So you need some extra cash but are not sure how much you’re eligible for?
From banks to licensed money lenders, several financial institutions offer personal loans in Singapore. And their loan amount usually varies depending on factors like income and credit score.
So if you’re asking “how much personal loan can I take in Singapore”, you’d have to review some of these factors to see where you stand. In this article, we’ll explore everything you need to know about taking a personal loan in Singapore.
How Much Personal Loan Can I Take?
The amount of personal loan you can take in Singapore depends on various factors. This includes your income, credit score, employment status, and existing debt obligations.
According to the Monetary Authority of Singapore (MAS), the maximum loan amount you can take is usually capped at 6 times your monthly salary or $100,000, whichever is lower. However, this limit is just a general guideline and actual loan amounts can vary from lender to lender.
As a general rule of thumb, most lenders will typically approve a personal loan amount of up to four times your monthly income. However, this can vary depending on your credit score and financial stability. Some lenders offer higher loan amounts to borrowers with a strong credit history.
Also, licensed money lenders usually offer some of the lowest interest rate for personal loans in Singapore. So if you’re looking for a personal loan with low interest rate, you should consider this option.
What Can A Personal Loan Be Used For?
Personal loans are unsecured loans that can be used for a variety of purposes. They include
- Home renovation: Want to make your house a castle? A personal loan can help you transform your living space. It can get you a new kitchen, or bathroom, or change your home’s aesthetic appeal.
- Wedding expenses: Tying the knot can be expensive, but a personal loan can help turn your wedding day into the fairytale you always dreamed of.
- Medical expenses: Illness can strike anyone, at any time. A personal loan can help ease the financial burden so you can focus on getting better, faster.
- Travel: Itching to see the world? A personal loan can help you book that dream holiday and have the adventure of a lifetime.
- Debt consolidation: Struggling with multiple debts? A personal loan can be used for consolidating existing debts into one manageable monthly payment. This helps simplify your finances and bring a sense of calm to the chaos.
Think of a personal loan as a financial sidekick, always ready to help you out when you need it most. It’s quick, convenient, and can often be approved within a few days. Plus, you can choose the loan amount and repayment period that suits your needs and budget.
Do You Qualify For A Personal Loan?
To determine if you’re eligible for a personal loan, lenders will typically look at the following factors:
- Age: You must be at least 21 years old to apply for a personal loan in Singapore.
- Income: You’ll need to be employed and have a steady income to be eligible for a personal loan.
- Credit score: Your credit score will also be taken into consideration when you apply for a personal loan. A higher credit score means you’re more likely to be approved for a loan.
- Residency: You must be a citizen or permanent resident of Singapore to qualify for a personal loan.
- Documentary requirements: You will need to provide proof of identity, income, and employment, as well as recent bank statements.
Can You Take Multiple Personal Loans?
Yes, you can take multiple personal loans at the same time. However, it’s important to remember that taking multiple loans can increase your overall debt burden and negatively impact your credit score.
It is recommended to consider all other options like reducing expenses or increasing income, before taking out a personal loan. If a personal loan is necessary, it is best to only take out one loan and make sure to have a plan in place for paying it back in a timely manner. Also, it is important to carefully consider the terms and interest rates of the loan to ensure it is affordable and will not create further financial difficulties.
What To Consider When Applying For A Personal Loan In Singapore
When applying for a personal loan in Singapore, there are a few things you should consider. They are:
The first thing to consider when taking a personal loan in Singapore is the interest rate charged by the lender. This is because the interest rate will determine the total cost of the loan and how much you will end up paying back to the lender. Different lenders offer different interest rates, so it’s important to compare the interest rates offered by several lenders to get the best deal.
Another important factor to consider is the repayment tenure. This is the length of time you have to repay the loan. A longer repayment tenure will lower your monthly repayments but will increase the total cost of the loan due to interest charges. On the other hand, a shorter repayment tenure will result in higher monthly repayments but will lower the total cost of the loan.
The amount of money you need to borrow is also an important consideration. While it can be tempting to apply for a higher loan amount, You should only ask for what you need and not more. Applying for more than you need will increase the total cost of the loan and may lead to financial difficulties.
Some personal loans require collateral. It is a security or an asset that the lender can seize if you fail to repay the loan. Collateral may include property, investments, or savings. Consider the value of the collateral and the risk involved in putting up collateral before taking a loan. For example, if you put up your home as collateral and fail to replay, you may lose the roof over your head permanently.
Fees And Charges
You should also consider any fees and charges associated with taking a personal loan in Singapore. These may include processing fees, late payment fees, and prepayment fees. Make sure you understand all of the fees before taking a loan and factor them into your repayment plan.
Your credit score is also an important factor to consider when taking a personal loan in Singapore. A good credit score will increase your chances of getting a loan and getting a better interest rate. On the other hand, a poor credit score may make it more difficult to get a loan or result in a higher interest rate. Make sure to check your credit score before applying for a loan and work on improving it if necessary.
Best Personal Loans In Singapore
Financial Institutions in Singapore offer a range of personal loans with different interest rates and loan tenures. In case you’re looking for a good deal, below are the best personal loans*available:
*Information correct at time of publishing
- HSBC Personal Loan: HSBC is one of the lowest interest personal loan in Singapore. They offer personal loans with a loan tenure of up to 7 years and an interest rate of 6.98% p.a. The loan amount offered by HSBC can range from $3,000 to $70,000, depending on the applicant’s income and financial stability.
- Citibank Quick Cash: Citibank offers an affordable Singapore personal loan interest rate. They provide personal loans with a loan tenure of up to 5 years and an interest rate of 6.99% p.a. The loan amount offered by Citibank can range from $2,000 to $70,000, and can be disbursed within 24 hours of approval.
- UOB Personal Loan: UOB is one of the best loans in Singapore. They offer personal loans with a loan tenure of up to 7 years and an interest rate of 6.88% p.a. The loan amount offered by UOB can range from $3,000 to $70,000, and the disbursal is quick, usually within 3 working days of approval.
- Standard Chartered CashOne: Standard Chartered offers personal loans with a loan tenure of up to 7 years and an interest rate of 6.99% p.a. The loan amount offered by Standard Chartered can range from $3,000 to $70,000, and the disbursal is quick, usually within 2 working days of approval.
You Can Take Up To $100,000 Personal Loan In Singapore
How much personal loan can I take? Well, depending on different factors, some of the best personal loans in Singapore will let you borrow up to $100,000 or six times your income. You can improve your income and credit score to apply for a higher loan.
If you’re wondering how much a personal loan can I take in Singapore, you can quickly find out by speaking to a U Credit loan officer. Apart from offering loan experts who can help you figure out your financial situation, U Credit’s affordable interest rate and flexible repayment options are one of the best for a personal loan in Singapore. Apply for a loan at U Credit today to enjoy the best personal loan in Singapore.