How to get personal loans in Singapore?
Singapore is known for its thriving fintech start-ups in recent years.
These fintech startups provide financial, insurance and personal loans to Singaporeans and expats living in Singapore. Personal bank loans in Singapore are an instant remedy to obscure situations today. Many people are eye-ing towards reliable, safe and transparent personal legal banking loans.
Another advantage of a personal loan: Fixed repayment. The regulatory environment is getting increasingly favourable, adding to the exponential growth in getting legal personal loan Singapore. In this article we will find out how to apply for legal personal loan in Singapore:
What is a legal personal loan and why does it matter?
Personal loan is applying for a loan at a reputable financial lender organisation and getting the money deposited into your bank account. And then monthly payments of principal and interest throughout the term of the loan.
The very first advantage of personal loans is their accessibility on online platforms. It has become way more popular due to its flexibility. As estimated digital lending will constitute a $1 trillion economy in the next 5 years. Instead of using credit cards that offer high-interest rates, people are opting for personal loans with comparably lower credit interest rates.
Poor financial discipline can cause negative effects if you don’t repay the legal bank personal loans on time. So before diving into how to get one let’s understand the prerequisites of applying for a legal personal loan Singapore:
How to apply for a legal personal loan in Singapore?
Firstly, review your credit score. Your credit score will determine your creditworthiness and give a general idea about where it stands. The credit scores and reports are issued by the regulatory body known as the credit bureau of Singapore.
Your past transactions, the time you took for payments and the amount you owed will tell whether you can apply for the personal loan or not. Avoid penalties, missed bill payments and other noob mistakes to maintain a good credit score.
These factors not only get your legal personal loan Singapore approved but also decide how much you can borrow.
Secondly, they’ll have a look at your monthly income to analyze how much loan you can presumably borrow. Following the “Don’t bite off than you can chew” analogy, avoiding unnecessary debts.
Where to apply personal banking loans in Singapore?
When we talk about low-interest rates and a good amount of time for repaying personal loans: CIMB cashLite personal loan, OCBC Personal loan and HSBC personal loan are higher in the hierarchy. There are other banks to like: Citi Quick Cash Personal loan, DBS/POSB Cash Personal loan and Standard Chartered CashOne personal Loan.
These banks provide the best personal loans with low-interest rates as low as
$20,000 on each 3-year tenor.
1. CIMB CashLite personal Loan
In CIMB (Commerce International Merchant Bankers Berhad) Cash Lite personal loan you get 3.5% flat annual interest rates, 6.6 % effective interest rate per annum. And 0 Rs processing fee required and with a monthly payment of $ 614.
2. OCBC personal loan
OCBC (Oversea-Chinese Banking Corp) provides a 3.5% flat annual interest rate, 7.27 %, a $200 processing fee and a monthly payment of $614.
3. HSBC personal loan
HSBC (Hongkong and Shanghai Banking Corporation Limited) provides flat annual interest rates of 3.7%, effective interest rates per annum is 7 % with a $0 processing fee and monthly payments of $617.
4. Citi Quick cash personal loan
CitiQuick cash provides 3.99% flat annual interest rates, 7.50% of effective interest rates per annum with a $0 processing fee. And monthly payments of $622.
5. DBS/POSB cash personal loan
Development Bank of Singapore/ Post Office Savings Bank provides 3.88% of the flat annual interest rate, 7.90% of effective interest rate with a processing fee of $200 and monthly payment of $620.
Standard chartered bank CashOne personal loan
Standard Chartered Bank cashOne personal loan provides a 3.48% flat annual interest rate, 7.99% effective interest rate with a processing fee of $199 and monthly payment of $ 614.
What documents do you need to apply for a personal bank loan in singapore?
Though Singapore is an amazing place to apply for bank loans, there are some prior documents submissions to make:
- Proof of identity: Singaporean(Identity Card) or Employment pass, Passport.
- Address Proof: Residential address and utility bills.
- Income proof of the last 12 months, recent tax notice or salary credited from the companies.
Typically, banks will lend legal personal banking loans depending on a person’s annual income. Hence if you are not a native Singaporean then laws for you differ. A non-Singaporean resident shall have an annual income of S$40,000 to S$60,000. The lesser the annual income the more the interest rates on legal personal loans Singapore.
Conclusion
Finally, throughout the article you’ve understood how to and from where to apply for a legal personal loan Singapore. Last but not the least, a person needs to be at least 21 years of age to apply for a personal bank loan in Singapore and max 65 years old. If you meet all the requisites, then Voila! You can successfully get a personal bank loan.
