There are different types of personal loans in Singapore. These are offered by banks and financial institutions for various purposes as well. Most people opt to avail of these loans instead of using their credit cards for their immediate funding needs. Personal loan are considered to be the fastest way to have access to cash for emergency needs or unexpected expenses. Credit limits and loan amounts may vary depending on whether the borrower is a first time client or if he has done business with the bank and has maintained good payment records.
Most of the banks that offer personal loans have simple requirements. A potential borrower must be at least 21 years of age and is employed by the same employer for at least 6 months to one year. The salary ranges to be approved for a loan must be at least 20,000 to 29,000, 30,000 and above, and 60,000 and above. The loan amount is based on a borrower’s salary and capability to pay. Some banks may even need proofs of payment and proofs of billing. This will help them gauge the borrower’s ability to pay their loan on time.
Some banks that offer personal loans in Singapore may require credit checks while some banks don’t. Locals and permanent residents are often eligible for these personal loans from most banks. There are also those banks that approve loan applications from foreigners for as long as they can present legal documents and bank accounts that show they are capable of repaying the loan amount.
Banks that offer personal loan in Singapore have repayment terms that are very convenient. Borrowers can choose from 12 months, 24 months, and 36 months. The interest rate is lower for shorter payment terms. Many loan clients, however, prefer longer payment terms because this spreads out their payments and results in lower repayment amounts.
Most banks that offer this type of loan lets borrowers use their own savings account or checking accounts that are associated with debit cards. This is very convenient for those who already have existing accounts because the loan amount they get approved for gets deposited directly to their accounts. Some banks offer new ATM cards or pre-paid debit cards to borrowers who don’t have any checking or savings accounts of their own. The ATM card is linked to the account where the approved loan amount is deposited. In most banks, this is also the same account where they automatically debit the regular loan repayments.