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What to look out for when finding the best personal loan in Singapore

What to look out for when finding the best personal loan in Singapore

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Are you stuck in a rut, constantly having to pay off steep monthly overheads and in need of urgent financial assistance? If you are, the first thing you should do is relax, calm down, and then do some research on getting legitimate personal loans. Compared to banks, licensed money lenders in Singapore can offer lump sum cash during emergencies and have flexible repayment options so you can pay it off according to your needs. Here are some pointers on what you should look out for when finding the best personal loan in Singapore.

The types of personal loans

In general, there are two major types of personal loans; secured and unsecured personal loans.
Usually provided by banks, the secured loan type is for those keen on borrowing a larger sum of money with a longer duration of repayment in terms of years. This could include personal loans for a house. With a secured loan, you most probably need a guarantor or sign off on a piece of collateral (your house for example) in case you are unable to pay off the loan.

The unsecured loan on the other hand, is a short term loan and is often the more popular one out of the two. It’s usually taken for emergency situations where borrowers need instant cash like an emergency fund. Unsecured loans also means that you would not need a guarantor or attach a collateral in the event you are unable to pay off the loan.

As personal loans are often used for covering unforeseen circumstances, licensed money lenders usually offer low-interest and high approval rates and the loan value can range from $300 to $10,000. The amount of loan you apply for that gets approved is subject to the length of duration of work in your company, as well as your remuneration.

The best personal loans to get have the lowest interest rate. If you can address your needs with the cheapest loan possible, that would be highly ideal as personal loan plans have shorter payment terms than loans like home renovation loans.

How do personal loans work

To get a legal loan in Singapore, you have to first check if the money lender is registered under the Ministry of Law. The ministry’s website provides the full list of licensed money lenders that you can check against.  If you’re interested to find out where to get the cheapest personal loan in Singapore, research and enquire from the list.  The legal ones are usually made of a team of representatives who are very responsive and are able to process loans in less than 30 minutes.

During walkins, the representative should be able to assist you in half an hour and they should answer in detail any queries and concerns you might have before you sign the contract.

Requirements to get a personal loan

If you are a Singaporean or permanent resident, you have to be at least 18 years old to apply. When applying, you would need to provide your NRIC and a Singpass account ready to do authentication.

For foreigners in Singapore, you need to be at least 18 years old to apply and have to be living and working in Singapore. In terms of documents, you need to show proof that you are employed in Singapore, for example e-pass, work permit or S-Pass. You also need your passport, proof of address in Singapore; this could be your utility bills connected to your address or a tenancy agreement. Additionally, you need to show proof of allowance or income in the form of monthly pay slips in the last 3 months.

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