Every country has its unique laws that guide every process. In Singapore, there are equally certain rules and regulations controlling lending and borrowing. Therefore, you need to know all of the basic guidelines before taking a loan. This will help you stay within the right lane and avoid any penalties. There are certain factors that can help you get instant loan approval in Singapore. There are also other factors that will help in applying for a personal loan or any other types of loans. In a nutshell, here are some of the factors and guidelines to qualify for a loan in Singapore:
As with any other country, Singapore has an age barrier for taking loans. While some countries are stricter and others less strict, Singapore is considered fair in terms of the limits. You need to be between 21 to 65 years old to qualify for a personal loan in this country. If you fall under this bracket, a reputable lender will easily give you a loan based on your annual income and other credit-related factors.
Depending on the specific lender you are dealing with, the annual income can be different. Most of the time, S$30,000 in annual income is the minimum amount a lender would expect you to bear. However, some lenders don’t mind giving loans to those who earn below this amount. In case you are new in Singapore and are not a native, the basic annual income you’ll need if you want to take a loan is around S$40,000 to S$60,000.
Proof of identity
This will help the lender prove that you are a citizen of the country and that you are eligible to get a loan as a native. Basically, you will provide your identity card as proof of your citizenship. Also, in case you don’t have an ID, you can offer your employment pass or passport for easy identification.
You will need to show proof of address so that the lender knows where you reside. This is for purposes of accountability of the loan in question. Here, you can provide documents regarding your residential address. Some of the examples of such documents include utility bills that have your name and address clearly shown.
You will also need to prove how much you earn. It is not just by word of mouth but through proper documentation. You will need to provide your central provident fund for the past twelve months. Also, you can give your contribution history statement or latest income tax notice of assessment. Some lenders may need you to provide your latest payslip so that they can tell how much really gets into your account every month.
Some types of loans require you to have a high credit score so that you can get the loan. Credit scores or otherwise known as credit reports, are calculated based on how efficient you pay back your loans. If you have been taking frequent loans and have a high credit score, the better your chances are for a loan. To be eligible, you need to maintain a high credit report.