First published: 31 December 2021 @ 11:37 am
Client: Clementi Moneylender | Synergy Credit
Written By: The Big Writer
Published At: Read More
Sometimes, there may be a few occasions when we find ourselves in need of cash, be it due to unforeseen circumstances like healthcare expenses, funeral expenses, or while planning for large milestones in life such as weddings, buying a car or house – that’s when we might need to get a Singapore cash loan.
What is a cash loan in Singapore?
A fast cash loan in Singapore typically refers to a personal loan. They are often used to service debts, finance one’s emergency needs, or to help with cash flow for large purchases.
Personal loans typically have a repayment period of 1 to 5 years, depending on whether you are taking a loan from the bank or a licensed money lender. They also tend to have a higher interest rate and lower loan value as compared to other types of loans, such as business loans, payday loans, title loans, pawn shop loans, etc.
Where can you get a Singapore cash loan?
There are few places where you can obtain a fast cash loan in Singapore, such as local banks like DBS, OCBC and UOB. The amount you can borrow, as well as interest rate, depends on various factors such as your credit score, income, collaterals, etc.
If it may be tough for you to qualify for a bank loan or if you need cash urgently (as bank loan applications take up to two weeks for approval), you might want to consider an alternative – licensed moneylenders.
Licensed moneylenders are regulated by the Ministry of Law and provide safe and legal loan services for those who need a fast cash loan in Singapore. They usually have faster approval processes and less stringent credit checks than banks, but offer loans with higher interests.
Refer to MinLaw’s registered list of licensed money lenders to check if your money lender is legal.
Who is eligible to apply for a cash loan?
Applying for a bank loan
Applying for a loan from a bank can be tricky. You will need a good credit rating, which is key to negotiating a lower interest rate while bargaining for a higher loan value.
To qualify for a personal loan from the bank, you will also need to be making at least $20,000 a year if you are a Singapore citizen or Singapore permanent resident. Foreigners, however, must have an annual income of at least $40,000 and above to qualify.
The loan limit will also depend on your income – those who earn less than $30,000 a year may find it harder to borrow beyond twice their monthly income.
Applying for a loan with money lenders
Getting a loan from a licensed money lender is slightly different. You can opt for either a secured or unsecured personal loan with licensed lenders.
For Singapore citizens and PR, the maximum personal loan amount for an unsecured loan is $3000 if your annual income is less than $20,000. With an annual income of $20,000 and above, you may borrow up to 6 times your monthly income.
For foreigners, those who are paid an annual stipend of less than $10,000 may only borrow up to $500, and S$3,000 if your annual income is between $10,000 and $20,000. Those who make at least $20,000 annually may borrow up to 6 times of your monthly income.
Remember to bring along your NRIC, personal bank statements, proof of income, etc. Preparing these documents ahead of time can certainly save you some time and speed up the application process.
How to apply for a Singapore cash loan
Applying for a bank loan
You can apply for a personal loan with the bank online, on the bank’s official website and upload all the necessary documents required for the bank to process your application. You can also opt to use Singpass’s MyInfo feature to auto-fill the blanks on your application form.
Personal loans are also usually disbursed via existing credit lines with the bank, which is one of the fastest and easiest ways for you to obtain your Singapore cash loan. However, the time taken for banks to disburse its cash can vary, with some applications taking as long as two weeks to be approved.
Applying for a loan with licensed money lenders
With licensed moneylenders, the process is similar, with the only difference being that it is compulsory to go down personally to sign the necessary documents before the cash is released to you.
If you have a bad credit report, this option may be more suitable for you. Licensed moneylenders do not typically look at credit scores, which lowers the barrier for you to borrow when you need it most.
Syncredit promises a simple and fast application process, with competitive interest rates from 2.27% a month. We also offer flexible repayment terms of up to 12 months, depending on your needs. Apply now!
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