All About Loan In Singapore
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When Getting A Loan In Singapore Is Not Straight Forward

There can be a number of reasons why you will want to apply for a personal loan in Singapore. In fact, mass advertising of personal loans have made it seem rather convenient and access to it appear to be easy. The perception is that if it is not easy to get approvals from banks and lenders, why would they advertise personal loans island wide. When approval rates are low, it would mean less profits for the lenders and thus might not justify the spending spree for mass marketing. With the influx of foreigners in Singapore, the market for personal loans are also getting bigger.

Contrary to what you may think, getting your hands on cash loans may not be as easy and straight forward as you think in a lot of circumstances.

Purpose of loan. An important item that a bank may want to know is what you are using the personal loan for. This is understandable as there are a lot of specific loans for specific purposes available. For example, there are education loans for school fees, property loans to purchase properties, renovation loans to hire a proper contractor, business loans for businesses, etc. There are even government grants for a lot of purposes. This means that a personal loan has to serve your personal needs. If you are to inform credit assessors that you are using the funds to buy property or buy machinery, your application might be refused. You will then be redirected to the specific loans that are conceptualized for these specific purposes. Personal uses can include travel, personal emergencies, insurance commitments, holidays, personal investments, etc. So as long as your purpose of the loan is for personal use, you should be able to avoid this being an issue.

Bad credit history. In case you do not know, your credit record is stored somewhere in a database. Whenever you apply for a loan, this record will be retrieved for assessment to evaluate your money management habits and behavior. This is when you might find that a credit issue that you thought had been resolved in the past can come back and haunt you. The thing is, every bank, financial institution or lender has the right the review your personal credit especially if they are dealing with you for the first time. It is the only way they can assess your credit behavior as they do not have any of your records. A settlement is not that same as being paid off.

Personal income. Surely you would expect that a bank wants to see whether you have the income to repay the loan. So if you are making $2500 a month, you are really pushing it if you are seeking a $100,000 personal loan. In essence, you would take more than 4 years to settle the loan if you use all of your salary as repayment. This does not make sense. Even if by some weird scenario that a bank lends you that amount, you might not even have the appetite to stomach it. So remember to borrow within your means and seek an amount that make sense. The very maximum that you can obtain is usually 4-6month of the monthly salary.

The 3 points above are the most common circumstances where getting a loan in Singapore is not straight forward. Since there are more and more licensed money lenders making their presence felt here in Singapore, you might find that going to them can mean less hassle and documentation. The interest rates however are going to be slightly higher than a bank.