Singapore Personal Loan - Are You Qualified To Get A Personal Loan?

By Randy Detamore


Since very few people have the money to get through the tough times, a personal loam will be essential. This is of course a loan that is going to help you to consolidate your bills, have funds to send kids to boarding schools and even give you the money needed to help with a big wedding. No matter what you end up needing money for, there will be a loan out there, if you can get approval.

Because of that, you will need to look at the qualification process. Many financial establishments have guidelines in place that are going to help both the lender and the borrower stay safer. That does mean that typically, a personal loan will only be given to those from the age of 21 to 65. In addition to the age requirement, identification will need to also be given. While the ages may seem strict, they are done so to ensure that borrowers are mature enough to understand the loan, while elderly victims aren't victims to predatory lending.

The personal loan Singapore financial institutions offer, also require that an individual be a true citizen of Singapore or at the very least are a permanent resident. This reduces the risk of lending taking place and having a short term resident collect the funds and then fleeing with the funds.

While looking for a personal loan Singapore residents will also need to ensure that they have an annual gross income that exceeds S$20,000. Based on your income and borrowing history, you will be approved for a specific dollar amount that can be borrowed. Included in this dollar amount will be the interest and payments that will be part of the repayment process.

Traditionally, the following formula is used when determining how much you may borrow.

If you make under S$20,000 can only borrow no more than S$3,000. Those who have an annual salary above S$20,000, but fall short of S$30,000 can only borrow less than two months' worth of salary. Should you make more than that amount, but don't quite make S$120,000 the most you will be able to borrow will be four months' if salary. Should you make over this high, then the bank will be able to determine the amount that they will be willing to lend you.




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