Personal loans are ideal when you need extra money to use in consolidating high-interest debt, improving your home or doing events. When they are used wisely, they are capable of ensuring you have sufficient funds for your financial matters, without having to place your property or assets as collateral.

A personal loan is an installment loan that offers fixed money that comes in a lump sum. In most cases, personal loans are unsecured, meaning there is no need for collateral in securing funds. On the other hand, the repayment loan period varies – some lenders allow a duration 30 days, two years, while some can go up to five years. Meanwhile, it’s also a quick and easy process; so, if you’re ever in need of a fast approval loan – you can consider applying for a personal loan considering its flexibility as well.

Read on to find out the ideal situation you can consider using a personal loan.

Consolidating credit cards

If you own several cards that are being charged highly, a personal loan can also serve as a debt consolidation loan, as it can consolidate any charges in a monthly payment. Additionally, the interest rate on your consolidated loan is usually lower, in regards to the annual percentage rates on credit cards. As such, it’ll allow you to pay it off faster.

Financing a purchase

When you use a personal loan to finance a purchase, all that you need to know is whether it is a need or a want. If you proceed to take a personal loan and pay in cash to a seller, it is a great deal as opposed to using a credit card with high interest or financing through the seller. Similarly, it’s a lot more ideal than maxing out your credit card or relying on life-term savings to settle personal purchases; be it for a home renovation or relocation. Hence, use a personal loan to cover any outlying amounts instead.

Fund an event

An event like a wedding may require you to consider applying for a personal loan; especially when you factor in all related charges that you’ll be unable to pay off in a month with your credit card alone. As such, using a personal loan to fund a big event like a wedding helps you saves a considerable amount as long as it is rated lower than a credit card. All that is required on your end is careful budget planning, the appropriate loan amount and payment period selection, and you’re all set on getting a personal loan.

Improving your credit score

With a personal loan, you may potentially improve your credit score as applying for a personal loan may help your “credit mix”. Especially if you’re both in need of extra cash and possess a history of missed repayments, getting a personal loan and repaying it in time can boost your credit score.

This is due to the reason being that you’re responsible, have the ability to manage different types of loans at a time, and repay them altogether. Also, it can lower credit utilisation ratio. If you use a lesser amount of the total credit card, you score better. A personal loan, therefore, increases your available total amount. Also, when the loan is paid on time, your credit score improves.

These are just a few out of the many different situations where you can consider getting a personal loan to meet your financial needs. With a personal loan’s fixed interest rates, you’re able to pay off the loan comfortably with ease no matter the financial matter you’ll need the loan for.

If you are the owner of a business in Singapore, at some point, you might need to finance your own business. There are various business loans in Singapore that are offered to local business owners to help in expanding their businesses. These loans are typically used for addressing business needs – such as financing inventory purchases, renting, or purchasing commercial property.

There are different types of businesses and loans in Singapore that can help your business expand or even get out of a rut. In this guide, you will be able to know how to apply for a loan and get instant loan approval in Singapore. However, there is a process and several criteria to be met before being able to receive the business loan. Therefore, read on for a step-by-step guide on the procedure that you have to go through before your business loan application is approved.

How the application process goes

Where to apply for a business loan

A business loan can be applied in two ways. Firstly, it can be applied through a financial institution, moneylender, private lender or a family office. Alternatively, banks also provide an online application for you to apply for the loan. If you are applying for your business loan online, you can fill out your online application by logging in using your Myinfo login and NRIC.

Call up your financial institution first

The relationship manager at the bank or financial institution has to know more about your company or business before being able to help you approve the loan. For example, it is essential that they are aware of your company’s directors, industry and business type.

At the same time, it is also vital to know the financial situation of your company. This allows the relationship manager to assist your business if you are experiencing any financial issues like an outstanding loan or debt.

The required documents

To receive your loan, five main documents have to be submitted and verified. In some cases, some financial institutions might request for extra documents like upcoming contracts to have a better understanding of your company’s situation.

A call back by the financial institution

After submitting your documents and details, you will receive a call back from the financial institution. This is when you know that your documents have been successfully received.

Process for approval

Upon receiving the essential documents, the relationship manager then submits it for approval. All you have to do is is wait patiently for an update on the approval.

Business loan proposal presentation

Upon receiving the approval, a relationship manager who is handling your business loan case will come up with proposals as well as solutions regarding your business needs and then hand it over to you.

Site visit

In certain cases, the relationship manager may insist on visiting the site of your business or the premises where it is situated. This is solely for the purposes of understanding the operational systems and processes of your business.

Signing documents

Upon the site visit, you are close to receiving the business loan. All that is left is for you to sign the loan agreement documents. Before putting any signature on the documents, it is critical that you look through key factors in the document like the amount of loan, the interest rate, rate type, defaults and penalties.

Disbursement of money

The final stage is the disbursement of funds. This usually happens in the form of FAST disbursements to a corporate bank account.

