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Getting A Personal Loan From A Singapore Bank

A personal loan is a sum of money that one can borrow for several purposes. For example, it can utilize the loan to consolidate debt and pay for home renovations. Borrowed funds must be returned over time, generally with interest. Personal loans may also be subject to fees from some lenders. One of the factors for the rising popularity of Personal Loan is that it is an unsecured loan that does not demand collateral and has a short processing period. A Personal Loan can be obtained from any bank or non-banking financial institution of choice. Now, the answer to how much personal loan you can get really depends on the criteria set by the bank and your credit score.

Criteria To Apply For A Personal Loan

To begin, one must be at least 21 years old to qualify for a personal loan in Singapore. The typical age restriction is 65 years old. When people apply for a personal loan, the lender will usually ask them to produce supporting documentation, such as a pay stub. Before one may qualify for a personal loan, most banks would need customers to have an annual income of at least S$30,000. This applies irrespective of whether one is a salaried employee or self-employed. Their annual salary usually determines the maximum amount one may borrow.


To qualify for a personal loan in Singapore, most banks would need a minimum yearly income of S$30,000. Some may also provide personal loans to persons earning less than S$30,000 per year but at a higher interest rate. If you are a foreigner, the yearly income must be between S$40,000 and S$60,000. One can borrow up to S$3,000 if they are a Singapore Citizen or Permanent Resident with an annual income of less than S$10,000. Similarly, if they are a foreigner residing in Singapore and fall into the same income group, the most they may borrow is S$500. With a larger salary, customers are eligible for a bigger borrowing limit. They can borrow up to S$3,000 if their yearly income is between S$10,000 and S$20,000.

If their yearly income exceeds S$20,000, they are eligible to borrow up to six times their monthly income. Most personal loans, such as installment loans, have set interest rates and payback terms. This implies they’ll have to return your loan and interest in installments over months or years.

Myths To Note

When looking for a personal loan in Singapore, it’s important to know the facts. There are many myths and misconceptions about personal loans that can lead you astray. Here are four of the most common myths about personal loans in Singapore and the truth behind them.

Myth 1: The best personal loan is from a bank

Many people believe that the best personal loan is from a bank. However, this is not always the case. There are many personal loan providers in Singapore, including banks, moneylenders, and online lenders. Each of these lenders has different interest rates, fees, and terms. It’s important to compare all of your options before choosing a loan.

Myth 2: Personal Loans have High-Interest Rates in Singapore

Another myth about personal loans in Singapore is that they have high-interest rates. However, this is not necessarily true. Personal loan interest rates in Singapore can vary depending on the lender and the loan amount. The best way to get a low-interest rate is to shop around and compare offers from different lenders.

Myth 3: You Need a Good Credit Score to Get a Personal Loan

Many people believe that you need a good credit score to get a personal loan. However, this is not the case in Singapore. There are many lenders who offer personal loans to people with bad credit. If you have bad credit, it’s important to shop around and compare offers from different lenders. However, it is true that the answer to ‘How much personal loan can I get from bank’, really varies with each situation.

Myth 4: Personal Loans are Only for Emergencies

Many people believe that personal loans are only for emergencies. However, this is not the case. Personal loans can be used for a variety of purposes, including debt consolidation, home improvement, and medical expenses. If you need cash for any reason, a personal loan may be a good option.

Now that you know the truth about personal loans in Singapore, you can make the best decision for your needs.


When applying for a personal loan in Singapore, customers will often be required to supply the following documents:

Singapore Identification Card (IC) or Employment Pass (EP) and passport as proof of identification.

Address proof: Documents proving their home address

Income documentation: The contribution history statement for the previous 12 months to the Central Provident Fund (CPF), latest income tax Notice of Assessment, latest computerized payslip, or salary crediting into the lender’s bank account (if applying at a bank).

Processing fees are administrative fees that are frequently taken from the principal. Take note of this since it is the most significant hidden expense of personal loans. It raises overall borrowing costs and is frequently neglected by borrowers. The loan duration refers to the length of the loan. This influences the amount of interest, repayments, and final cost. In addition to flat interest rates, one needs to be aware of effective interest rates. Effective interest rates (EIR) are a more accurate picture of the real cost of borrowing since they account for all other expenses as well as the loan payback schedule.


Finally, when it comes to taking out a personal loan, it’s critical to guarantee that one can repay it. Before applying, talk to a few banks, financial institutions, and colleagues to see if there are any other options. Whether or whether one intends to apply for a personal loan later, it’s always a good idea to prepare ahead of time and manage expenditures.

Licensed Moneylender in Bugis– Singa Credit Pte Ltd

Established in 1992 and previously known as Yong Seng Credit,
Singa Credit Pte Ltd is Licensed Moneylender in Bugis regularly updated with the latest regulations to be in line with the requirements set out by Registry of Moneylenders.

Please feel free to call 66946166 for more info on our lowest interest rate in Singapore or walk in our office 470 North Bridge Road #02-01 Bugis Cube Singapore 188735.