really need and can comfortably pay back, so you avoid financial stress later.

To apply for a personal loan in Singapore, the required documents differ based on whether you’re a Singaporean/PR or a foreigner:

For Singaporeans/PRs, you will need:

• NRIC (National Registration Identity Card)
• Singpass (for identity verification)

If you’re renting:

• Tenancy Agreement
• Proof of Address (e.g., recent phone bill or utility bill)
• Payslips from the last three months (if available)
• Bank Token (for secure transactions)

For Foreigners, the required documents include:

• S Pass or Employment Pass
• Passport
• Residence Information:
• Phone Bill or Utility Bill (as proof of address)
• Tenancy Agreement
• Payslips from the last three months (if available)
• Bank Token
• Employment Contract
• Staff Card (if applicable)

The personal loan process with Quick Loan is quick and easy:

Apply: Submit your application online with Singpass Myinfo
Free Consultation & Agreement: Discuss loan options in store and sign your loan agreement
Receive Cash: Get your loan disbursed directly into your bank account or receive cash within 20 minutes!

Yes! You can apply for a personal loan with Quick Loan even if you have existing loans with other moneylenders, as long as you meet the necessary criteria for approval. However, keep in mind that having existing loans may affect your eligibility or the loan amount you can receive, as it will be considered as part of your overall financial situation.

Quick Loan will evaluate your current debt levels and ability to repay the new loan, so it’s important to ensure you can manage the additional repayment alongside your existing obligations. We may also assess your income and credit history to determine the loan terms.

Yes, it is possible to apply for a personal loan with Quick Loan even if you have a poor credit rating. However, approval may depend on several factors such as your current income, repayment capacity, and existing debt levels. As a licensed moneylender, we have more flexible criteria compared to banks, and are more likely to approve loans for individuals with less-than-ideal credit scores.

It’s important to note that while your credit score may not be the primary factor, Quick Loan will still assess your financial situation to determine whether you can afford the loan and meet repayment terms.

No, your loan documents will not be mailed to your home unless you have requested for it. Quick Loan prioritizes digital communication for our application and approval process, allowing you to receive all necessary information via email. This helps ensure security, convenience, and speed in processing your loan.

At Quick Loan, there are no penalties for early repayment or full early settlement of a personal loan

If you decide to pay off your loan early, you will only need to repay the outstanding principal amount along with any charges that has accrued until the date of settlement.

Personal loans can have both positive and negative effects on your credit score, depending on how punctual your loan repayments are:

Positive Effects:

• Timely Payments: If you make your loan payments on time and in full, this positive behavior will reflect well on your credit report, potentially improving your credit score over time.
• Debt-to-Income Ratio: Successfully managing your personal loan can show that you are capable of handling multiple types of credit, which may improve your overall credit profile.

Negative Effects:

• Credit Inquiry Impact: When you apply for a personal loan, the lender may perform a hard inquiry (credit check), which can temporarily lower your credit score by a few points.
• Increased Debt: If you don’t manage the loan responsibly, it can increase your debt load, leading to missed payments or accumulating debt, which could negatively impact your credit score.

To be eligible for a personal loan in Singapore, you generally need to meet certain criteria, which can vary slightly depending on whether you’re applying through a bank or a licensed moneylender. Here’s a general overview of the eligibility requirements:

For Singaporeans and Permanent Residents (PRs):

• Age: You must be at least 18 years old at the time of loan repayment.
• Income: Minimum annual income of SGD 20,000 for salaried employees. If self-employed, your annual income should be SGD 30,000 or more.
• Employment Status: You should have a stable income and employment. If you’re salaried, providing recent pay slips is usually required.
• Creditworthiness: Your credit score and debt-to-income ratio will be reviewed, and those with a history of timely repayments are more likely to qualify.

For Foreigners:

• Visa Status: You must have a valid Employment Pass or S Pass.
• Income: Your minimum income requirement is generally SGD $40,000 annually.
• Proof of Residence: Foreigners must also provide proof of their residence in Singapore (e.g., utility bills, tenancy agreements).
• Additional Documents: Foreigners will need to submit extra documentation, such as a passport, employment contract, and staff card (if applicable).

Other Considerations:

• Existing Debts: If you already have outstanding loans with other financial institutions, it may affect your eligibility.
• Credit Rating: Your credit score plays a significant role. Lenders assess your ability to repay the loan based on your financial standing.

Taking out a personal loan in Singapore can offer financial flexibility, but it comes with certain risks, including:

• High-Interest Rates: If you have a poor credit score, you may face higher interest rates, which could significantly increase the total amount you repay.
• Debt Accumulation: If you’re already struggling financially, taking on more debt can lead to greater financial stress. Missing payments can also result in late fees and higher interest.
• Impact on Credit Score: Failing to repay the loan on time can negatively affect your credit score. On the other hand, responsible management can improve your credit history.
• Loan Repayment Pressure: The set repayment schedule could put a strain on your monthly budget, especially if your financial situation changes unexpectedly (such as job loss or medical emergencies).

In Singapore, personal loans generally come with the following terms:

Minimum Loan Tenure: Minimum loan tenure differs from 1 week to 1 month depending on lenders.

Maximum Loan Tenure: The maximum loan tenure is often 5 years, depending on the lender. Longer tenures may be available for larger loan amounts but often come with higher total interest costs.

To choose the best personal loan for your situation in Singapore, consider these factors:

• Interest Rates: Compare the interest rates from different lenders. Look for fixed rates (consistent payments) if you prefer stability or variable rates (which may change) if you’re comfortable with fluctuations.
• Fees and Charges: Ensure you understand any additional fees such as processing fees, early repayment fees, or late payment charges. Some lenders offer loans with no additional fees, making them more affordable in the long run.
• Loan Amount and Tenure: Make sure the loan amount is appropriate for your needs and that the loan tenure fits within your budget. A longer repayment period may make it easier to repay, but it could also increase the total interest paid.
• Repayment Flexibility: Some lenders allow you to make early repayments without penalties. Check if you can adjust repayment terms if necessary.
• Eligibility Criteria: Verify if you meet the lender’s eligibility requirements, such as income levels, credit score, and employment status.