Required documents when applying for a business loan

Before applying for a business loan in Singapore, it is necessary to have the correct documents in order to receive the right business loan. There are basically five documents that you need:

• ACRA Business profile Information which shows your business profile information.
• Current 2 Years Notice of Assessment (NOA) of all Directors for the purpose of knowing declared incomes.
• Report of all most recent Credit Bureau Singapore (CBS) directors. This is to help financiers view the business’s repayment histories, current loan and any outstanding unsecured loan.
• Recent 2 Years Company’s Financial Statements. This is to understand the company’s performance history. The may require current 2 years profit and loss statements as well as balance sheets.
• Most recent 6 months Bank Statements to understand company’s daily bank account proceedings.

During the process of the loan approval getting approved, you might need to present evidence like the Accounts Receivables Aging List to your relationship manager. Understanding and adhering to these guidelines should ensure that you are susceptible to fast approval loans in Singapore.

A credit score is calculated by putting together a borrower’s credit details such as the types of credit, delinquencies and credit mix. In Singapore, the Credit Bureau of Singapore issues credit scores ranging from 1,000-2,000, in which licensed moneylenders will use to evaluate whether an individual is at high risk of paying back the loan.

Here are a few additional and important factors on how a high credit score is vital in obtaining a personal loan.

1. An indication of your credit health

Your credit health shows your ability to repay the debt or loan that you owe without defaulting. In contrast, a low credit score could raise a red flag to the licensed moneylender, where they might feel that it is risky and unsafe to lend you money, reducing your chance of acquiring the loan.

According to the Credit Bureau of Singapore, the higher your credit score, the less likely you will default on the loan payment. This can reduce the risk of the licensed moneylender from losing money to defaulters. Therefore, if you have a high credit score, the licensed moneylender will most likely grant you the loan.

2. Quick loan approval

The Credit Bureau shows that the grade of the credit score depicts the probability of the individual defaulting on their payments. For instance, AA is the highest credit score, whereas BB and CC grades show delinquency in late repayments. DD or lower grade levels indicate loan defaulting where a bank or licensed moneylender has written off the loan.

Licensed moneylenders are likely to grant your request when your credit score shows that you are highly responsible with credit. Potential licensed moneylenders will also be able to ensure a quick loan approval as your credit score shows that you are trustworthy with your finances.

3. Obtain the best rates

A good credit score ranges from 1,844 to 2,000, in the grades of AA and BB. These scores give you the least probability of defaulting on a payment. They assure the licensed moneylender that you can repay the loan on time and reduce their risk of running losses. This assurance will also encourage the licensed moneylender to offer you an instant cash loan with a much more considerable amount.

With a high credit score, you will also have the option to speak to licensed moneylenders and find the best loan that suits your financial situation. In such cases, you will be able to pick and choose the best loan that is offered with the best interest rates. This way, you may even be able to acquire a loan with a considerable amount compared to what you had in mind.

Conclusion

Your credit score plays an important role when obtaining a loan, such as consolidation loans. Your credit score determines whether licensed moneylenders will grant your loan request, decline, or offer a much smaller loan amount than initially requested.

You should look to maintain a high credit score and pick up good financial habits to increase your chances of acquiring a loan when you need it.

If you are looking to take out a loan, you should research about the factors that could deny you the chance of getting a loan. One crucial factor to consider is your credit score.

Having a good credit score in Singapore can ensure that you will be able to get the best interest rates for your credit card or loans. However, it is important to note that you can fail to secure a loan despite having a good credit score.

To ensure you are fully prepared, here are the top factors you should avoid when getting your loan application approved.

1. Incorrect or incomplete loan application

The information you provide on the loan application plays a significant role in determining your credibility value. Through the information you give, banks or licensed moneylenders will decide whether to offer or reject your loan application.

Your loan request can get rejected if you leave out vital personal or financial information. Thus, read and fill up the application thoroughly. If you forget to provide a copy of your salary certificate, your identification card, or submit an incomplete loan application form, you will be denied the chance to get an instant cash loan.

2. Income and debt

While some credit bureaus might not consider your employment status as a requirement, licensed moneylenders do. They will consider the amount of money that you earn every year along with your current total debt. The information you provide will be used to gauge your ability to repay the loan.

Therefore, you must provide accurate income and debt information. If a licensed moneylender or a bank detects dishonesty in the information that you provide, your loan request will be rejected.

3. Negative credit report

Despite having an excellent credit score, one negative credit report could potentially scare away licensed moneylenders. This shows that you are actively defaulting on your payments and debts, making you a risk for licensed moneylenders to issue loans or credit cards.

Hence, it’s highly important for you to ensure you’re financially stable enough to make your payments on time to avoid any negative credit reports. That way, you will have a better chance of getting your loan application approved.

4. Employment status

Another crucial factor that could cause your loan application to be rejected is your job status or employment stability. Licensed moneylenders in Singapore provide loans to individuals with a stable income or job. While switching jobs from time to time can be a good thing, doing so could dissuade licensed moneylenders from offering you a loan.

If you want to apply for a fast cash loan in Singapore in the future, you should stick to one employer for at least a year before applying. Even with a high paying job, securing a loan when you have not been employed for more than a year can be difficult.

Conclusion

Being turned down after a loan application can add frustration to your financial situation. However, doing the right things can ensure that your financial standing will improve and increase the chances of getting your loan approved. You should keep in mind that loan rejection is not the end of everything. Instead, check and rectify the reasons as to why your loan application was rejected.